// Definition
Average volume is the typical amount traded over a recent number of candles, used as a baseline to judge whether current volume is high or low.
Explained simply
Many charts can draw a moving average line over the volume bars. Bars above that line show above-normal activity; bars below it show quiet trading.
This matters because the same volume number can be high for one coin and tiny for another. Comparing with the average makes volume readable on any market.
Tip
Signals that form on below-average volume, such as on quiet weekends, deserve extra caution.
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For education only, not financial advice. Trading is risky and you can lose money.