Recently, new traders have been asking me what trading volume means, so I decided to write down my understanding. Simply put, Vol is the trading volume, which is the total number of tokens traded within a certain period (usually 24 hours). This indicator seems simple, but it is truly the key to judging market trends.

My personal experience is that no matter how much the price rises, if there is no trading volume support, the rally can easily reverse. Conversely, if the trading volume is very low, the market feels like it has no activity, and price fluctuations become chaotic, making it hard to make judgments.

What does high or low trading volume represent? When trading volume increases, it indicates high participation from traders, which means either a trend is starting or a reversal is happening; basically, something important is occurring in the market. But if trading volume remains very low, you need to be cautious, as price movements in such conditions are often unreliable, and investors may be waiting on the sidelines, unwilling to commit.

My most common approach is to look at trading volume together with other indicators. For example, combined with RSI—when trading volume rises and RSI values are high, it generally confirms that the market is in a strong trend, whether up or down. With MACD, when the MACD line and signal line cross while trading volume is also increasing, it’s usually a good signal, indicating that the price movement has real strength.

In practical trading, these are the key points I rely on. First, use high trading volume to confirm the trend. If the price is rising and volume is also high, this upward trend has market support and isn’t fake. Second, pay attention to trading volume during price pullbacks. If volume is very low during a correction, it indicates just a pause, not a reversal, and the price may continue to rise soon.

In summary, trading volume is a market popularity indicator. To truly understand what the market is doing, trading volume is an essential tool. When combined with RSI, MACD, and other indicators, it helps clarify the trend. When I check the market on Gate, I always start by looking at the trading volume to confirm whether the trend is real. This habit has helped me avoid many false breakouts.