In the currency market, forex volume indicator plays an important role and carries a lot of information. By means of active bidders in a certain period of time. Simply put, the volume is the number of transactions in certain financial assets (currency, stocks) within the indicated period (minute, 5 minute, hour, day).

Volume Indicator Forex displayed in a plurality of histograms having varying heights, which shows the volume level. Under each candle or a bar is the corresponding histogram volume. For example, if we set a timeframe for five minutes, then the price will be a candle depicts the amount accumulated during the formation of this candle. If the number of transactions committed by a particular asset is increased, the histogram of the volume will be increased.

For traders, the importance of data that carries the volume indicator forex overemphasized. Performance measures are used to identify turning points in the trend, as well as signals for the continuation of the movement. Thus, a high volume of activity indicates the presence of a financial instrument, it's being bought and sold in large quantities, it's liquid and, most likely, will rise or fall heavily. Low volume traders on the contrary shows a lack of interest of market participants traded assets, the asset may be moving sideways for a long time, respectively, to earn a lot of it will not succeed.

In the currency market all traders face the problem of lack of informative and reliable indicator of volume. The trading terminal MetaTrader 4 forex volume indicator appears as a tick volume, which can not be analyzed. If the currency pair does not have the "right" amount, then such instruments as futures on currency has complete and reliable level of volume. Therefore, many traders use third-party information products or trading platforms. For example, one of the most popular ways of getting a fair amount of use of the platform thinkorswim. As you can see in this platform you can see the charts on the futures exchange are known to us and, accordingly, to monitor the volume of transactions.

There are a few universal rules concerning the volume of trade:

  1. If the light volume decreases, the interest in the currency decreases accordingly. For traders, it's a signal to the adjustment of prices after a sharp rise or fall, or signal a possible change in trend.
  2. The increase in trading volumes demonstrates the increased interest of market participants in the asset - that is, for example, the trend may continue or reverse.
  3. Slow decay of the volume shows a small respite in the market after this is usually followed by a strong burst of activity. That is, the price can rise or fall significantly.
  4. Especially large amounts of performance accompanied by a strong increase or decrease in price, and give the signal to the end and the beginning of a new movement.

Analysis of the volume does not make sense without the values ??of the price, so you need to watch on the behavior of prices. There are times that when a large amount of the price does not change is a sign that at the current level, the number of buyers and sellers of the same. Forex volume indicator is a powerful tool for the analysis, so traders should give him a lot of time studying in order to better understand the actions of the players in the market.

If longer-term charts visible activity and interest in the currency market, the short-term chart shows a major purchase or sale, which, of course, leads the market in motion. Therefore, one can analyze the volume of transactions for different purposes, will be able to benefit as intraday traders and investors position.

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