Volume #VolcanoEnergy
Volume indicates the quantity of an asset that was traded during a specific period. A high volume indicates strong interest in the asset, while a low volume may suggest the opposite.
When high volume accompanies a trend reversal, chart pattern, or support and resistance breakout, it confirms that the event is genuine. This is because traders are showing they believe in and support the new price direction.
Moving Averages #MovingAverages
The moving average (MA) indicator shows the rolling average price of an asset over time. Its calculation is dependent on the timeframe and duration.
For example, if you’re working with the 1-day chart, the 20-day moving average for today is calculated by taking the prices over the last 20 days and then averaging them (dividing by 20). This average is then represented as a data point on the chart.
When you move on to the next day, the price for the day furthest to today is removed and replaced by yesterday’s price for the calculation.