What does increasing trading volume means to traders?

shield132

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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.

Isn't it unusual to see 3061% in 15 minutes? It seems that someone sold or bought lots of Bitcoins. Increased trading volume means increased interest in either buying or selling. For example, when there is a FUD and Bitcoin crashes, trading volume is very high because everyone tries to sell it while others find it as a good opportunity to buy. Trading volume is also high when something significantly positive happens like ETF adoption.
Btw you can also have a look at the long/short ratio, buyers/takers ratio, options and some other information that's provided by exchanges but to be fair, I don't care about that statistics. I always try to look at charts (1 Day, 1 week, 1 month) and always be up to date about the current situation in the crypto world.

Lakai01

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Quote from: Cryptogamist on September 02, 2024, 05:46:35 AM

Increasing trading volume in crypto typically indicates higher market activity, better liquidity, stronger price trends, and more trading opportunities.
[...]

"better liquidity" and "stronger price trends" is not true in my opinion.
A sharp increase in volume may indicate that the assets traded on the exchange (e.g. BTC) are more restricted in terms of availability. This is of course unrealistic for larger coins, but it is certainly relevant for coins with a small total market cap.

Stronger price trends also have nothing to do with this, and may even be the opposite. You only have to look at the extremely high BTH trading activity in the 2017 bull run, where the asset jumped 20% to 30% up and down ... and that within very short time frames.

Bitsgap_traders

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The high volume increases volatility, but you should also take a look at the OI as it affects the coin.

Most of the crypto has a fake volume, which means that market makers use their algorithms to provide liquidity to their clients.

You can use volatility as an indicator that the coin is active in the market. Such fluctuations can be exploited by trading bots, like grid bots, to capitalize on significant price movements.

Additionally, rising volatility in a flat market can signal an impending surge in the coin’s value. For instance, if trading volume jumps from 500k to 1 million while the market remains stable, it could indicate that a substantial price movement is on the horizon.

Start learning this in simple terms and don't overload your trading system. Wink

justdimin

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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?

A lot of people will say it means a lot, and a lot of people will say that it means nothing at all, this is why we can't get a straight answer for any of this. The main reason for this is that people who end up saying it means a lot, are people (traders) who end up using it to determine something, on their calculations the volume is used and that is why for them it means something and they put a lot of emphasis on it, whereas if we end up with traders who do not use the volume at all then they are not going to end up saying it means anything at all, they are not going to care at all.

We should consider this to be an ignorant period and we can't really care about it, we can't make any type of bigger impact on this situation. But over the time, when more people take a similar decision in trading then market will fly. I assume people are getting ready for a bullish year and the reason for gathering is obviously the recent halving.

Cryptogamist

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Increasing trading volume in crypto typically indicates higher market activity, better liquidity, stronger price trends, and more trading opportunities. I get my own notifications on my phone from Xypher.io who provide them and you can filter them how you like. Been trading with the alerts for a good 2 years, its really great once you get the hang of it.

shawonngp

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Quote from: Oshosondy on August 20, 2024, 01:14:48 AM

Quote from: slaman29 on August 20, 2024, 12:24:12 AM

You must be using Binance buddy

I have many exchanges that I am using. I was using Binance. I am still using it but not frequent. I use Bybit more. Sometimes I can use HTX or Kucoin. I have Mexc. I like to explore exchanges and see their differences.

I am fan of binance exchange but i am not limited with one exchange, i am used mostly old exchanges binance,okx,kucoin,gateio,bitget,mexc and bybit but binance is my favorite one of them. Bybit is also especial to me for some reasons like i am using it to participating different events, i am quite to use mexc it's now suspicious for listing shit coins.

Zigabel

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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?

This is such a very rare case, even if it's futures trading or perpetual trading as different exchanges do call it, that percentage is almost not achievable within such period of time, as a matter of fact I've not experienced such in all my years of trading experience which has spammed over three years, addressing your question, yes traders do take advantage of market trading volumes to make more profit as it also helps volatility.

