Recently, while watching the market, I noticed that many beginners can't clearly understand what Vol (trading volume) actually means. In fact, it's a very important but easily overlooked indicator.



Simply put, trading volume measures how many tokens are traded within a certain period of time (usually 24 hours). This number can tell you how active the market is and how many people are driving the price movements behind the scenes. High trading volume usually indicates high market participation, while low trading volume suggests a lack of consensus.

From my own trading experience, just looking at price increases and decreases can be very misleading. But if the price rises while trading volume also increases, that’s more reliable — it shows that real buyers are involved, not just a false rally. Conversely, if the price pulls back but trading volume is very small, it might just be a short-term correction, not necessarily a trend reversal.

The most practical way to use it is to combine Vol with other indicators. For example, when RSI readings are high and trading volume is also rising, it often signals a strong trend; or when the MACD signal line and price break through together, along with increasing trading volume, that’s a clearer signal.

My advice is, when confirming a trend, always look at trading volume. If the price is moving in one direction with high volume, it’s like a vote from the market, indicating genuine demand for that direction. On the other hand, if the price moves up or down with sluggish volume, be cautious — it could be a false breakout. So next time you watch the market, remember to give this Vol indicator an important position; it can help you filter out a lot of noise.
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