Principles for trading cryptocurrencies part 4~/topic/12489/principles-for-trading-cryptocurrencies-part-4/Copyright @ StockSharp Platform LLC 2010 - 20242024-03-29T07:56:32Zhttps://stocksharp.com/images/logo.pnghttps://stocksharp.com/posts/m/51648/In today’s article we will review the significant part of trading analysis – trading volume. Let’s e...2020-09-22T13:21:42Z2020-09-22T13:21:42ZILYAhttps://stocksharp.com/users/127794/info@stocksharp.comIn today’s article we will review the significant part of trading analysis – <b>trading volume</b>.[happy]<br /><br />Let’s explain what trading volume is – <b><em>the whole amount of cryptocurrency units which trade on crypto exchanges that are traded on base of executed orders within considered period</em></b>. Obtaining this volume is important that’s why there’re many charts of trading volume. For example <b><u>the program software for downloading market data</u></b> <a href="https://stocksharp.com/products/hydra/" title="https://stocksharp.com/products/hydra/"><b><em><u>S#.Data(Hydra)</u></em></b></a> easily can build trading charts and trading volume charts, giving the trader to see and compare them in one work space flow. Definitely it will give you a wide picture for further analysis. [wink]<br /><br />For the analysis itself it’s crucial to know the volume indicator that occurs by reaching some fixed price level. Given information is a signal to start a trade or the opposite – to wait. <b><u>Volume chart can be vertical or horizontal, however the first one is more used by traders, </u></b>[nerd]<br />By building the graphs based on download market data in <a href="https://stocksharp.com/products/hydra/" title="https://stocksharp.com/products/hydra/"><b><u><em>Hydra</em></u></b></a> it has the same time period as for <b><em>candlestick chart and displays in the form of bars</em></b>.<br /><br /><a href='https://stocksharp.com/file/116286/download-market-data_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/116286/download-market-data_png/?size=500x500" alt="download-market-data.png" title="download-market-data.png" /></a><br /><br /><a href='https://stocksharp.com/file/116287/tradnig-volume_png/' class='lightview' data-lightview-options="skin: 'mac'" data-lightview-group='mixed'><img src="https://stocksharp.com/file/116287/tradnig-volume_png/?size=500x500" alt="tradnig-volume.png" title="tradnig-volume.png" /></a><br /><br /><br />In short words, if a trader builds a graph by trading volumes over the past 30 minutes then the bar value will indicate the whole cumulative volume of 30 minutes.[ninja]<br />By fact, one of the options using charts is to find the end of correction movement in a trend. <b><em>Thus, if the volume increased dramatically by the price which the direction is opposite to the trend therefore it might indicate the end of the trade itself.</em></b> This moment might be benefits for trade in the direction of a trend and often used for trading robots, particularly in <b><u>a constructor of trading robots</u></b> - <a href="https://stocksharp.com/products/designer/" title="https://stocksharp.com/products/designer/"><b><u><u>S#.Designer</u></u></b></a>. [love]<br />Also, you should keep in mind that a big trading volume of cryptocurrency not always indicates for beneficial price movement the cause of might be set aggressive orders.<br />In any case, if a trader gets an opportunity to use such financial instruments for analysis it will lead to reducing risk and gaining profits! <br />Copyright @ StockSharp Platform LLC 2010 - 2024