If trading volume spikes within a short period of time, it means there are a good number of traders at that time trading that asset and that will increase volatility on that asset, taking it in ta particular direction exponentially so if you are trading in same direction, you make good money otherwise you loose huge funds.

mirakal

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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?

A higher volume means higher volatility, which is a good chance to earn more profit. And the reason it means a lot to me and to others is because it was very convenient to trade in a particular coin that was moving fast. But of course, manipulated volume is something we need to look at, and it can be a trap. That is why we don't just consider the volume when choosing what coin to trade but also the reputation of the site. Scam projects are very well known for such a strategy, and many traders fall into the situation, making them suffer losses instead of making some. A good way to do this is to not rush and do some research. And most of all, consider some trading tools to improve trading decisions.

slaman29

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Quote from: betswift on August 22, 2024, 03:31:39 AM

Quote from: slaman29 on August 21, 2024, 05:17:30 AM

Agree Binance UI is the worst in the world, and it got even worse as years pass. Too many options. If I was new I wouldn't stay on it.

I hope they will do something with it in the future, though, I don't think they see the need in it being one of the biggest fellas in town Grin

Don't count on them doing it, it's been years since it got cluttered. And it gets MORE confusing every year not less.

You right, they're the biggest fellas but you know, if they're not careful people will leave them. Look at all the big guys like Bittrex that never improved and also got bigger and more confusing. Eventually people left them for other better and more user friendly platforms.

Loyalty is to a point

shinratensei_

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It has the purpose of making people FOMO, because some people think if trading volume is rising, it means there's accumulation going on under the hood as long as the candle didn't already break out, so some people might be attracted to make analysis and see whether they can make entry.
the exchange, got the benefit of increasing the trading volume further, so it's fair game.

but it could also indicate that there's some big price dumping or pumping going on, overall it could means many thing.

armanda90

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Its important side in trading cryptocurrency about increasing of volume transaction exactly in daily day, when opening buy or sell order easily filled if increasing volume transaction and many investor are waiting for buying or selling their cryptocurrency assets.
Have potential for some coins reach higher price when their transaction volume increasing and other side make that coins get many interested from investors for investing.

Increasing transaction volume is one important regulation for some exchange if won't any coins get delisting from their platform, we can remember what happen before on WAVES as top altcoin have delist at Binance after their transaction volume decreasing drastically.
Almost of cryptocurrency coins will give interested offering for investor want trade their coins to increase transaction volume by giving trading contest with very interested reward receiving.

Catenaccio

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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.

The 3061% increase can occur on small exchange not on big exchanges. Trading volume can increase a lot when market has Long squeeze or Short squeeze with forced liquidations but the number of 3061% increase in 15 minutes is impossible on Tier 1 exchanges.

Liquidation for Long and Short positions are there
https://www.coinglass.com/LiquidationData
For Bitcoin only
https://www.coinglass.com/currencies/BTC

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Quote from: slaman29 on August 21, 2024, 05:17:30 AM

Quote from: betswift on August 20, 2024, 01:17:12 AM

Quote from: Oshosondy on August 20, 2024, 01:14:48 AM

I have many exchanges that I am using. I was using Binance. I am still using it but not frequent. I use Bybit more. Sometimes I can use HTX or Kucoin. I have Mexc. I like to explore exchanges and see their differences.

I didn't like Binance for some reason because it was very slow-ish for me and not as UI-friendly as OKX or Bybit. But that's just me, I hope you will find the exchange that will be ideal for you.

Ah sorry for the wrong assumption it was just because you said about the notification, and I thought only Binance did that now it seems all the other exchanges have copied this alert mechanism

Agree Binance UI is the worst in the world, and it got even worse as years pass. Too many options. If I was new I wouldn't stay on it.

I hope they will do something with it in the future, though, I don't think they see the need in it being one of the biggest fellas in town Grin

tygeade

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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?

Having a potential for increase is always a wonderful thing and could be slightly troublesome for people who are not ready and not have the money for it but that's the reality of it. Volume is one of the most important indicators in our business and we need to focus on what we can do, if we are capable of making a good return this should not pose a threat to us at all, it should be something that we can all endure.

