Yes volume represents traders activity. It's a key indicator which in normal conditions should follow the price action. If price dips on low volume, you have a divergence. Same if price rise up quickly without volume. Check this cheatsheet from @CryptOrca https://twitter.com/CryptOrca/status/949567081007206401 …https://twitter.com/crypto_cali/status/951113612424130561 …
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Replying to @cryptowilson @CryptOrca
Great info, thanks! May I ask: if price action rises/sinks on a divergence, what does it mean for that particular market move?
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Replying to @mrdavidsanz @CryptOrca
This is how I understand this anomaly: Price rises on no volume meaning no liquidity on the market, scarcity produced by whales who have beforehand accumulate a lot. Price sinks on no volume: fomo buyers have driven the price up before the fall and nobody is really selling.
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Replying to @cryptowilson @CryptOrca
In the part about "Price sinks on no volume", you mean nobody is really buying, right? Otherwise I don´t get it. Why would price action sink if nobody sells?
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when buy orders get pulled void is created, candle will paint steep dive.
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