Volume Indicator #vol
It is an analytical tool used in the cryptocurrency market to measure the total quantity of currencies traded over a specific period (usually 24 hours). Volume is considered an important metric as it can provide information about market activity and the strength of price movements during a specific period.
Simplified Explanation of Trading Volume (Vol)
• Increased Volume: When trading volume is high, it means there is strong demand from traders. This can be seen as a signal of stability or a strong change in price direction.
• Decreased Volume: Indicates low activity and may mean that investors or traders are not making strong decisions, which could create uncertain price volatility.
Best Analyses Using Trading Volume (Vol)
1. Trend Analysis with Volume: Interest increases when high volume aligns with upward or downward movement. This indicates that there is strong market support in that direction.
Example: If the price rises with an increase in volume, this may indicate that the upward trend is strong and continuing.