After all, we want it to go back up and because of that we try our best to buy as much as we can, and the result is usually as good as we want it to be if we can wait for it. High volume has always helped with the market and usually the result ended up being very good, so this made people realize that they should invest whenever the volume ends up being higher, and that's what they do, they see volume going up and they automatically think that the price will end up going higher as well, that seems like the most logical thing to do.

el kaka22

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I do agree that Binance doesn't have the best UI in the world, and the fact that they are the biggest exchange and never cared about their UI is showing to the world that they do not really care about making it easy for you, they care about their profits and that's it.

Overall, if we keep using it and they are still number one then there isn't really anything we can do about it, we just have to accept that we are not dealing with what they are dealing with. They are still preferred, so they think that UI doesn't matter, if they lost customers and customers that leave say that it is because of the UI then they would have fixed it long ago, but nobody leaves and they stay at the top so they never felt like we want a new UI and never felt threatened by lack of a good one either.

This should be the most important thing, customers need to show companies that they want something better by literally not putting their money in there, that makes them take it seriously. This isn't done for Binance, and because of that they do not make any changes, they take our money and just spend it on whatever they want, and they do not improve the UI or anything else, they just keep it as it is.

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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?

As far as am concerned, this doesn't really mean anything to me and I haven't for once received such a push notification from the exchange that I frequently use for my future trading. When talking about an increase in the trading volume of a pair or asset, it only mean one thing, the total value (money or capital) of every investor of that pair has increased or the pair has had more investors. For example, if the total market capitalisation of that pair was $100 Million and there arises more investors who has started trading the same pair with a huge sum of capital, the market volume of that asset will increase far above $100 million to a new value. The price of the pair may or may not surge, it's never certain that an increase in volume will cause a very huge price change because the price of crypto is already liquid.

slaman29

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Quote from: betswift on August 20, 2024, 01:17:12 AM

Quote from: Oshosondy on August 20, 2024, 01:14:48 AM

I have many exchanges that I am using. I was using Binance. I am still using it but not frequent. I use Bybit more. Sometimes I can use HTX or Kucoin. I have Mexc. I like to explore exchanges and see their differences.

I didn't like Binance for some reason because it was very slow-ish for me and not as UI-friendly as OKX or Bybit. But that's just me, I hope you will find the exchange that will be ideal for you.

Ah sorry for the wrong assumption it was just because you said about the notification, and I thought only Binance did that now it seems all the other exchanges have copied this alert mechanism

Agree Binance UI is the worst in the world, and it got even worse as years pass. Too many options. If I was new I wouldn't stay on it.

betswift

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Quote from: Oshosondy on August 20, 2024, 01:14:48 AM

Thank you all for your replying posts. Since I have been trading, I do not take volume to be important. I noticed that bitcoin price moved up more after the notification even up till now. I can start studying it and see how it would work and make trading better in making profit.

Quote from: slaman29 on August 20, 2024, 12:24:12 AM

You must be using Binance buddy

I have many exchanges that I am using. I was using Binance. I am still using it but not frequent. I use Bybit more. Sometimes I can use HTX or Kucoin. I have Mexc. I like to explore exchanges and see their differences.

I didn't like Binance for some reason because it was very slow-ish for me and not as UI-friendly as OKX or Bybit. But that's just me, I hope you will find the exchange that will be ideal for you.

Oshosondy

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Thank you all for your replying posts. Since I have been trading, I do not take volume to be important. I noticed that bitcoin price moved up more after the notification even up till now. I can start studying it and see how it would work and make trading better in making profit.

Quote from: slaman29 on August 20, 2024, 12:24:12 AM

You must be using Binance buddy

I have many exchanges that I am using. I was using Binance. I am still using it but not frequent. I use Bybit more. Sometimes I can use HTX or Kucoin. I have Mexc. I like to explore exchanges and see their differences.

betswift

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

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.

It's not a - solid as a brick - signal, but it should be considered Grin

Thanks for your and everybody else's replies!

slaman29

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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

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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

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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

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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

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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

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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.

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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

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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

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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? (Read 305 times)