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I'Ve been watching the charts for years and I still

haven't figured out why or how this phenomenon works... I'm hoping someone can help me understand, if volume is the amount traded during a certain timeframe, how is it that in one instance of a bullish trend, of over 9K being sold can drop the price around 8%, but the same amount in another instance of a bullish trend drops it less than 1%? There's a key factor here I am missing that allows this to make sense to me...

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HEX contract address: 0x2b591e99afe9f32eaa6214f7b7629768c40eeb39 8 decimals.

The formula is x * y = k, where x is the amount of one token in the liquidity pool, y is the amount of the other token, and k is a fixed constant.

You are missing the understanding of market liquidity, the most important market parameter besides price. Volume is the least relevant market parameter as it has no direct impact on price.

Blake-Hutchinson Автор вопроса
Exaptation
The formula is x * y = k, where x is the amount of...

Oh... So if 9K is the volume on a 8% drop, then it's likely it was something like a ratio of 8K sold to 1K bought in that timeframe, and where 9K is volume on a less than 1% drop, it could be that only 1K was sold and 8K was bought?

Blake-Hutchinson Автор вопроса
Nenad [I won't dm you]
You are missing the understanding of market liquid...

Yeah, I'm more referring to the TA aspect for trend reversal that you had mentioned earlier... I think it was you... Lol!

Blake Hutchinson
Yeah, I'm more referring to the TA aspect for tren...

It is only market parameters that are related to market performance. The market indicators are instead just indicators and only affect the markets via collective psychology, kind of like astrology. The price trend vs. volume trend is an indicator, not a parameter.

Blake-Hutchinson Автор вопроса
Nenad [I won't dm you]
It is only market parameters that are related to m...

Yeah I remember learning about that... That there are whole schools of thought around each indicator, so much so that in a casual market during accumulation times, they become self fulfilling prophecies due to all the different strategies being traded by like minded people...

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