Forex Volume Indicators | Top Best List Handpicked

Forex volume indicators, when it comes to doing technical trade analysis in forex, having the best volume indicators is crucial.

This post will demonstrate a few of them to you. Many expert forex traders would never trade without first examining a volume indicator.

Because most trend indicators only provide entry and exit signals, this is the case. However, not all indications are accurate.

Relying entirely on trend indicators might lead to more losses. A volume indicator can in helpful in this situation.

You may use a volume indicator to filter out signals that have a greater likelihood than others.

What is the best volume indicator for Forex?

The Chaikin Money Flow indicator is the greatest volume indicator for reading volume in the Forex market (CMF). Marc Chaikin, a trading maestro who was mentored by some of the world’s most successful institutional investors, created the Chaikin Money Flow indicator.

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What is Forex?

Because it represents institutional accumulation-distribution, the Chaikin Money Flow is the best volume and traditional volume indicator.

The logic underpinning each indicator differs between the Chaikin Money Flow and the conventional volume. Second, the trade volume analysis and how the trading signals are understood are somewhat different.

On the one hand, volume is simply a measurement of how much a certain currency pair has traded in a given amount of time. A trend’s strength and weakness are measured using volume.

A significant trend should, in general, be accompanied by increased volume. A rapid increase in volume, on the other hand, might indicate the end of a trend.

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Forex Volume Indicators

Is low volume bullish or bearish?

Down volume refers to large volume trading that has a negative impact on the stock. Down volume is the polar opposite of up volume, in which the price of an asset rises as volume rises. Bearish trading is indicated by lower volume, whereas bullish trade is indicated by higher volume.

If a security’s price declines but only on low volume, there might be other variables at play than a real bear market.

For example, some market makers or other players may be on vacation, resulting in reduced liquidity than normal, or buyers may be waiting for the price to drop somewhat before bidding.

In any case, down volume denotes a situation in which the price falls coupled with an increase in trading volume, indicating that the price is falling.

Traders that make a lot of noise are often a big part of high-volume deals. In certain cases, a stock may be increasing as a result of a favorable development inside the firm that has just been made public.

If the news was unexpected, it might result in a large amount of trading from both institutional and ordinary investors as the price corrects and rises.

Because these investors follow trends and trade frequently based on emotional response, noise traders can contribute significantly to high volume trading days.

The volume of a security that is being considered for investment is closely monitored by most technical analysts and institutional investors. A big market trigger that attracts attention usually causes a rise in volume.

Volume, according to many technical analysts, may also be an indicator of a price breakout in either a bullish or bearish direction.

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Forex Volume Indicators

What does low volume indicate?

Low volume usually indicates a less liquid market. Stock prices do not fluctuate as much when there is adequate stock available on both the purchase and sell sides, therefore a more liquid market equals reduced volatility.

There are two types of light volume: predicted light volume and light volume that suggests a likely market direction shift. Around the holidays, there is an increase in expected light volume.

If it happens outside of a vacation, though, it indicates that market participants are staying away for a cause.

Low volume in a bull market might signal traders are anxious about a market peak, which will be followed by a correction.

If the market is falling, a lack of short-selling interest might result in low volume if traders believe the market has struck support and a short-covering recovery is about to begin.

A tactical trading approach might make advantage of low volume. During a low-volume day, a huge institutional investment fund may influence market direction by trading enormous blocks of shares.

Low volume indicates that fewer shares are trading, and fewer shares indicate less liquidity in the overall market. In a low-volume market, stock price volatility increases.

In an illiquid market, trading large blocks of stock may generate big price movements in those equities. If the equities being traded are among the market’s top large-cap problems.

The performance of the indices may be affected by changes in issue prices, which might go up or down depending on whether there is buying or selling.

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Forex Volume Indicators

Forex volume indicators

This article contain all the top best forex volume indicator handpicked for you, at the end this article you have will thank me for sure, are you ready? If yes is your final answer then let’s get started.

1. Version 1.5 of Better Volume

The Better Volume 1.5 indication is based on the Metatrader 4 trading platform’s standard volume indicator (MT4).

It uses bars to measure how much the price has changed in a period, exactly as its source indication.

This indication is different from its source indicator in that it provides additional information about the item being traded.

Better Volume makes use of colors with different meanings to assist forex traders better understand what is going on in the currency market.

The superior volume indicator also shows a moving average over the volume bars, which is a unique feature. This provides you with an extra resource from which to get data.

The developer’s intended use of the improved volume indication may be the best way to utilize it. That is, by adhering to the established color schemes.

The average market state is shown by blue bars. A strong bullish indication is represented by a red bar, whereas a strong bearish signal is represented by a white bar.

When there is a very low trading volume, yellow appears, and green appears when traders are paying somewhat more attention to the currency pair.

Combining these factors allows you to determine the optimal timing to enter and exit any trade, which is why the Better Volume indicator is ranked among the finest Volume indicators for forex traders.

