Forex Volume Indicator

Volume Indicator Definition

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

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

Volumes Indicator

Forex Volumes Calculation

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

How to use Volumes in trading platform

Use indicators after downloading one of the trading platforms, offered by IFC Markets.

See how to use Volumes in NetTradeX trading platform, watch the video.

For more information how to set the indicator in the terminal please click here.