Volume is the total number of shares or contracts traded on any given asset.
The volume of trade is the total number of shares and contracts exchanged between buyers and sellers, during the trading session on any time frame.
Volume indicates the amount of liquidity in a market.
Liquidity is important, high trade volume means greater liquidity, and greater liquidity provides you with better execution on your trades.
Volume is essential for confirming a trend, reversal, and breakouts.
Inexperienced traders will rarely think to consider volume.
Remember, the market is made up of buyers and sellers, use volume to identify other players in the game.
Time Stamps
5:00 – ADA Previous COTW (DO NOT TRADE THIS)
- A good example of WYCKOFF
16:30 – VOLUME
- Lead analysts prefer to trade coins with 200+ 24H BTC volume (even better 24H change + 24H volume)
- Liquidity is extremely important without it you lose money
- Volume is a great tool to confirm a trend
- Spread is a difference between buying and selling (for instance buy bid is 25$, sell ask is 26$ – spread is 1$). You do not want to trade something with a big spread because it means liquidity is low = you will lose money
- Slippage = when something drops quickly and there is low liquidity you, for instance, have SL set at 5% but you get filled at 25%. Your loss is very big = rekt.
- Daniel has volume MA set on 30 on TV. It means that it takes last 30 periods (on 1D TF it takes 30 days, on 1H TF it takes 30 hours)
54:06 – EXAMPLES
- A very good example on BTC.
- Sell volume on retrace was higher than the biggest bull volume in the uptrend = reversal
- Also, MS broke in this case = amazing short opportunity
1:00:40 – Q&A
1:15:49 – BTC TA