What is Volme in Forex Market?
Unlike stock markets, Forex
is decentralized — there is no single exchange.
So TradingView, MT4/MT5 show Tick
Volume, not real
volume
What
is Tick Volume?
Tick Volume = Number of price changes (ticks) in a candle.
·
More
ticks → More activity → High volume
·
Fewer
ticks → Less activity → Low volume
Tick volume is 95% correlated with real volume — so traders still
use it.
 |
| How to Trade Volme in Forex trading |
Why
Volume is Important in Forex?
Confirms Trend
Strength
·
Uptrend
+ Rising volume → Trend is strong
·
Uptrend
+ Falling volume → Trend may reverse soon
Identifies Breakouts
·
Breakout
with high volume → True breakout
·
Breakout
with low volume → Fake breakout / fakeout
Shows Market
Participation
·
High
volume: News, big players active
·
Low
volume: Market quiet (Asian session, holidays)
Example
If EUR/USD breaks resistance with high volume, there is a higher chance the
breakout continues.
If volume is low, the
breakout may fail.
Common Volume Indicators in
Forex
Here are the most used volume
tools:
·
Volume (standard tick volume)
·
Volume
Profile
·
On
Balance Volume (OBV)
·
Money
Flow Index (MFI)
·
Accumulation/Distribution
(A/D)
Quick Summary
|
Term |
Meaning |
|
Volume |
Activity in
market |
|
Tick Volume |
Number of
price changes |
|
High Volume |
Strong
move, breakout confirming |
|
Low Volume |
Weak move,
possible reversal |
If you want, I can also give
you:
·
Best
volume-based strateg
·
A
Pine Script volume
indicator
·
How
to combine Volume
+ RSI/MACD
Just tell me!
How to use Volme in Forex
trading?
Using volume in Forex trading can give you a big edge—even though Forex is a decentralized market and doesn’t provide true centralized volume. Traders still rely on tick volume, which measures how many times the price changed in a candle. Studies show that tick volume closely correlates with real trading activity, so it’s very useful.
Below is a simple, clear guide on how to use volume in Forex trading effectively.
1. Understand What
Volume Means in Forex
Forex brokers provide tick volume, not actual traded contract volume.
Tick Volume = Number
of price changes during a candle
More price changes = more activity = more trader interest.
2. High Volume vs
Low Volume
High Volume
·
Shows
strong market participation
·
Confirms
trends
·
Breakouts
are more reliable
Low Volume
·
Indicates
weak market interest
·
Fake
breakouts are common
· Ranges and consolidations appear
3. How to Use Volume
in Trading Strategies
A. Volume
Confirmation of Trends
A healthy uptrend shows:
·
Price
↑
·
Volume
↑
A weak uptrend shows:
·
Price
↑
·
Volume
↓ (trend may reverse soon)
Rule:
If price moves in a direction with increasing volume → trend is strong.
B. Volume for
Breakout Trading
Fake breakouts are common in
Forex. Volume helps filter them.
Strong breakout =
High volume
Weak breakout = Low
volume
Buy breakout only when price breaks support/resistance
with volume spike.
Skip breakouts with low volume.
C. Volume in
Reversals (V-Shapes, Double Tops, Bottoms)
Bottom Reversal
Pattern
·
Volume
falls during downtrend
·
Sudden
high volume spike at the bottom
Buyers entering → reversal likely
Top Reversal Pattern
·
Volume
falls during uptrend
·
High
volume appears at resistance
Sellers entering → reversal likely
D. Volume +
Candlestick Patterns
Combining volume with
candlesticks increases accuracy.
Examples:
Bullish Pin Bar + High
Volume
Strong buy signal
Bearish Engulfing + High
Volume
Strong reversal
Hammer + Low Volume
Weak pattern, ignore
4. Best Volume
Indicators for Forex
You can use any of these:
1. Volume (Tick
Volume)
Default MT4/MT5 indicator.
2. On Balance Volume
(OBV)
Shows accumulation/distribution.
3. Volume Profile
(TradingView)
Shows where most trades
happened.
4. Money Flow Index
(MFI)
Volume + RSI combined.
5. Simple Forex
Volume Strategy (Easy to Use)
Buy Setup
1. Price breaks resistance
2. Volume spike
3. Retest of resistance
4. Bullish candle entry
Sell Setup
1. Price breaks support
2. Volume spike
3. Retest of support
4. Bearish candle entry
Works best on:
15m, 30m, 1H, 4H
Summary: How to Use Volume Effectively
|
Trading Situation |
What Volume Tells You |
|
Uptrend |
Rising
volume = strong trend |
|
Downtrend |
Rising
volume = strong sellers |
|
Breakout |
Only trade
with volume spike |
|
Reversal |
Volume
spike confirms turning point |
|
Candles |
High volume
makes pattern reliable |
If you want, I can also
provide:
Volume-based strategy
Volume + RSI strategy
Volume + Moving Average strategy
Pine Script indicator for Volume trading
Just tell me!
