Volatility trading: how to trade on volume profitably

Volume trading is a type of short-term trading in which the trader bets on increased volatility. The profit comes not from the price bet, but from the detection of an increase in trading volumes.

The entry into a trading position when trading on volumes occurs at any time because the price of an asset is not an important indicator.

In many ways, volatility trading is similar to scalping. The only difference is that this type of trading seeks to lock in profits at the maximum price volume.

However, it is worth remembering that sometimes this type of transaction is closed not even in hours, but in a few minutes.

For profitable volume trading, a trader should use the following tools:

◾️ Calendar of events

Thanks to it, you can easily determine the moments of growth, while spending a small amount of resources.

◾️ Candle configurations

Using candlestick configurations, traders can track those types that indicate that the market will now change its direction, which will lead to a sharp increase in trading volume.

◾️ Indicators of the trading volume

Based on the name, it is obvious that when trading on volumes, these indicators are the most important, namely: volume, money flow index.

Using all these tools, trading on volatility can be much easier and more efficient, as well as very accurately determine the entry and exit points of a position.

What do you need to remember when trading volume?

◾️ High profitability has a downside in the form of high risk
◾️ Concentration on the chart should be maximum, one mistake can lead to the loss of all capital
◾️ You are obliged to constantly and continuously monitor the market

Despite the fact that trading on volumes is a very difficult process that requires control, attention, and psychological efforts, thanks to it, you can get big profits.

Using the (Cryptology)[https://cryptology.com/app/signup/?utm_source=medium&utm_medium=article&utm-nav=futures&utm_campaign=trading&utm_content=nika&utm_term=volatility] exchange, you can trade volatility as conveniently and efficiently as possible, and spend much less effort thanks to technical analysis tools.