Hello I am bitjin. I’ll tell you about trading volume today.
The only thing moving in the market before price is trading volume Other indicators are attributed to price, but volume is likely to move before price But you don’t know the volume, so let’s look at how to check the volume and the volume indicator. I think the relativity of trading volume is important. Depending on the size of the candle, the difference in trading volume always occurs. For example, take a look at three bullish candles here. The last of the three bullish candles has the highest volume trading. Can we say this and say that the volume is high?
no. The reason is that the size of the bullish candle is different. In order for the price to move, the quantity of order books must be eliminated. In order to move the price more, someone has to trade at the market price Therefore, the trading volume varies depending on the size of the candle. Of course, it depends on the specific support or resistance section, but the difference is small. Let’s compare two bearish candles here The size of the two candles is similar, even if you check the tail of the candle. By the way, the volume of the second candle is more. What does this mean? There was more buy than the quantity in the order book. It means someone bought at the market price. This difference cannot be made by us.
It means that a certain group participated in a buy. After all, prices have risen since then.
If you say “someone has a lot of volume,” Check first that the volume is relative. If the volume is higher than other candles, We must think of a change in trend. Many traders are not familiar with this part. However, long-term trading volume cannot be checked in this way. So I’ll explain the indicator that contains the volume There are other good indicators besides ‘OBV’ and ‘MFI’ which you know the most. First is ‘OBV’, ‘On Balance Volume’
This is the oldest trading volume indicator. This indicator adds the volume of Bullish Candles and subtracts the volume of Bearish Candles. When price does not change It is helpful to check the direction of this indicator. It looks a bit moving here,
It doesn’t help much in Bitcoin. The next indicator is ‘Money flow’
This indicator is also famous. This indicator can be thought of as a measure of trading volume in ‘RSI’. So the way to check is the same as ‘RSI’.
You can check the oversold I think it is more reliable than ‘RSI’.
And we use it a lot to find divergence. Next is ‘Accumulation / Distribution’. I’ve explained it before. This is similar to ‘OBV’ This indicator includes the volume of the candle as well as the trading volume. I believe in this indicator more than ‘OBV’ When there is no price movement, you can see that it moves first. You can also check divergence by linking prices. ‘OBV’ has no divergence here, but ‘Accumulation / Distribution’ has divergence And then the price fell. The next indicator is ‘Percentage Volume Oscillator’ Also called ‘PVO’ or ‘Volume Oscillator’. This indicator can be thought of as ‘Volume Moving average’.
The trading view is set to 12 and 26. Compare with ‘Moving average’ Set ‘Moving average’ to 12,26 Let’s compare the gold cross and the dead cross of the two indicators. You can see that ‘PVO’ moves before ‘Moving average’. From the 15th to the 30th, the cross was made first. In the end, we can see this signal because the trading volume moves before the price. But that’s sensitive.
So it’s better to check with ‘Moving average’. So far I have explained the trading volume. It is enough for you to know these things. And you have to check the volume of each major exchange together And bybit trading competition opens We can apply for participation from February 24.
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