What is ,trading volume

trading volume

what is 'trading volume'?

Trading volume indicates how much of a specific cryptocurrency was traded within a certain time frame. Trading volume is a decisive indicator for Technical Analysis to evaluate further price developments.  

Trading volume Bitcoin
Trading volume of Bitcoin on 02.11.2018

'Trading volume' in technical analysis

Volume is important to determine the sustainability of price swings. If e.g. Bitcoin has rapidly risen in price it is helpful to compare the trading volume in order to see if it correlates proportionally. If trading volume is lower, a vital correction could be around the corner while a correlation or rater a disproportionate volume in comparison to price developments would indicate that the price swing is probably going to sustain. 

Share on facebook
Share on twitter
Share on reddit
Share on telegram