Forex Volume Indicator
Volume Indicator Definition
Volume indicator is a technical analysis tool, which reflects trading activity of investors for a given time period.
For more information how to set the indicator in the terminal please click here
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.
- Rising trading volumes during an uptrend confirms bullish mood;
- Rising trading volumes during a downtrend confirms bearish mood.
- 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.
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.