Investors are using the most transaction volume indicator.
Market analysis is important for crypto money investors to create their own style. Investors can either succeed or fail according to their style.
Investors are using some indicators widely. Of course, it is necessary to take into account many indicators and analyze to provide the nearest price forecasts. Coindesk asked his followers the question hang Which one would you use if you only have to use an indicator?The results of the survey were as follows: 39% of the participants selected the transaction volume, 23% chose moving average (MA) and 30% chose RSI.
Coinigy business development and operations officer Matt Thompson said that the indicator of the transaction volume is not given. He added that the transaction volume could be used as an instrument of approval or rejection for other indicators.
The transaction volume reflects the total amount of hands that have changed over a period of time and is usually indicated by bar graphs. Professional traders and graphic designers benefit greatly from the transaction volume. For example, if the price decrease and the transaction volume decrease at the same time, this usually means that the bears are tired and the recovery is close. On the contrary, if the transaction volume decreases as the price increases, it is foreseen that the price will not remain above or the resistance points are evaluated.
As with any vehicle, the transaction volume has some disadvantages. For example, volume indicators on crypto money exchanges may not show real values. The transaction volume can be fake (wash trading), for this, investors place orders and cancel without ordering orders. In the past, some exchanges were deliberately caught for making illusory transactions, so volume can be used for manipulation.
Some argue that Bitcoin cannot be manipulated because it has a lot of liquidity compared to others. Nevertheless, past analyzes approved by the transaction volume can be important. A cryptocurrency can be seen with changes in trading volume where interest is increasing. In addition, volume increases and decreases can give an idea about the changes in trends.