Volume: what trading volume tells you and what it doesn't

Volume is the sum of trades made in a given time interval, expressed in units of the asset or in the quote currency, for example in dollars. On a chart it usually appears as bars under the candles. Rising volume alongside a price move is sometimes read as greater participation, and low volume as a lack of conviction.

Volume does not show whether buyers or sellers dominate, because every trade has both sides. In crypto, turnover data differs between platforms, and part of it can be inflated by fake trades (wash trading), so treat the numbers with caution. Signals based on volume can be false and do not work on their own: combine them with price and key levels.