$BTC
🔴 The relationship between “trading volumes” and “share/currency price”:
1️⃣ Price falls + volumes decrease = Accumulation (Positive)
🔸 Explanation: The price is falling, but people are not selling in large quantities → this means that the sellers are the small traders, while the big players are quietly buying (smart accumulation).
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2️⃣ Price falls + volumes increase = Negative
🔸 Explanation: The decline is accompanied by large selling volumes → this means there is real selling pressure from large traders or institutions → clear weakness in the market.
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3️⃣ Price rises + volumes decrease = Distribution (Negative)
🔸 Explanation: The price goes up, but there is no real entry in large quantities → there might be distribution by the whales in stages, selling with each rise.
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4️⃣ Price rises + volumes increase = Positive Buying
🔸 Explanation: Price increase accompanied by strong trading volume entry → this indicates a real buying appetite and conviction in the market, and this is a positive indicator.
