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The volume of trades carried out is a robust indicator to protect the investor from sudden fluctuations. By observing the traded volumes, the investor can quickly analyze the risk of entering or exiting the position.In addition, for the medium and long term, it allows choosing a favorable moment to purchase the asset. The logic is simple: the greater the trading volume, the lesser the chance of abrupt fluctuations when ordering to buy or sell the asset in that position.It is also able to provide the degree of agitation for seeking donations, whether by buying or selling.Of course, other indications are necessary, however, the trading volume allows us to intuit the speed of increase in the asset's value, which means a high demand for purchase of the asset and a decrease in value, when many people make sales at the same time.Hence the name "volume" of business.The graph, in fact, makes a difference between purchases and sales. If the balance is positive, it has valued, if the balance is negative, it has devalued. That is, more people buying or more people selling.And that's the point: investors' interest in buying or selling the asset, at that moment, in large quantities, determines the degree of fluctuations throughout the day.The swings of the day determine the average swing of the month, and so on.Therefore, two items are important: investors and investment period.Investment period, that is, are the temporal, motivational, environmental and factual factors that motivate investors to buy or sell. In short: jumping out of the position to gain an advantage or reduce losses or enter the position to rebuild the portfolio or make gains.External factors, even in cryptocurrencies, mean that what happens in the world makes investors migrate money from one point to another in the financial market as a whole, depending on the investor's profile (more aggressive or conservative).The financial volume available to be traded does not disappear, does not evaporate, is not destroyed: it only changes address, interest or global vision.In the last two weeks, uncertainties in oil commodities: whether due to wars, or due to uncertainties in demand, or because the European Union will ban oil-based cars as of 2035, has made the price drop a lot and there is a massive flight of capital.As the dollar and the euro are linked, in part, to these commodities and with the political instability in the Eurozone, which would find itself free from the pandemic to take advantage of the European summer, there were also those who removed their values ??from these two currencies.As a result, part migrated to gold, silver, copper, aluminum and silicon, in addition to food commodities.However, the total volume does not reach half of what was seen of the escape.In other words, the other half is looking for places to invest.This is in line with the low price of bitcoin and ethereum.In addition, Chinese GDP was 1% lower than expected, which means that the real economy will take longer to rwagir from the pandemic.Cryptocurrencies, therefore, are attractive for their greater stability and security at this point.The financial volume migration lost by bitcoin in May is also expected to return.Thus, keeping an eye on the financial volume is an indication of when there will be a resumption of cryptocurrency appreciation!Of course, what is needed are other support tools like RSI, MACD and moving averages, for example.Good observation exercise everyone!
