Believing that volume analysis is the key to making money on the exchange easily and quickly is a mistake and can lead to falling victim to an illusion.
A trader who studies trading volumes using footprint charts, etc., increases the amount of important information available for analysis. But at the same time, the number of options for its interpretation also increases due to numerous probabilities:
- the price can go up or down;
- the price can move on high and low volumes;
- volumes can represent buys and sells;
- buying and selling can represent totally different motives for professional traders and the mass of retail traders.
To draw more accurate conclusions when analyzing volumes, we recommend not focusing on individual patterns but always keeping in mind the overall picture of the market.
It is also useful to practice volume interpretation skills using the Market Replay functionality available in the ATAS platform.
Download Free Trial ATAS. It is free. During the free trial, you will get full access to the platform’s instruments and will be able to appreciate all their benefits in order to make a purchase decision. Moreover, you will be able to continue using the program even after the 14-day trial period is over, but only for cryptocurrency trading.
The ATAS platform:
- allows you to download tick history from the futures, stocks and crypto markets so that you can get a detailed picture of the market;
- offers many benefits for traders who want to combine bounce trading with easy-to-use cluster charts and useful indicators.
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