$BTC $ETH $SOL What are the secrets of the volume indicator
If you are looking for a quick look at the “secrets” of the volume indicator in trading, here are some important points:
Trend confirmation: Increasing volume with rising price indicates confirmation of an uptrend, and decreasing volume with falling price indicates confirmation of a downtrend.
Change warning: Unusual changes in volume may indicate potential changes in trend, and can be used as warning signals.
Comparison with moving averages: The volume indicator can be used with moving averages to identify long-term changes in volume.
Interaction with other indicators: The volume indicator can be combined with other indicators such as RSI or MACD for a more comprehensive analysis.
Note when trading with news: Trading volume can be significantly affected by economic news and political events, making it important to monitor during these periods.
Focus on quiet trading: Sometimes, quiet trading volume can indicate that the market is ready for a strong move in a certain direction.
Please note that using the volume indicator should be part of a more comprehensive trading strategy and should not be relied upon solely for making decisions