Sales volume is one of the most valuable and undervalued indicators on the market. It shows how many people are buying or selling a coin.
Before making a decision based on any other indicator, it is recommended to check the volume of sales. If there is a significant price movement in a certain direction, then there must be an âimpulseâ of movement, behind which there is a sufficient number of people.
The number of traders behind the price movement should be counted as "mass", which should then be multiplied by "speed" to get "momentum strength". However, the fewer traders involved in a trade at any given moment, the smaller the "momentum". That being said, less momentum will mean less âprice inertiaâ â a situation where the price can easily reverse.
Accordingly, if the price reaches a new high or low, and the volume falls. This price-volume difference may indicate a trend reversal.
