Forex Volume Indicators

The volume of transactions that occur in the market is a salient indicator within it.

The vigorous participation of traders decides the number of completed transactions within the market.

When prices rise, the volume increases in an upward trend. Logically, the volume becomes smaller when prices fall.

The same can be said if the trend is caught in a downward direction. In this case, volume increases upon the fall in price and, conversely, volume decreases upon the rise in price.

Worthy of note, a strong feature of a volume indicator is that it is, more often than not, ahead of the market price.

Usually, there is no clear way of showing the direct volume of transactions. As such, the volume indicator comes into play. This illustrates the number of value of changes, simply called “ticks”, per bar. These changes are reflected by the volume indicator. Consequently, the number of operations is reflective through this activity.