📊 How to Study Volume in Cryptocurrencies and Know When It's "Good"?
If you want to better understand market movements, you need to master volume. It shows traders' interest and can indicate whether a price movement has strength or not. Want to learn how to analyze this? Come with me! 👇
✅ What is volume?
Volume is the amount of a cryptocurrency traded over a certain period (1h, 1D, etc). It shows if there are many people buying/selling — and this directly influences prices.
🔍 How to analyze volume?
Open the coin chart (on Binance or TradingView)
Activate the volume visualization (usually displayed as bars at the bottom of the chart).
Look at the volume over different time frames (1H, 4H, 1D)
This helps to understand behavior in the short and long term.
Compare volume with price:
Price rising + high volume = signal of buying strength 💪
Price falling + high volume = potential selling strength 🚨
📈 How to know if the volume is good?
✅ Volume above average:
If the bars are above the average volume line, it’s a sign of interest and a possible strong movement.
✅ High volume + strong candle:
Large green candle + high volume = strong buying coming.
Large red candle + high volume = strong selling or a drop starting.
✅ Compare with history:
Is the current volume higher than in recent days? Something big might be about to happen. 👀
🛠️ Indicators that help:
OBV (On Balance Volume) – shows if the volume is coming in or going out.
Volume Profile – shows the prices where there was the most trading.
VWAP – volume-weighted average price, great for identifying support and resistance.
🚀 Final tip:
When you combine volume + reversal or breakout candle, you have a powerful signal! Keep an eye on these moments because many opportunities arise there. 😉
Need help analyzing the volume of a token? Reach out to me in the comments! 👇
