The Volume indicator tracks changes in trading volume so you can more easily forecast market shifts when trading on trends.
What is trading volume?
Trading volume is the amount of an asset being traded over a specific period. It reflects market activity and interest in an asset.
The Volume indicator helps you:
1. Confirm trends. If the asset price rises and the volume increases, it signals a strong uptrend. If the price rises while the volume decreases, it signals a weakening trend.
2. Identify reversals. When the trading volume changes, it may indicate that buyers or sellers are gaining control, leading to potential market shifts.
3. Reveal support and resistance levels. If the price struggles to break through a level with high volume, that level becomes a key support or resistance point for future price movements.
4. Assess liquidity. During periods of high volume, trades are typically executed faster and at better prices. In contrast, low volume can lead to higher volatility — especially around holidays. Large investors have more control when fewer players are trading on the market, making price movements unpredictable and positions harder to enter at good price levels.
5. Filter false signals. If another indicator signals a buy or sell signal but the volume hasn’t increased, the signal might be unreliable. Look for more confirmation before entering a trade.
You can use the Volume indicator on all chart types (except zone charts), for all asset classes and on any device (desktop, mobile and web platforms).