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Is volume completely reliable?

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I learned about volumes here on cryptotalk, most things i know about crypto actually, I know with enough volume a coin is reliable for trading without delays and troubles. However today something crossed my mind, if a coin does have good volume, but it is suddenly dropping/dumping so traders refuses to buy would the volume still save the holders to sell on time?

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Volume is a an idicator to determine the demands on the market,there are just instances that even the volume is low the price increase and even the volume is high the price decrease,basically,it still depend on how much one trader sell their coin. If more people sell it at low price it will result to price decrease.

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The large volume of trading in the currency is evidence that it is a strong and reliable currency, and for this there is no risk in trading through it, but there are some traps that some currencies use to make a large pumping and then a dump


THINK POSITIVE

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3 hours ago, bentayebsalah said:

The large volume of trading in the currency is evidence that it is a strong and reliable currency, and for this there is no risk in trading through it, but there are some traps that some currencies use to make a large pumping and then a dump

If we notice the classic currencies, we will find that the volume of trading in them is large and this makes them strong and well reliable currencies


 

Life is great and enjoy it

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Volumes used to be a good indicator, although sometime in the end of 2017 every exchange begun pumping their numbers and providing completely fake volume data. They did that to look like they were active exchanges but instead they just made volumes being completely irrelevant as to trade and to choose an exchange. Basically the top 10 exchanges in volumes are 99,99% fake.

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The volume is most important t trade any coins there is many exchange if the coin dont have more than 5 it coins daily trading they dont listed in her exchange to avoid pump and dump so we can see it's important 

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Yes, trading volume is very important for the reliability of a coin, but make sure to check the volume over a couple of days or weeks, cause there may be a pump for a dead coin and can trick you into thinking it's a good coin


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Because traders understand that the price of a coin can fall even lower and then if they buy a coin they will immediately suffer losses. This is often the case with coins with large volumes

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Volumes means how much coins are buying and sale at particular time . In High volumes , there are lots of buyers and sellers . Price of coins are dropping at high volume also . What is psychology of people on that coins can determine coins price is going up or down .

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I don't think so according to me i think it depends upon the coin in which you are dealing because there are also some coins which starts dumping and keep on reducing its value so at that time coins volume will not matter users will see the profit and loss occurred by such coins.

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Because sometimes after a fall, some coins can fall even lower in price, and good traders know this and do not buy a coin at this time, and the volume can be inflated

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The volume is a sign that a particular coin is traded often and has relatively good liquidity but it is not everything. A high volume with low capitalization is not a proper combination. Some shit coins may have high volumes at first but they fall soon because they have weak market caps (which means a few people have invested in them). Some volume data may be fake in some platforms. Be sure to choose coins based on real data. If you are afraid of price falls, only trade with top rank coins that are always listed above the others.

Edited by Brushless4500KV
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2 hours ago, MCSGlegend said:

Because sometimes after a fall, some coins can fall even lower in price, and good traders know this and do not buy a coin at this time, and the volume can be inflated

That is why to know about the coin you want to trade, I is also good to be patient, I have noticed what you said too but i like to use halve of my coins, and later if it falls again, I will buy again. But, the previous time I bought the coin, the price will still rise more than it and gain very well. But, that is why to study the coin technically very well is very good. 

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In my opinion, in trading the trading volume of a coin is very important, because it shows that the coin is selling well in the market so that this coin has a good chance in the future. If there is a decline in the price of a coin with a high volume is reasonable because fluctuations in the price of a coin are normal, it is good for investment.

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Dumping or lifting affects how you personally treat such events. That is, you should always ask yourself, as you did, "will it be dangerous for me, for my funds, for my future actions?". That is, you can not get hung up on the market as a whole, since each situation is individual, and you must first answer for yourself.In General, I think that volumes in this case will play the least role for you.

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I think the volume is important but the value of the currency is more important, because even if it has good volume but if the price is on the ground, the transaction will not be good for us, obviously there are many values that must be taken into account.

