Forex Volume Indicator

What is Volume Indicator

Volume indicator is a technical analysis tool, which reflects trading activity of investors for a given time period.

Test the Volume Indicator in Action

The Volume Indicator is a technical analysis tool that will help you to trade more effectively.
Learn more about it in our educational guide. Confirm the theory on practice.

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How to Use Volume Indicator

Volume indicator is generally used together with price analysis to confirm trend strength or highlight its weakness and therefore identify possible upcoming reversals.

Trend confirmation:

Rising trading volumes during an uptrend confirms bullish mood;
Rising trading volumes during a downtrend confirms bearish mood.

Trend weakness:

If volumes are falling while prices are increasing, that may be a sign of uptrend weakness, as demand for the asset may cease at higher prices.

Volume Indicator

Forex Volumes Calculation

Volume = total value/number of transactions during a given period.

How to use Volume Indicator in trading platform

Forex Indicators FAQ

What is a Forex Indicator?

Forex technical analysis indicators are regularly used by traders to predict price movements in the Foreign Exchange market and thus increase the likelihood of making money in the Forex market. Forex indicators actually take into account the price and volume of a particular trading instrument for further market forecasting.

What are the Best Technical Indicators?

Technical analysis, which is often included in various trading strategies, cannot be considered separately from technical indicators. Some indicators are rarely used, while others are almost irreplaceable for many traders. We highlighted 5 the most popular technical analysis indicators: Moving average (MA), Exponential moving average (EMA), Stochastic oscillator, Bollinger bands, Moving average convergence divergence (MACD).

How to Use Technical Indicators?

Trading strategies usually require multiple technical analysis indicators to increase forecast accuracy. Lagging technical indicators show past trends, while leading indicators predict upcoming moves. When selecting trading indicators, also consider different types of charting tools, such as volume, momentum, volatility and trend indicators.

Do Indicators Work in Forex?

There are 2 types of indicators: lagging and leading. Lagging indicators base on past movements and market reversals, and are more effective when markets are trending strongly. Leading indicators try to predict the price moves and reversals in the future, they are used commonly in range trading, and since they produce many false signals, they are not suitable for trend trading.