A trading volume indicator can dramatically improve your profitability, and the use of a volume indicator can make the analysis easier than reading the pure volume histogram at the bottom of the chart.
There are 3 things that are absolutes on a chart:
Price
Volume
Time
Most of the other elements traders put on charts are calculations based on one or more of these absolute values and we call them “indicators.”
Trading volume, like price and time, is not an indicator.
However using a volume indicator can be helpful in trading in that it can help us “see” the meaning behind price and/or volume more easily.
In the video below, I present a couple basic principles of how to read pure price and volume, and then go on to show how using a volume indicator can enhance your insight into what trading volume is telling you about potential future movements in the market.
This website is for educational purposes only. Futures, options, and spot currency trading have large potential risk and traders should be well-educated before putting real money at risk. You must be aware of the risks and willing to accept them in order to invest in all markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to buy/sell a futures contract or currency.
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Futures, options, and spot currency trading have large potential risk and traders should be well-educated before putting real money at risk. You must be aware of the risks and willing to accept them in order to invest in all markets. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. This website is neither a solicitation nor an offer to buy/sell a futures contract or currency.
