What does increasing trading volume means to traders? - page 2.

slaman29

legendary

Activity: 2674

Merit: 1226

Livecasino, 20% cashback, no fuss payouts.

You must be using Binance buddy

Volume usually just indicates interest. But you need to see more. Is all the volume from millions of trades? Most likely in your pair. But we all know about wash trading, and it happens a lot on DEX to pump volume (buy and sell between same entity). Other posts before this above warn about this, it's a very fair warning.

EL MOHA

sr. member

Activity: 504

Merit: 279

Quote from: Oshosondy on August 19, 2024, 07:07:47 AM

Thanks for the replies. Immediately I saw the notification, bitcoin has started to increase if you check the last 45 minutes using the 15 minutes candles. But I will just not prefer to put it into consideration to analyse the market price of a coin. But it can be one of the subordinates. The crypto market generally now is bearish and not good for long position. Although the RSI was low at the time and the price of bitcoin has significantly gone more than the lower BB. If you use the 1 hour candles, you will see what I am talking about.

Those notifications are very important or say essential most especially if you’re a trader. Volume necessarily doesn’t mean that the market is going to be bullish or even increase in price sometimes it is even an indication or a bias go short on the market. As you know the volume data that the exchange reports is usually the total volume of all the transactions both the long positions and the short positions, so a notification about a volume increase will need to check the kind of transactions pumping that volume, if it is the buyers pumping In more volume then it is an indication of a potential price pump but if it is the seller you know it is the other way.

This is what some Indicators like supply and demand indicators indicate. There is also platforms like Coinglass where you can check for this kind of information to help add to your confluence.

Silberman

legendary

Activity: 2534

Merit: 1338

Quote from: Oshosondy on August 19, 2024, 06:05:21 AM

I know bitcoin is highly liquid enough. One of the exchanges that I am using sent me a push notification which says that the trading volume for BTCUSDT has increase 3061% or so in 15 minutes.

I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

Without a doubt the volume is an important metric, since if it raises it indicates a raising interest on the coin, brings more liquidity and it often signifies an increase on the price may be on the cards as well, however when there is such a high increase, especially in such a pair that should be quite big already, it tells me the exchange had a low volume to begin with, and maybe it is time for you to consider to use a different exchange instead.

hyudien

hero member

Activity: 2156

Merit: 605

Leading Crypto Sports Betting & Casino Platform

For traders the increase in trading volume is certainly a green light to be able to take advantage of the situation to determine the position. It's just that determining the time for execution is quite difficult, because even though there is an increase in the trading volume of certain assets ex: BTCUSDT or ETHUSDT the process does not guarantee at the same time. There is a pause that is deliberately done to enter at the right time, sometimes there is even a scenario detected such as a spike in demand but it turns out to be manipulation to lure traders to make purchases first.

GreatArkansas

legendary

Activity: 2506

Merit: 1394

Quote from: Oshosondy on August 19, 2024, 06:05:21 AM

(....)
I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

Consider also some whales who want to make money or some big players in the market right now that can easily manipulate some bots or make the price of Bitcoin shake.
What others said above is correct, it's not always price will go up if the volume increases, I agree with that.

Consider also that maybe the exchange you are using has some recent outage or issue about their notification or data about the notification you got.

Oshosondy

legendary

Activity: 1624

Merit: 1200

Gamble responsibly

Quote from: OmegaStarScream on August 19, 2024, 06:54:16 AM

A sudden increase in trading volume means there's an interest in the coin. It doesn't necessarily mean that the price is going to increase but it's a good indication that there's hype, interest, liquidity.... That's usually how those "signal bot" works if I'm not mistaken. Based on the trading volume.

Quote from: Coin_trader on August 19, 2024, 06:59:46 AM

It means there’s a surge on demand. There’s a lot of traders nowadays trading based on the trend for short term profit.

The notification is either to notify all the holders of Bitcoin in both spot and futures about potential profit occur or to attract users to trade on the trend since short term traders can get quick bucks by just riding the trend.

Thanks for the replies. Immediately I saw the notification, bitcoin has started to increase if you check the last 45 minutes using the 15 minutes candles. But I will just not prefer to put it into consideration to analyse the market price of a coin. But it can be one of the subordinates. The crypto market generally now is bearish and not good for long position. Although the RSI was low at the time and the price of bitcoin has significantly gone more than the lower BB. If you use the 1 hour candles, you will see what I am talking about.

Coin_trader

copper member

Activity: 2800

Merit: 1179

Leading Crypto Sports Betting & Casino Platform

Quote from: Oshosondy on August 19, 2024, 06:05:21 AM

I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

It means there’s a surge on demand. There’s a lot of traders nowadays trading based on the trend for short term profit.

The notification is either to notify all the holders of Bitcoin in both spot and futures about potential profit occur or to attract users to trade on the trend since short term traders can get quick bucks by just riding the trend.

OmegaStarScream

staff

Activity: 3500

Merit: 6152

Quote from: Oshosondy on August 19, 2024, 06:05:21 AM

-snip-
I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

A sudden increase in trading volume means there's an interest in the coin. It doesn't necessarily mean that the price is going to increase but it's a good indication that there's hype, interest, liquidity.... That's usually how those "signal bot" works if I'm not mistaken. Based on the trading volume.

Oshosondy

legendary

Activity: 1624

Merit: 1200

Gamble responsibly

I know bitcoin is highly liquid enough. One of the exchanges that I am using sent me a push notification which says that the trading volume for BTCUSDT has increase 3061% or so in 15 minutes.

I know what trading volume is but why the notification? Are traders using it to take advantage in the market to make profit?

Topic: What does increasing trading volume means to traders? - page 2. (Read 305 times)