volume indicator - an indicator showing the number of transactions in a given unit of time. The graph is usually celebrated on the view columns whose height is directly proportional to the volume.
concept of volume.
is well known that the volume of forex rates are not available. The volume is clearly visible when realnoi how many lots (Transaction transaction) and in what specific point in time released on the market.
In the forex market is only so-called tick volume, which characterizes the number of transactions per time unit. Ie a kind of voting, where all votes are equal, regardless of the volume of transactions. Tick ??down - tick up! It is not known how many millions lay in one direction or another, so the use of indicators in Forex is a rather conventional nature and is unlikely to reflect the true situation. In general we can say that the indicators are present in the volume of trades for the Forex has no such meaning, such as for the stock market However, it is worth noting that the tick size and the actual amount, in principle, different concepts.
We will not be in this article apply to trade forex with the help of the indicator. A look at what exactly is the volume indicators. And to use them in forex trading or not. Already up to you.
formula and calculation of volume
How to calculate the volume? For each indicator of its formula. Therefore, when considering the further the indicator will indicate a formula by which the indicator is calculated.
Trade and calculation of volume.
When trading volume is determined not by the absolute value of the trading volume and its changes over time. Necessary to consider the discrepancy between the volume of the indicator and the price chart. The most important is that the dynamics of the average turnover to determine a trend and "measure" its strength and stability. At a steady upward trend should have higher volume in periods of rising prices and the decrease in the downward (corrective). Then, at points corresponding to the end of the correction, an upward motion often observed minimum amounts, and at points corresponding to local maxima, the amount will be recorded as a maximum. At a steady downward trend volume increases in periods of decline, quotes and decreases during periods of retracement upward. At the points of maximum correctional movements will be observed at least up trades.
new indicator of Better Volume
indicator Better Volume ... The secret to the analysis of
volume, perhaps the most underrated tool traders in technical analysis. But if you learn how to analyze and interpret it, you'll be able to see the turning point, and where to anticipate changes in trend. That will give you an advantage over the other.
Better Volume indicator marks bars histogram, the following criteria:
- Volume Climax Up - the maximum amount, the maximum range, bottom-up bars (red)
- Volume Climax Down - the maximum amount, the maximum range, top-down bars (white)
- High Volume Churn - the maximum amount a small range of bars (green, PaintBar blue)
- Volume Climax + High Volume Churn - both conditions (purple)
- Low Volume - the minimum amount of bars (yellow)
- When the volume indicator signals are absent, the histogram is colored blue-green
It is also possible to paint the signal bars in their own colors.
Remember that this method of determining the turning points, with the help of the indicator works well in combination with other indicators. Decision-making based on it must also be accompanied by the testimony of other indicators and methods.
PS More information can be found on the developer's site, where you can also download the pdf file, which describes in detail the work of the indicator.
Indicator Volume Map
volume for the day, green - the accumulated amount in 5 days, blue - 30. Figures above - others, such as those shown in the examples in the indicator set period for which data should be reflected.