What is the best volume indicator for crypto?

Cryptocurrency trading relies heavily on technical analysis, which incorporates various tools to assess market trends and predict future movements. Among these, indicators that measure volume play a crucial role in informing traders' decisions.

One of the most widely used volume indicators is On Balance Volume (OBV). It correlates price changes with volume flow, suggesting whether the buying or selling pressure is stronger. By tracking OBV, traders can gain insights into the momentum behind a trend.

Another important volume-based tool is the Accumulation/Distribution Line (ADL). This indicator attempts to determine whether large traders, also known as smart money, are accumulating or distributing a security. An uptrend in ADL indicates that institutional investors are buying, potentially signaling a bullish market.

Money Flow Index (MFI) is another valuable tool that incorporates both price and volume data. It measures the money flow into and out of a security over a specified period, helping traders identify overbought or oversold conditions. MFI values above 80 may indicate a potential sell-off, while values below 20 may signal a buying opportunity.

Chaikin Oscillator is a momentum oscillator that combines two moving averages of the Accumulation/Distribution Line. It highlights potential turning points in the market by identifying divergences between price and volume accumulation. Traders use the oscillator to anticipate reversals in the trend.