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This depends on the strength of the buying support, but often the buyers do not hold together if the selling pressure is severe because they find the opportunity to buy at lower prices, so they are in no hurry to get their profit.

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In the cryptocurrency market, looking at trading volume is a natural step after looking at the price because it can reveal all kinds of useful information, as large volumes in the volume indicator indicate higher interest levels and a greater number of participants, and this helps in knowing how strong the price movement is.

Edited by SuperCrypto

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Volume is an important indicator in technical analysis, as it measures the relative value of the market movement. If the market makes a strong price movement, the strength of this movement depends on the trading volume of this period, the higher the trading volume during the price move, the more magnificent the price movement will be.

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The currencies that have a large trading volume are safer than the rest of the currencies because you can certainly buy and sell from this currency at any time, and for the analysis of volume, it gives very good results for currencies in which the trading volume is good, but I do not rely on it.

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The value of the currency is important even though the volume is also important checking the volume from time to time is important too  but we can't just ignore the value of the currency.

In trading  reliability is not sure for beginners even experts.

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    • Сенатор США Синтия Ламмис недавно опубликовала на X сообщение «Биткойн-лазерные глаза», демонстрируя свою поддержку законов, поддерживающих криптовалюту. Этот шаг последовал за принятием закона HJRes. 109 в Сенате, целью которого является отмена Бюллетеня по бухгалтерскому учету персонала (SAB) № 121 Комиссии по ценным бумагам и биржам (SEC).   Сенатор США Синтия Ламмис, представляющая Вайоминг, хорошо известна своей защитой биткойнов. Она рассматривает актив как надежное средство сбережения и защиту от инфляции. Работая в Банковском комитете Сената, она стремится обеспечить соблюдение нормативной базы, которая способствует развитию криптовалютных инноваций и одновременно защищает потребителей.                    Сенат недавно принял закон, направленный на ликвидацию SAB 121, который налагает строгие ограничения на финансовые учреждения, не позволяя им выступать в качестве хранителей цифровых активов, таких как Биткойн. В соответствии с Законом о пересмотре Конгресса, HJRes. 109 направлен на устранение этих барьеров, позволяя регулируемым финансовым фирмам предоставлять депозитарные услуги для криптовалют.   Перед принятием закона сенатор Ламмис заявила о своей поддержке отмены SAB 121. Она осудила его, как правило, замаскированного под руководство по бухгалтерскому учету, разработанное и реализованное сотрудниками SEC без одобрения большинства комиссии. Недавно сенатор Ламмис вместе с сенатором Роном Уайденом от штата Орегон написали письмо генеральному прокурору США Меррику Гарланду, в котором выразили обеспокоенность по поводу предполагаемого расхождения в интерпретации Министерством юстиции правил «перевода денег». Они утверждали, что это отклонение от установленного определения FinCEN может криминализировать фундаментальные аспекты криптосетей, что повлияет на ответственные финансовые инновации в США. Белый дом выразил обеспокоенность по поводу защиты инвесторов Между тем Белый дом четко заявил о своем несогласии с принятым законом. В недавнем заявлении указывалось, что президент Байден наложит вето на законопроект, если он попадет к нему на стол. Он мог бы утверждать , что отмена SAB 121 подорвет усилия SEC по защите инвесторов на рынках криптоактивов и защите финансовой системы в целом.   Критики SAB 121 считают, что это правило является чрезмерным и ограничивает возможности финансовых учреждений удовлетворить растущий спрос на услуги биткойнов. Они утверждают, что эти учреждения с их установленными механизмами соответствия и протоколами безопасности хорошо оснащены для управления рисками, связанными с хранением цифровых активов. Несмотря на одобрение Сената, будущее HJRes. 109 остается неопределенным из-за потенциального президентского вето.   Если президент Байден выполнит свое обещание вето, это остановит прогресс резолюции, сохранив текущие ограничения на хранение цифровых активов финансовыми учреждениями. У Байдена есть возможность подписать законопроект, наложить вето или не предпринимать никаких действий, и в этом случае законопроект станет законом без его подписи.
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