Volume indicators are used to determine the interest of investors in the market. A large volume, especially near important market levels, indicates the possible beginning of a new trend, while a low volume implies uncertainty and / or disinterest of traders in a particular market.

Information about the volume on the market Forex represents the total amount quotes for a certain period of time.

Forex Volume Indicators:

  • Acceleration bands
  • Market Promotion Index
  • Volume
  • Chaikin's Cash Flow (CMF)
  • Accumulation/distribution indicator
  • Volume Oscillator (PVO)
  • Demand index
  • Balance volume (OBV)
  • Cash Flow Index (MFI)
  • VWAP (volume-weighted average market price)

Methodology for using volume indicators

An increase in volume indicates a growing interest in the market, so the main trend may strengthen or a new one may begin;

A decrease in volume means that interest in the market is decreasing, therefore, the trend may reverse, or a temporary consolidation may form on the market;

A sudden and vigorous increase in volumes may signal an upcoming reversal, while a gradual decline in volumes may still be supported by rapid price movements.