Monday, June 9, 2014

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:
- Volume Indicators Forex
- Acceleration Bands
- Market Facilitation Index
- Volume
- Chaikin Money Flow (CMF)
- Accumulation Distribution
- Volume Oscillator (PVO)
- Demand Index
- On Balance Volume (OBV)
- Money Flow Index (MFI)
- VWAP (Volume Weighted Average price)

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.

Sourcing: ForexIndicator

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