Volume as a signal

Volume measures how many participants take part in a move. A breakout that runs on activity well above a typical day carries more weight than a quiet push. Strong trends often continue when pullbacks see muted activity because sellers are not aggressive enough to flip control. This makes simple volume ratios a powerful confirmation tool.

Compare current activity with a rolling average such as twenty sessions and compute a ratio. A value far above one signals conviction while a value well below one shows indifference. Spikes after a quiet base can mark the start of a new leg. Very high activity without progress can also hint at exhaustion as both sides unload size without clear follow through.

Use volume to confirm structure. In healthy uptrends you want rising activity on advances and fading activity on pullbacks. If the pattern flips for a stretch of time the balance of power may be changing. Always pair your read with trend and levels so that you act on context rather than on a single number.

Check live volume ratios in the Crypto tracker →