Trading volume answers "how much has happened," not "can it be successfully traded"

Trading volume is an important record of market activity, but it cannot independently indicate the quality of quotes at a given moment. Two trading venues may display similar trading volumes, yet due to differences in bid-ask spreads, order book shapes, and individual trade sizes, they can present very different market conditions.

Price spreads provide cost clues

The distance between the buy price and sell price can help readers understand the tightness of visible quotes. Attention should be paid to the corresponding asset version, quote currency, sampling time, and calculation method. A wider spread is a phenomenon that requires further observation and should not be directly equated with a risk conclusion.

Depth indicates how much visible demand the order book can absorb

Order book depth is usually calculated around a certain price range. When reading depth, one should also confirm the range, currency, update time, and whether only part of the orders is displayed. It describes the visible order book, not the total available liquidity in the market.

Use the same standard to look multiple times, rather than providing a universal threshold

Instead of giving a "good or bad" standard applicable to all assets, it is more reliable to track changes under the same asset, within the same price range and a similar time frame. This allows for the discovery of whether there has been a verifiable change in market conditions.

Conclusion

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