1- What does trading volume mean?
Trading volume is the number of units (currencies - shares) that have been bought and sold during a certain period. The higher this number, the more activity and strong movement in the market. The lower it is, the more the market is calm and lacks significant interest.
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2- When is trading high?
When there is strong news or an important announcement.
At market opening or during peak times.
When large investors (whales) come in to buy or sell in massive quantities.
When strong opportunities appear and everyone rushes after them.
During periods of strong trends (like when a currency is skyrocketing or plummeting).
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3- When is trading low?
During holidays or breaks.
When the market is boring and there is no new news.
When investors feel that the direction is unclear and prefer to stand by and watch.
After a period of severe decline, when people are afraid to enter.
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4- How to use trading volume?
High volume with rising price = there is real buying power and this is positive.
High volume with falling price = there is strong selling and this is negative.
Weak trading with slight rise or fall = the movement is not strong and is likely not sustainable.