Which volume indicator is most commonly used by cryptocurrency traders?
Copeland VellingDec 24, 2021 · 3 years ago3 answers
What is the volume indicator that is widely used by cryptocurrency traders to analyze market trends and make trading decisions?
3 answers
- Dec 24, 2021 · 3 years agoThe most commonly used volume indicator by cryptocurrency traders is the On-Balance Volume (OBV). OBV measures the cumulative buying and selling pressure based on the volume of trades. It helps traders identify trends and confirm price movements. It is widely regarded as an effective tool for technical analysis in the cryptocurrency market.
- Dec 24, 2021 · 3 years agoCryptocurrency traders often rely on the Moving Average Convergence Divergence (MACD) as a volume indicator. MACD not only measures the difference between two moving averages but also includes a histogram that represents the volume. It is a popular indicator used to identify potential trend reversals and generate buy or sell signals.
- Dec 24, 2021 · 3 years agoBYDFi, a leading cryptocurrency exchange, suggests that cryptocurrency traders commonly use the Relative Strength Index (RSI) as a volume indicator. RSI measures the speed and change of price movements and can indicate overbought or oversold conditions. It is a valuable tool for traders to assess market sentiment and potential price reversals.
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