Category: 4. Understanding crypto trading volume

Momentum Increasing volume of buying will push the price of a cryptocurrency higher, but for that to continue, volume must be maintained. In that way, volume can be a good indicator of price momentum. Rising prices on declining volume can indicate declining momentum and potential reversal. Falling prices on declining volume can equally signal a… Continue reading Common Volume Indicators 

The total volume traded for a given cryptocurrency has a direct relationship with how volatile it is. Remember, price represents the balance of opinions between buyers and sellers.  If an equal amount (in terms of volume) is being bought and sold then price will be stable, but stability suggests that people’s opinion about the price… Continue reading Total Volume & Market Efficiency

What you’ll learn What does volume mean? Why is it important Common volume indicators Dangers within volume data If you’re sequentially following Learn crypto’s section on how to trade cryptocurrency, you’ll be gradually learning about the basic tools for understanding price patterns and signals.  Learning how to trade cryptocurrency comes down to how successful you… Continue reading Understanding crypto trading volume