What this helps answer
Is the BTC move happening on elevated volume?
Indicators
Volume Ratio and Volume Spikes
Volume ratio compares the latest candle volume with a recent volume average to show whether participation is elevated.
Why it matters
This concept is part of live backend analysis and is used to explain market context, not to produce standalone buy or sell instructions.
Related concepts
OBV, Support and Resistance, Market Structure
How it is used in NotifyTrader
NotifyTrader computes a 20 period volume average and current volume ratio. The news/analysis pipeline also uses volume spike context in chart snapshots.
What volume ratio tells you
A volume ratio above 1 means current volume is above the recent average. A ratio below 1 means current volume is below the recent average.
Elevated volume can make breakouts, breakdowns, and volatility shifts more meaningful, but it does not define direction by itself.
Why it matters
Low-volume moves can be easier to fade or reverse. Higher-volume moves can indicate broader participation.
In crypto, volume spikes often appear around news, liquidation events, breakout attempts, or market-wide risk shifts.
How NotifyTrader uses it
The backend stores volumeMA and volumeRatio in analysis snapshots. Assistant answers can use those values to explain whether a move has participation.
Volume context is especially useful with market structure, support and resistance, and Bollinger expansion.
Questions to ask the assistant
- Is the BTC move happening on elevated volume?
- Which watchlist symbols have unusual volume?
- Does volume confirm the breakout attempt?
FAQ
Does high volume mean price will continue?
No. It means participation is elevated, but direction still depends on structure and follow-through.
Why compare volume to an average?
Raw volume is hard to interpret without a baseline.