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CryptoFrancoARG
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WHAT IS VOLUME AND WHY DOES IT MATTER IN TRADING?
There’s a saying in trading: "Price lies. Volume doesn’t."
What is volume?
The number of contracts or assets traded over a given period of time.
Why does it matter?
Because it confirms whether a price move is real or a trap.
Example:
$BTC rises 3% with very low volume → the move lacks conviction and can be easily reversed. $BTC rises 3% with volume 3 times the average → there is real institutional participation; the move has strength.
The same applies to sell-offs.
A support break with high volume → a strong bearish signal. A support break with low volume → a possible bearish trap; the price may recover.
In all my signals, I analyze relative volume before publishing. If volume doesn’t back it up, there’s no signal.
Analysis with volume confirmation. Everything in my profile. $BTC $ETH $SOL