Trading Volume: A Key Indicator Of Market Activity

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In the world of cryptocurrencies, trading is often misunderstood as a reflection of market emotions. However, it’s much more. The amount of trading, especially its absolute and relative values, is one of the most critical indicators in the cryptocurrency market. Internal-

What is trading?

Trading is the total amount of coins or cuffs over a period of time, usually 24 hours. The total number of shops in that schedule. In other words, it is a snapshot how many times the property was bought and sold within a certain day.

Why is trading important?

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• Risk Management

  : The amount of trading helps merchants manage the risk by providing a benchmark for potential losses. If the merchant sells at an increased price (due to a large amount) but then buy back at a cheaper one, they can minimize any losses.

• Market Feelings : A decrease in trading may indicate a decreasing market opinion as buyers can reduce operations.

Trading Types

• Absolute volume :

• Relative volume (rv) ratio : higher ratio of motorhomes indicates increased trading activity.

The main guarantees of trading amount

• Market volatility does not affect the amount: :

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Best Practices to use the quantity of trading

• Set the Basic Value

  : The establishment of a benchmark for your trading system by following the historical trading volume of the property you are interested in.

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conclusion

Cryptocurrency market and information -based decisions about buying and selling property. By following absolute and relative trading, merchants, investors and analysts can be valuable views on market feelings, trends and risk management strategies. As cryptocurrency

Other resources

• CoinmarketCap: A comprehensive database of cryptocurrency prices and trading.

• Cryptocompare: Real -time provides market information, including trading quantities for different assets.

• TradingView: offers a range of technical indicators, including trading.