Indicators
Volume in trading
How much was traded in each candle. In forex it is tick volume: the number of price changes, a good proxy for activity.
Why it works
Volume confirms intent. A breakout on rising volume is more likely to continue than one on thin volume.
How to use it
Check that breakouts and displacement candles come with above-average volume. Be careful with moves on very low volume.
The typical mistake
Reading forex tick volume as exact traded size: it shows activity, not the real amount traded.
FAQ
What is Volume in trading?
How much was traded in each candle. In forex it is tick volume: the number of price changes, a good proxy for activity.
How do you trade Volume?
Check that breakouts and displacement candles come with above-average volume. Be careful with moves on very low volume.