Better Volume News Alerts is a comparable indication to the better volume indicator we discussed before.

The only difference is the color difference. Better Volume News Alerts paints it brick red, whereas Better Volume paints it yellow.

Blue fades to white, white fades to peach, and red and green fade to blue.

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2. Indicator of Volume Profile

When you install the Volume profile indicator on your MT4, it displays on your chart as a series of horizontal lines extending to the right.

The primary goal of this indicator is to assist traders in identifying probable hotspots of price movement activity. However, this indicator’s use does not stop there.

Traders who utilize the Volume profile indicator to detect probable reversals or dynamic and short-term support and resistance zones may have better success.

The indicator’s lines may be used as support and resistance levels for the current or future period.

When employing an indication that appears on your chart screen, it’s critical that it’s configurable so that it doesn’t get in the way of other information you’re attempting to extract from the chart.

This is exactly what the Volume Profile indicator does. It enables you to tailor its parameters to your tastes without obscuring other data points on the chart.

Another notable feature of this indicator is the ability to alter the line range period.

The range period is set to one day by default, but you may change it to weekly, monthly, or even 15 minutes. This characteristic makes it suitable for a wide range of trading techniques and periods.

When used alone, this indicator will always provide an imperfect picture of the market. Combining this indicator with other forex technical analysis tools is the best approach to utilize it.

When you combine the Volume Profile indicator with price action information, for example, you may improve accuracy.

3. Indicator VWAP Plus

One of the few indicators that combines volume and trend cues is the VWAP plus indicator. VWAP stands for Volume Weighted Average Price, which emphasizes the importance of volume.

This indicator uses volume to calculate regions of dynamic support and resistance levels, which gives it its signals.

VWAP Plus appears as a series of lines extending from a vertical line on the left side of the chart. Advanced traders may be able to estimate that the VWAP + indicator shows zones of dynamic support and resistance as soon as you install it.

The VWAP is based on a basic trading concept. The bullish region is located above the VWAP’s aqua blue line, while the bearish area is located below it.

Yellow and white lines surround this line, indicating regions of dynamic resistance and support, respectively.

After the price crosses this midline, a trader may place a trade and take profit at any of the surrounding lines.

The VWAP draws blue horizontal lines that extend to the left of the chart, which is another essential characteristic that traders can always rely on.

Because the price tends to respond around these lines, they may also be utilized as support and resistance levels.

Intraday traders are the kind of traders that may benefit the most from the VWAP indicator.

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4. Indicator of Tick Volume

A trader may use the Tick Volume indicator to find the ideal timing to initiate a trade. It is based on the same tick per period idea as all other forex volume indicators.

This one, on the other hand, is more attractive and less perplexing since it employs four colors on wavelike bars to provide unambiguous market activity forecasts.

The Tick Volume indicator delivers its signals differently than other indicators. It does it in a manner that makes its interpretations objective and clear.

The bars, for example, travel in waves above and below a halfway. These bars come in four different hues, each with its own meaning, and provide trade entry indications.

As a result, the Tick Volume indicator provides volume information while simultaneously providing trade entry indications.

Because of the Tick Volume indicator’s simplicity and clarity, there isn’t a better method to utilize it than the way it was designed by the creator.

In an upswing, the blue bars reflect growing volume, while the green bars represent dropping volume. When the first few blue lines form over the midline, you should consider buying.

Similarly, growing volume on the downtrend is represented by yellow bars, while declining volume is represented by red bars. When the first few yellow bars arrive, place your sell orders.

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5. Indicator of OBV Divergence

The On Balance Volume indicator is a common price momentum indicator used by most traders.

A rapid momentum gain usually indicates that the price will shortly rise, and a sharp decrease usually indicates that the price will plummet.

Divergence trading is another element of the OBV indicator that you may use. And here is where OBV divergence is useful.

The OBV indicator is used by traders to identify places when the price diverges from the indicator line. This is often an indication that a trend is waning or that a reversal is approaching.

For new traders, though, finding divergences may be difficult. Divergences are missed by even the most experienced traders.

When a beginner trader notices a divergence, deciding which way to trade might be difficult.

However, the OBV divergence indicator eliminates these issues. It adds divergence lines on the chart, allowing you to keep track of every new divergence in the forex live market.

This indicator goes a step further by adding arrows to each divergence to indicate which direction to trade.

This simplifies things for new traders who aren’t sure what to do when a divergence arises. They may now just use the arrows to enter transactions.

The OBV divergence’s deftness in pointing out its signals has earned it a spot on our choice of the top Volume indicators for all traders.

By comparing it to other divergence indicators, such as the RSI divergence and Stochastic Divergence indicators, the accuracy of this indicator may be improved.

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6. Indicator of Market Facilitation

When searching for the best trade entry situations, many forex traders depend on volumes, which is a positive thing.

