How volume really works?
Hello everyone welcome back, Assalamu Alaikum. How are you all? I hope everyone is very well, I am Alhamdulillah fine too.
I have been studying about Tron Blockchain,cryptocurrency,trading and etc for a few days now.
Thanks to our founder and moderators for this nice community.This is my another new post in Tron Fan Club community.
In today's post we are going to learn how volume really works?
Before starting today's post i would like to recomend you to read my previous post. Link: What is Volume in Cryptocurrencies.
So volume is something that you want to look for especially in times when something is changing directions or if there's a pattern because it's going to confirm what you're seeing you know volume always acts as a confirmation to it.
What you're seeing if you know if i tell you know the price of a house where i live, let's say 500 000. or i tell you it's two million and you may ask me why?
I'll tell you because one house i saw sold at two million will you believe me or that does that does that mean all other houses or is that the value of houses.
No! it just means one of them sold at that price now if i told you there's you know a hundred thousand houses that sold for an for two million each then does that give you more confidence, that the price of a house is 2 million.
Because more people agreed on that price yes so it's the same thing in trading the more there is volume the the more people agreed on that price because they all trade it at that price.
So it gives you confidence that that price uh is worth something right if it was just a few buyers who bought and there was no sellers and the price was there does that mean you know that this is the price it should be or does that mean it was just that because you know there was a lack of other market participants.
So you always want high volume when you're looking at these things. So we can say that volume is something that is really important for anything that is traded not just crypto coins. In Cryptocurrencies volume mostly depends on trends it's my personal opinion.
Saying goodbye today. Another day I will appear among you with something else.
Let me know in the comments how you like my post today.
Thanks to all.
Take love
regards,
@nusuranur
https://twitter.com/nusuranurnowrin/status/1512845974460243968?s=21&t=USj7ZKM96Wg3uXIP-RJukA
Volume is an important factor to design the actual buying pressure of the Market. So, I'm personally using volume indicators to further analyse market conditions before taking an entry. Thank you very much for this important article.
you're right.welcome brother.
I really like your post today. An indicators that is very important for creating volume. And those who trade must know. Thank you very much for raising this issue with us
i also like your comment.thank you so much.