Forex Volume Indicators
Volume indicators are used to determine investors' interest in the market. High volume, especially near important market levels, suggests a possible start of a new trend, while low volume suggests traders uncertainty and/or no interest in a particular market.
In Forex Volume data represents total number of quotes for the specified time period.
Forex Volume Indicators:
The methodology of using Volume indicators
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 consolidation;
Sudden and vigorous increase in Volume may signal for an upcoming reversal, while gradual decreasing in Volume may still be supported by rapid price moves.