Simple Moving Average of Volume

What is the Simple Moving Average of Volume?

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This indicator applies the Simple Moving Average to volume data rather than price. Volume is how many units of a crypto are being traded — essentially, how busy the market is. By averaging volume over a set number of periods, you get a sense of what normal trading activity looks like. When current volume is above the SMA, the market is busier than usual. When below, things are quiet. Volume is often called the fuel behind price moves: big, sustained moves need big volume to keep going.

How Does It Work?

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The bot calculates the SMA on volume data and watches its slope and crossovers. When the SMA slope is positive (volume trending upward), it signals Buy — because growing volume usually supports rising prices. When the slope turns negative (volume declining), it signals Sell.

Using It in BitThor

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Select Simple Moving Average of Volume in your bot config. Use it as a secondary indicator alongside a price-based SMA or EMA. That way your bot requires both price and volume to align before pulling the trigger — a much more confident signal.

Tips for Beginners

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• Volume above its SMA tells you a price move has real market participation behind it — not just a few big trades moving the needle.

• When volume dries up during a price rally (volume falling below its SMA), that's an early warning the rally may be losing conviction.

• Pairs naturally with the price-based SMA for a complete price-and-volume strategy.

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Indicator by: BitThor | Learn more