What are the advantages and disadvantages of using the relative volume indicator on Thinkorswim for analyzing the volume of cryptocurrencies?

3 answers

• Mar 22, 2022 · 3 years ago
  The relative volume indicator on Thinkorswim can provide valuable insights into the volume of cryptocurrencies. By comparing the current volume to the average volume over a specific period, traders can identify whether the current volume is higher or lower than usual. This can help in determining the strength of a price movement and potential trend reversals. However, it's important to note that the relative volume indicator alone may not be sufficient for making trading decisions. It should be used in conjunction with other technical indicators and analysis tools for a comprehensive view of the market.
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• Mar 22, 2022 · 3 years ago
  Using the relative volume indicator on Thinkorswim for analyzing the volume of cryptocurrencies has its advantages and disadvantages. On the positive side, it allows traders to gauge the level of interest and participation in a particular cryptocurrency. This can be helpful in identifying potential breakouts or reversals. However, it's important to be cautious as the relative volume indicator may not always accurately reflect the true volume of cryptocurrencies due to factors such as wash trading or manipulation. Traders should consider using other volume indicators and conducting thorough research before making trading decisions based solely on the relative volume indicator.
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• Mar 22, 2022 · 3 years ago
  When it comes to analyzing the volume of cryptocurrencies using the relative volume indicator on Thinkorswim, there are both pros and cons. On the one hand, the relative volume indicator can provide a quick and easy way to assess the strength of buying or selling pressure in the market. This can be useful for identifying potential entry or exit points. On the other hand, the relative volume indicator may not always be reliable, especially in the case of low liquidity cryptocurrencies where volume data can be easily manipulated. Traders should use the relative volume indicator as a supplementary tool and consider other factors such as price action and market sentiment for a more comprehensive analysis.
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