Hello! I am new to this world but I would like to share some key indicators that help me make more sensible financial decisions.
First, let me tell you that crypto is not a 'quick' way to 'make easy money', and be wary of anyone who assures you otherwise. You need to study a lot first!
Today we will talk about Volume:
• Trading Volume indicates how much an asset has been bought or sold over a specified time period (24h).
• The higher the Volume, the greater the liquidity and reliability of price movements.
• Let's take #ETH for example. If $ETH breaks a limit with high volume, it means the market supports the rise.
• If ETH rises with low volume → Risk of a false breakout.
Keep in mind that a rise without volume = Possible price manipulation. This could be a 'market trap' where large investors artificially raise the price to attract purchases before selling.
I hope this helps you, and we will see you in the next edition of Financial Indicators for Beginners 👼.
Disclaimer: this is for informational purposes and is not financial advice.