A picture of Gate Square helps you understand the "relationship between price and Trading Volume", grasp the core logic of volume-price trading methods, and assist you in seeing the capital trends behind the market!
✅ Price increase + Trading Volume increase: The upward trend is supported by trading volume, indicating a healthy market, with the potential for continued rise, making it a good opportunity to add positions / go long. ⚠️ Price increase + Trading Volume decrease: The upward trend has not been confirmed by trading volume, which may be a "false rise". Be cautious of the risk of market reversal and beware of a pullback. ✅ Price drop + Trading Volume increase: The downtrend is supported by trading volume, strengthening the bearish momentum, which is an important signal for shorting/taking profit. ⚠️ Price decline + Trading Volume decrease: Weakness in the downtrend, possible stabilization and rebound, caution is needed for short positions, pay attention to reversal signals.
The relationship between volume and price is an important tool for traders to interpret market intentions. Mastering its use can greatly enhance your analytical judgment. The editor has organized it into clear charts for you, and it is recommended to bookmark and share it immediately to help you avoid detours in trading!
💬 Have you encountered a market trend of "divergence between price and volume" recently? Feel free to share your observations and trading strategies in the comments section, let's exchange and learn together! You are also welcome to post with images to discuss #量价关系# , and talk about the market signals of major cryptocurrencies recently ~
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A picture of Gate Square helps you understand the "relationship between price and Trading Volume", grasp the core logic of volume-price trading methods, and assist you in seeing the capital trends behind the market!
✅ Price increase + Trading Volume increase: The upward trend is supported by trading volume, indicating a healthy market, with the potential for continued rise, making it a good opportunity to add positions / go long.
⚠️ Price increase + Trading Volume decrease: The upward trend has not been confirmed by trading volume, which may be a "false rise". Be cautious of the risk of market reversal and beware of a pullback.
✅ Price drop + Trading Volume increase: The downtrend is supported by trading volume, strengthening the bearish momentum, which is an important signal for shorting/taking profit.
⚠️ Price decline + Trading Volume decrease: Weakness in the downtrend, possible stabilization and rebound, caution is needed for short positions, pay attention to reversal signals.
The relationship between volume and price is an important tool for traders to interpret market intentions. Mastering its use can greatly enhance your analytical judgment. The editor has organized it into clear charts for you, and it is recommended to bookmark and share it immediately to help you avoid detours in trading!
💬 Have you encountered a market trend of "divergence between price and volume" recently? Feel free to share your observations and trading strategies in the comments section, let's exchange and learn together! You are also welcome to post with images to discuss #量价关系# , and talk about the market signals of major cryptocurrencies recently ~