Hello Traders!

Volume matters!!!
How many of you incorporate trading volume into your analysis? If you don't, you should definitely consider it!

Reading volume fluctuations in trading is a very useful tool to understand what is happening at that moment with that specific asset (and in the case of some like #BTC , it can give us an idea of the overall market!).

Knowing how to identify changes in volume helps us confirm bullish trends, detect possible trend changes, or even identify support and resistance levels!

Let's look at today's chart, for example! The following is a chart with 1D candles of #BTC in which we can see how price increases and decreases have coincided with increases and decreases in volume, as well as in its last major rally and in a previous correction period! When the price of an asset rises accompanied by a significant increase in trading volume, it indicates strong buying interest and reinforces the upward momentum. Conversely, if the price declines with a notable surge in volume, it suggests intense selling pressure and validates the downward movement. Therefore, analyzing volume alongside price action provides valuable insights into the strength and sustainability of market trends.

As always, remember to combine volume analysis with other indicators and always do your own research! ( #DYOR ).
Remember there isn't a foolproof indicator!

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