Reading and interpretation of cryptocurrencies trading in reading charts
As the popularity of cryptocurrencies increases, buyers and investors are increasingly turning to internet platforms and tools for monitoring market trends and making decisions based on information. One of the important aspects of commercial cryptocurrency is the understanding and interpretation of reading and interpretation of trade volume tables. In this article, we spread the amount of crying currency trading and present tips on the effective analysis of these charts.
What is trade?
The amount of trade refers to the total number of transactions at a certain time, usually measured in units such as dollars or coins. It is necessary for buyers to understand market dynamics, because it shows the level of interest and activity in some cryptocurrency. In other words, the amount of trade plays a key role in liquidity and demand.
How to read Maps of commercial volumes
You can effectively read and interpret the maps of rotation volume in accordance with these steps:
Understanding of the diagram type : Different types of diagrams have clear features indicating different market conditions. For example:
* Line diagram: Focus on price changes in time.
* Column diagram: displays closing prices for each belt.
* Candle scheme: displays the highest and lowest prices as well as open and close prices for each day.
Identify commercial quantities : Find changes in the amount of trade that may indicate significant market activities. For example:
* Increased or decreased volume may indicate prices.
* With time, erecting or fall can mean an upcoming growth or fall.
Analyze the context of the chart : Consider the following factors when interpreting the amount of trade:
* Schedule: The amount of trade varies significantly depending on the period. Short -term stores often have large amounts, while long -term stores can see smaller amounts.
* Market conditions: financial indicators such as GDP, inflation and interest can affect commercial volumes.
* Liquidity levels: high liquidity (high volume) or low liquidity (small amount) can affect market dynamics.
4 for example:
* The continuous increase in the number of trade after the original withdrawal may indicate a strong increase.
* The amount of trade has dropped after increasing may refer to repair or turn.
General watching
Growing tides : increased commercial volumes are often rising prices, which indicates the demand and interest on real estate.
Caps
: Reduced commercial volumes may indicate sales pressure or possible division.
Candle -foot patterns : Some candle patterns, such as a hammer or a shooter, may indicate a turn or fracture.
Growing or falling patterns : These patterns show that sellers (bulls) are trying to buy buyers (bears), while bulls (bears) are trying to sell sellers.
Interpretation of trade volume charts
To make conscious decisions, use the following criteria when interpreting the number of transactions:
Quality price : When the price moves on average 20 sections of the average sliding and trade amount, this may indicate potential release.
2.
Trade trends : Find coherent trade trends that can control decision making.
application
Reading and interpreting trade volume charts is an important skill for buyers to control cryptocurrency.