And, of course, falling ones show weakness.

Because of automated order types, the market makes different moves than before. Different types of oscillator have appeared as a result. Traders care about volume, but few use volume oscillators. They offer far more valuable information than price oscillators. Volume oscillators do not travel into overbought or oversold territory like classic ones.

As such, their interpretation differs. Yet, all approaches work. Traders care about the information provided by the Forex volumes indicator. It shows potential interest at moments in time.

The standard interpretation is to analyze a trend with the volume indicator. In reality, traders analyze the overall market activity. Not only a trend. For example, one of the best volume trading strategies looks at falling volume while prices increase. As such, traders look to fade that move. Or, to sell short.

How else to use the Forex volume? Another way is to look at bars that stand out of the crowd. Or, that differ strongly from other ones. The volume indicator mt4 trading platform offers can spot the start of a trend. This is a sign of strong demand. As such, it is no wonder a strong trend started. Such simple volume trading strategies are sometimes enough to end up on the right side of the market. But, is this valid one hundred percent of the times? Because volume is relative to the Forex market, the answer is no.

The formula goes like this:. Therefore, it is no wonder that traders look for spikes in volume.

Conclusion – Best Volume Indicator

They usually come at turning points. It was range bound for several years. As a result, such an oscillator works with overbought and oversold conditions. Instead, it has a simple line. This line acts as an oscillation level for a respective security. It works well for a Forex pair too. Don Worden wanted to see where the market has a large-lot activity.

Consequently, the TSV differs from the volume indicator mt4 offers. It is more accurate in showing tops or bottoms. One of the best volume trading strategies with the TSV is to look for divergences. That is divergences between the price and the volume indicator. This is the power of this Forex volume indicator: it shows a breakout before it happens. This makes it difficult to read a chart pattern. Trading has changed. Head and shoulders, double and triple tops, wedges…they are an important part of technical analysis. But, the Forex market changed since automated trading grew in popularity.

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Hence, the way a market bottoms or tops has changed too. The classic volume indicator mt4 trading platform offers, is not enough anymore. Volume Spread Analysis, or VSA as it is also known is a powerful trading theory, deals with interpreting candlesticks based on their volume. The subject is so vast, it is difficult to find a starting point. Retail traders lose money on the Forex market. Most of them. At least when it comes to their first deposit, retail traders lose.

Therefore, who makes money? The answer is that the other parties involved make money. Not the retail trader. Big players. Professional traders play big. So, a fair statement would be that if retail traders did the same as professional traders, they would stand a chance in the Forex market. It starts from the assumption that professional traders leave footprints in volume data. As such, what if one can find them and then trade accordingly? The problem is the same as any volume indicator: is the volume reliable? Even if not, like in the case of the Forex market, it still offers a glimpse into what professional traders do.

VSA as a Forex volume strategy is difficult to understand. It starts from two basic concepts: no demand and no selling pressure. Hence, this is bearish. This is opposite to the classic volume indicator mt4, VSA looks more similar to Japanese candlestick techniques. If the falling comes with lower spread and volume, the market is actually bullish. Buyers quietly step in. Hence, the market gets ready to jump.

HOW TO INSTALL REAL MARKET VOLUME

The declining volume together with the narrowing spreads offers a clue that the market is geting ready to jump. So, it did. Powerful volume trading strategies like this one show ideal conditions to enter a market. Right before the breakout. However, this line is a special one for several reasons. First, it appears at the bottom of a chart. But, it is not an oscillator. Second, it shows the relation between the number of transactions and the price movements.