Volume, Liquidity, and Reaction – Price Mechanism
Volume is a way to observe the raw price activity in the market. It is the first thing to look out for before searching for money or liquidity.
For example, if I want to sell or buy something, I would rather go to a place where there are plenty of people who can potentially buy it, or to a place where the item is sold in bulk. That’s volume.
Liquidity: Topic for another day.
Reaction: refers to how the price behaves around your levels. Is the price reacting to your level?
Volume is a way to observe the raw price activity in the market. It is the first thing to look out for before searching for money or liquidity.
For example, if I want to sell or buy something, I would rather go to a place where there are plenty of people who can potentially buy it, or to a place where the item is sold in bulk. That’s volume.
Liquidity: Topic for another day.
Reaction: refers to how the price behaves around your levels. Is the price reacting to your level?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.