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Volume

Average Volume

Also called: Volume moving average

// 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.

EP 06: Volume: Real Moves vs Weak Moves Learn it on a real chart · EP 06Volume: Real Moves vs Weak MovesWatch the free lesson →

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