volume forex indicator

the indicator does not truly represent actual volumes of trades in the market. In conclusion, let us stress that the Better Volume indicator actually provides traders with a basis for developing their own trading system. Since we cannot use actual volume figures for, forex trades, we need to use a proxy for volume instead. However, this approach is applicable only to the stock market. As you can see, they are virtually identical to each other.

The good news is that with freely-available, high-quality trading software at our fingertips these days, we don't have to calculate anything manually. A common drawback of such trend-following methods is that they generate frequent false signals and only infrequently signify a true trend. Futures Volumes, the term volumes usually refers to the total number of contracts traded for a particular instrument and over a certain period of time in the financial markets. The only difference between them is that the former signals a sharp increase in the activity of sellers in the market. A yellow bar indicates a very low trading volume.

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It is impossible to track the total trading x rates rmb to usd volume in terms of standard lots so traders use so-called tick volumes. If volumes decrease as price continues in the direction of the trend, it suggests the trend is running out of steam. So really, volume -based indicators for, forex should be more properly called tick volume indicators. Therefore, if H1 timeframe is enabled in a terminal, a bar displayed on the Volumes indicator s chart indicates the number of ticks per hour. The others utilise volume as part of their calculations, it is true. On the picture below, you can compare histograms of tick and futures volumes: From the technical point of view, the difference between them is that tick volumes display the total number of changes in price over a particular period of time. When Volume increases it indicates a growing interest in the market, therefore it may strengthen a main trend or start a new trend; When Volume decreases it indicates that interest in the market is decreasing, which calls for either a trend reversal or temporary market.

It is currently one of the best, or rather, the most popular volumes indicator designed for MetaTrader trading terminal. This kind of trial and error can be expensive with real money, though which is why it's so useful to have a risk-free sandbox to play around in, such as our demo trading account.

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