What trading volume can tell us. alright, if you don't know anything about volume, then let's take a look at how trading volume in stocks works first, because it is a smaller market and it is easier to explain the concepts. even though this is not about forex trading, it will give you a lot of context for the forex market, later in this post.. The forex market is a decentralized market, which means that there is no formula for volume or method of keeping track of the number of contract and contract sizes, such as in the stock market. the forex market measures volume by counting the tick movements.. Yet, volume trading strategies are popular among forex traders. while the volume indicator mt4 platform offers doesn’t refer to the whole market, it acts as a proxy. or, in plain english, it offers an educated guess about the total volume..
Simple trading strategy using volume indicator before start trading i will always count "up volume" indicator 1 - 2 - 3. when 3rd candle appear, always see its power.. The forex volume problem. unfortunately forex volume cannot be measured as precisely as it is for equities, where every share traded equates to one on the volume bar. so selling 200 shares means 200 in selling volume. in stocks the number of shares traded is managed and reported by the central exchanges, such as the new york stock exchange.. Volume analysis is the technique of assessing the health of a trend based on volume activity. volume is one of the oldest day trading indicators in the market. i would dare to say the volume indicator is the most popular indicator used by market technicians as well..
