Bitcoin Trading Lesson: Volume
I have been following this trading channel for a while now - We tested the top of the channel on the 8th, and rejected it - Will there be another attempt? We need more information - the only thing on the chart that contains information besides price is volume. Volume tells us how many people are showing up to play. It gives us a measure of the conviction behind moves.
Take a look at the arrows on the bottom of the picture. Historically, when BTC rejected the trendline, but went on to make a second attempt - the rejection was on low volume (green arrows). When the rejection was part of a larger downtrend, it was on high volume (red arrows).
We are seeing a high volume rejection of the trend now. Major supports where there could be a reversal are 6150 and 5000 ish.
A warning is in order - "buying the dip" works until it doesn't - that's why they invented the phrase "don't catch a falling knife. 🔥🔥🔥 If you plan to try and buy these dips, SET STOPS and be ready to bail.
Congratulations @coinstarx! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPCongratulations @coinstarx! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP