#froggie
📊 What is "Volume Increase" and why is it important?
**Trading Volume** is the total number of units traded of a particular currency over a specified period of time. It is considered a measure of interest and enthusiasm among buyers and sellers.
**"Volume Increase" or "Volume Spike"** occurs when there is a sudden and noticeable rise in trading volume, often much larger than the average volume in the previous days or weeks. It's like seeing crowds suddenly gather in front of a store - it's a signal that "something" is happening.
**To determine if the volume is "high" or not, professionals use the concept of "Relative Volume"** which is comparing the current trading volume to the average trading volumes over a previous time period (like the last 10 or 20 days). When the current volume exceeds this average significantly (like being twice or more), that is the signal you are looking for.
📊 What is "Volume Increase" and why is it important?
**Trading Volume** is the total number of units traded of a particular currency over a specified period of time. It is considered a measure of interest and enthusiasm among buyers and sellers.
**"Volume Increase" or "Volume Spike"** occurs when there is a sudden and noticeable rise in trading volume, often much larger than the average volume in the previous days or weeks. It's like seeing crowds suddenly gather in front of a store - it's a signal that "something" is happening.
**To determine if the volume is "high" or not, professionals use the concept of "Relative Volume"** which is comparing the current trading volume to the average trading volumes over a previous time period (like the last 10 or 20 days). When the current volume exceeds this average significantly (like being twice or more), that is the signal you are looking for.