← Glossary · Indicator
Volume
The number of units (coins or contracts) traded in a given period — a direct measure of market participation.
What it is
Volume tells you HOW MANY people agreed with the price move, not just that it happened. A 5% rally on tiny volume is weak; a 2% rally on 3× average volume is strong. The rule of thumb: 'price needs volume to be believed'. Volume confirms trends — rising prices on rising volume = healthy uptrend. Rising prices on FALLING volume = warning sign, the trend is running out of fuel. Volume spikes often mark turning points: capitulation lows (panic selling) and exhaustion tops (FOMO buying).
Example
DOGE rallies 8% over a day but on 40% LOWER volume than its 30-day average — a warning sign. Three days later DOGE retraces the entire move. Compare to BTC's $70K → $76K rally that came with 3× average volume — that move held.
How Indikora uses Volume
Indikora's Volume Spike Scanner is one of the bot's edge-finders: it flags tokens whose last-hour volume is 2×+ the 10-hour baseline with price up 1.5%+.
Related terms
- Breakout — A decisive close beyond a key support, resistance, or consolidation pattern — usually with volume confirmation.
- Volatility — The magnitude of price swings over time — high volatility means bigger and faster moves.