Bitcoin Trading Lesson: Volume

in #cryptocurrency7 years ago

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.111117.jpg

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