1. What Is Volume?
Volume is the total number of coins traded over a specified period. In technical analysis, it is the most important data after price.
“Volume precedes price” — Volume helps reveal whether a price move is genuine or false.
2. How to Interpret Volume
- Rising price + Increasing volume → A healthy rise. The trend may continue.
- Rising price + Decreasing volume → A weak rise. A reversal is possible.
- Falling price + Increasing volume → Strong selling pressure. Further declines are possible.
- Falling price + Decreasing volume → Selling exhaustion. A bottom may be near.
3. Volume Indicators
① OBV (On-Balance Volume)
A cumulative indicator that adds volume on bullish candles and subtracts it on bearish candles. The OBV trend can reveal direction before price does.
② VWAP (Volume Weighted Average Price)
The average price weighted by trading volume. Widely used by institutional traders. Price above VWAP is bullish; price below it is bearish.
4. Volume Surge Patterns
📊 A Volume Explosion Deserves Attention!
Volume reaching three times or more its average may mark the start of a large move. A volume surge after an extended sideways period is particularly a signal that a trend is beginning.
5. AI Volume Analysis
AI monitors volume patterns in real time, detects unusual changes in volume, and incorporates them into trading.
🃏 AI Analyzes Volume Too
AI monitors changes in trading volume around the clock in real time.
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