may be susceptible to a reversal. The Chaikin did that and from that moment on, traders only sell. In our case, the move of a currency pair. What you see in the spot Forex market is not the actual traded volume. As explained earlier, the idea is to buy or sell when the Chaikin crosses the zero level. If we look further on, we can see that the price did indeed subsequently recover thereafter: Source: GBP/USD Hourly Chart - MetaTrader 4 - Data Range: 27 Mar, Apr, 2017. Traders rely on the brokers tick volume to give an estimation of the actual volume. Thats why traders use the TVS as explained in this article. The VSA is an interesting theory.
However, because we have already showed how a divergence with a Forex volume indicator works, well focus on the crossing strategy. Looking at trading volumes can reveal useful information. For example, low volumes can point to a weak price move. Take a look at the volume indicator in, mT4.
Price closes lower than the previous candle. Its liquidity is the biggest in the world. Instead, we are seeing plenty of red bars, and the volume eases off as the price drops. So what can we do if we want to use volume to trade? If volumes remain high (or increase) as prices move in the direction of the trend, we can infer that the trend is in good health. Especially among retail ones. These are: Oscillators (e.g. Right before the breakout. If theres no demand, the market will eventually fall. How else to use the Forex volume? For example, over key news releases, where we would expect volumes to be higher, the volumes indicator consistently reflects such behaviour. Theres so much material on it that traders no longer know which is the right approach.