- Sudden spikes or drops in trading volume can indicate changing investor interest or reaction to news or developments. Consistently high volume suggests sustained interest, while low or declining volume might imply waning investor enthusiasm.
- Analyze volume changes in conjunction with price movements and market news. Significant volume increases coupled with positive price action can signal strong buying interest, whereas high volume with declining prices might indicate selling pressure.
How can changes in trading volume impact my perception of a project's market activity?
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