The higher the volume, the more volatile the pair will be, and the greater the trading chances.

However, Bill William, the creator of the Market Facilitation Index indicator, claims that just knowing what the volume indicates isn’t enough.

It’s just as vital to comprehend the traders’ reactions to what the volume implies. The MFI indicator is used to calculate the price change in proportion to volume.

Regardless of what the volume indicator suggests, traders aren’t always interested in all chart indications that indicate the start of a new trend.

And when this occurs, it simply signifies that whatever trend the volume is indicating may not endure long due to a lack of traders willing to stick with it. This is where the MFI really shines.

The MFI indicator is one means of distinguishing between “poor volume,” which generally leads to modest movements, and “excellent volume,” which forecasts significant trends.

It also gives you insight into what other traders think about your currency pair.

If the MFI rises in tandem with volume, for example, this indicates that the trend is likely to be strong. The green bar is used by the MFI for this.

The dark bar, on the other hand, shows when both MFI and volume on a trading instrument are decreasing.

The MFI and volume are traveling in opposite directions in the other two cases, which the MFI depicts with white and blue bars. When these bars emerge, you should proceed with care.

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7. Indicator of Buy-Sell Volume

It’s tempting to dismiss the buy-sell volume indication as simply another perplexing sign, particularly when it’s your first encounter with it.

However, after spending more time examining the indicator, we discovered that it has a good aspect that few other volume indicators can claim of.

The buy-sell volume indicator interprets the volume of the forex asset you’re looking at using a rising and falling wave of dotted lines.

While it does not generate its own buy or sell signals, it does assist the trader in filtering out the less likely indications.

The buy-sell volume indicator may be used in a variety of ways. Some include predicting when a trend has adequate strength by using the rising and falling of the dotted lines.

However, one less common approach to utilize this signal is to search for locations where one color edges out of the other.

Buy when green edges out red on the indicator’s peak or increase. When the red hue in the indicator’s peak edged out of the red, it was time to sell.

These signs are easy to overlook, and you may require strong vision to see them. However, once you’ve seen them, you’ll notice that these edges do provide indications that may be depended upon. For intraday traders, this technique works well on shorter time periods.

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8. Weis Wave Indicator

The Weiswave indicator’s power lies in the way it seeks to replicate trader efforts with a sequence of bar waves.

Traders that understand how to analyze these waves often say that it has improved their trading.

One of the most notable applications of the Weiswave indicator is its ability to clearly predict possible reversals.

When the height of each wave is less than the previous ones, it might indicate that your present trend is deteriorating and that a reversal is imminent.

The indicator does not, however, try to anticipate the precise moment when the reversal will occur.

Before the reversal occurs, the waves may continue to shrink in size for some time.

As a result, when utilizing this indicator to detect reversals, think of it as a warning signal rather than an entry or exit signal.

For example, if you’re going to join a trend where the waves are growing shorter, you could be joining a fading trend.

9. Volume Oscillator by Percentage

The Percentage Volume Oscillator may seem to be the MACD at first look, but it is not. The volume component of the Percentage Volume Oscillator indicator is used in its computation.

This non-repaint indicator not only provides bearish and bullish indications, but it also aids in the separation of weak and strong trends.

One of the nicest aspects of the indicator is that it resembles the MACD so closely that traders may find it easy to utilize.

When the moving average lines cross, the indicator’s textbook use case is to initiate a trade. Green and red hues are used in the bars to aid in filtering.

So, when the faster moving average crosses over the slower moving average and the bars are above the zero line and green, you’re seeking to purchase.

You wait for the fast-moving average to pass below the slow-moving average and the bars to be below the zero line and red in the same way.

While that trading technique might be beneficial, another unique method to use this indicator is to trade divergences.

When the price is producing lower lows, for example, you check for where the indicator is forming higher lows.

This indicator is designed in such a way that it is simple to use for both expert and newbie traders. Its indications are simple and straightforward.

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Does high volume mean higher volatility?

Stock volatility refers to a stock’s significant decline or gain in value over a certain time period. The volatility of a traded stock is inversely proportional to its volume.

When huge quantities of a stock are acquired, the stock price or value rises abruptly; nevertheless, when big quantities of a stock are sold, the stock price or value falls sharply.

The stock’s price or worth has dropped dramatically. In other words, volatility happens when trading orders for a specific stock are unbalanced.

Forex Volume Indicators

Conclusion

We’ve reached the bottom of the list. However, we should point out that this is by no means a complete list. There are a slew of other indications that are just as useful.

However, we discovered that they have distinct characteristics that make them among of the greatest Volume indicators for traders.

Intraday raiders aren’t the only ones who can get some honey from these indicators’ honeycomb.

These indicators may be useful to swing traders and even stock traders, if not for trade entry and exit signals, then for assessing whatever reading instrument is on their screen.

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