Which volume indicator is recommended for tracking trading activity in the cryptocurrency market?

3 answers

• Abrahamsen WestergaardFeb 26, 2024 · 2 years ago
  One recommended volume indicator for tracking trading activity in the cryptocurrency market is the On-Balance Volume (OBV) indicator. OBV takes into account the volume of trades and whether the price closes higher or lower than the previous close. It is commonly used to identify trends and confirm price movements. By analyzing OBV, traders can gain insights into the strength of buying and selling pressure in the market, helping them make informed trading decisions.
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• Shridhar PandeyMay 06, 2025 · 9 months ago
  When it comes to tracking trading activity in the cryptocurrency market, the Money Flow Index (MFI) is a popular volume indicator. MFI combines price and volume data to measure the buying and selling pressure in the market. It is particularly useful for identifying overbought and oversold conditions, as well as potential trend reversals. Traders can use MFI to confirm price movements and make more accurate trading decisions.
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• Turko DurgoApr 25, 2022 · 4 years ago
  BYDFi, a leading cryptocurrency exchange, recommends using the Volume Weighted Average Price (VWAP) indicator for tracking trading activity. VWAP calculates the average price weighted by volume over a given period of time. It is commonly used by institutional traders to assess the fair value of an asset and identify potential entry and exit points. By tracking VWAP, traders can gain insights into the overall market sentiment and make more informed trading decisions.
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