🔔 Latest details on Bitcoin trading volume distribution map By the way, could you please share some common knowledge about the trading volume indicator VOL According to the VDchart indicator, as shown in the four hour level of Bitcoin chart, in the entire upward trend displayed by VP1, the overall buying volume (when the green delta below VP1 is green) is greater than the selling volume, achieving a synchronous upward trend of volume and price 🤔 But starting from VP2, we found that the overall selling volume is greater than the buying volume (when the delta below VP is red), so there is a problem! Why is the price still rising? 📚 Taking this opportunity to popularize the use of the Vol trading volume indicator, we first use the Vol trading volume statistical indicator in our daily lives, which only distinguishes colors based on the closing price of the K-line: if the current K-line closes at the top, draw a green bar to close at the bottom, and draw a red bar So it doesn't necessarily mean 'more buying or selling' The truth is: what you see as' selling more '≠ the price will definitely fall Here we need to distinguish two key points: 🔴 1. Trading volume is not direction, but 'counterparty trading' Every transaction must be completed by both the buyer and seller, and cannot be unilaterally 'buy only' or 'sell only' So: trading volume is the result of the joint action of both buyers and sellers What you see as' high selling volume 'is actually' active selling volume ', which means that someone is more proactive in' smashing the market ', but still needs someone to buy these sell orders in order to complete them! 👉🏼 The price has not dropped, indicating that these proactive sellers have been taken over, and the buyers are even willing to raise the price to buy more! 🔴 2. Proactive selling often ≠ Main players wanting to smash the market There are many selling orders and prices are still rising, indicating that someone below is a foodie (possibly the main force) The pressure to actively sell is high, but the price still rises, which is a manifestation of "selling pressure absorption" This is actually a signal of a 'strong upward trend' structure 🔛 Now that we are returning to the chart below, it is not difficult to understand why the overall selling volume of VP2 is greater than the buying volume, and why the price is still rising. This is because there have always been accepting orders below, willing to accept or even buy more at a high price. Usually, this is a manifestation of the main force attracting funds So when we look at the overall trading volume of VP3 to VP4, it clearly corresponds to the price performance. When the overall selling volume is greater than the buying volume, it shows the same price performance This also represents a high possibility of the downward trend continuing In summary, it is: Large selling volume: The main force of price increase attracting funds and strong absorption may be a precursor to a strong upward trend Large buying volume: If the price does not rise and the selling pressure is high, it may be a false pull or a lure to buy more Large selling volume: normal price drop, structural decline, high possibility of continuation of downward trend The core driving force behind price increases is not simply 'the amount of buying funds is greater than the amount of selling funds' But rather: "The buyer is willing to continue to transact at a higher price, while the seller cannot suppress the price Simply put, prices are "raised", not "naturally rising after buying too much" The core of price fluctuations: Price increase ≈ active buying intensity>liquidity of sell orders above Price decline ≈ active sell order intensity>buy liquidity below So do you understand? The rise and fall of prices is not as simple as people imagine, even if it is a basic indicator, many people still don't know how to use it Let's take a look at the VDchart chart again. The core POC of this upward trend is still at 103.4K, which can be used as an important buying and selling point based on this indicator to develop a reasonable trading plan This indicator was personally drawn by me and is now free and open-source https://(x.com)/PPai_Crypto/status/1930172922892615823 In addition, in a few days, I will share a new indicator that can achieve a real comparison of the volume of active buying and selling orders. This will be more intuitive than VOL to see who is actively "pushing the price" during a period of active buying and selling orders. Actually, it is similar to the current VDchart indicator, which calculates delta, that is, the difference in trading volume. However, it will be more intuitive and simpler to use than VDchart, and its functions are more limited and suitable for beginners compared to VDchart Still not too much demand, give me a thumbs up 👍🏻 If the response is good, I will continue to open source and share it, and attach a detailed usage guide!