How to identify volme
divargan in forex trading?
Volume divergence in forex
trading helps you detect weakening
trends or potential reversals by comparing price movement with volume movement.
Even though forex uses tick
volume (not real
volume), it is still highly reliable for spotting divergence.
What Is Volume
Divergence?
Volume divergence happens
when price makes a new
high/low but volume does NOT confirm it.
This shows less participation, meaning the trend is losing
strength.
Types of Volume
Divergence
1. Bearish Volume
Divergence
Price → makes higher highs
Volume → makes lower
highs
Meaning: Buyers are losing strength → possible
trend reversal downward.
Use: Look for selling opportunities.
2. Bullish Volume
Divergence
Price → makes lower lows
Volume → makes higher
lows
Meaning: Sellers are weakening → possible
reversal upward.
Use: Look for buying opportunities.
How to Identify
Volume Divergence (Step-by-Step)
Step 1: Select a
Volume Indicator
You can use:
·
Volume
(Tick Volume)
·
On-Balance
Volume (OBV)
·
Volume
Weighted MACD
·
Money
Flow Index (MFI)
Most common → Volume + OBV
Step 2: Identify
Price Structure
Look for:
·
Higher
highs
·
Lower
lows
·
Double
tops
·
Double
bottoms
·
Trend
exhaustion points
Step 3: Compare
Price vs Volume
Look for the mismatch:
Bearish Divergence
Example
·
EURUSD
makes a new
higher high
·
Volume
on the second high is much
lower
→ Trend becoming weak →
potential sell.
Bullish Divergence
Example
·
GBPUSD
makes lower low
·
Volume
becomes higher
→ Selling pressure reducing →
potential buy.
Psychology Behind
Volume Divergence
·
Volume
decreases =
fewer traders support the trend.
·
When
buyers/sellers reduce participation → trend becomes weak.
·
Smart
money enters against weak trends → reversal begins.
Best Timeframes for
Volume Divergence
Works best on:
·
15M
·
30M
·
1H
·
4H
Avoid very small timeframes
(1M/5M) because noise is high.
Best Indicators for
Volume Divergence Detection
Use:
·
OBV
Divergence
·
Volume
Divergence Scanner
·
MFI
Divergence
·
MACD
+ Volume
Simple Strategy to
Trade Volume Divergence
Entry
1. Identify divergence (price vs volume)
2. Wait for confirmation:
o
Break
of structure
o
Reversal
candlestick (hammer, engulfing, doji)
o
Trendline
break
Stop Loss
·
Place
SL below previous swing low (in a buy)
·
Or
above swing high (in a sell)
Take Profit
·
1:2
or 1:3 RR
·
Or
next support/resistance level
Want Pinescript Code?
If you want, I can create a Pine Script indicator that automatically highlights volume divergence on your chart.
Just tell me:
➡️ Version (v4, v5)?
➡️ Do you want alerts?
How to trade excute for volme and rsi best entry?
Volume + RSI Best
Entry Strategy
Even though Forex has tick volume (not real exchange volume), it still
shows market activity and
momentum.
Combining it with RSI helps filter strong entries.
Indicators Needed
1. Volume (Tick Volume)
2. RSI (14-period)
o
Overbought
= RSI > 70
o
Oversold
= RSI < 30
Optional: Add 50 EMA to identify trend direction.
BUY Setup (Volume +
RSI Entry)
Conditions
1. RSI Oversold
o
RSI
< 30 (market is temporarily weak)
2. Volume Spike (very important)
o
Current
volume bar is higher
than previous 5–10 bars
o
Shows
buyers are entering strongly.
3. Price must be above 50 EMA (optional but makes it more accurate)
o
Trend
is still bullish.
Entry
Enter BUY when the candle with high volume closes and RSI moves up above 30.
Stoploss
·
Put
SL below recent swing low (5–10 pips in small timeframes,
larger in higher TFs)
Take Profit
·
TP1:
1:1 RR
·
TP2:
At previous resistance
SELL Setup (Volume +
RSI Entry)
Conditions
1. RSI Overbought
o
RSI
> 70
2. High Volume Spike
o
Indicates
strong seller pressure.
3. Price below 50 EMA (optional)
Entry
Enter SELL
when candle closes with high
volume and RSI
moves down below 70.
Stoploss
·
Above
recent swing high
Take Profit
·
TP1:
1:1
·
TP2:
At previous support
Example (Easy to Remember)
BUY
·
RSI
< 30
·
Volume
big
·
Trend
up
➡
Buy next candle
SELL
·
RSI
> 70
·
Volume
big
·
Trend
down
➡
Sell next candle
Best Timeframes
·
M15,
M30, H1 = best
accuracy
·
Avoid
M1/M5 (too much noise)
Important Tips
·
Do
NOT buy just because RSI is oversold — wait for volume confirmation
·
Always
trade in direction of major trend
·
Use support/resistance to confirm entries
·
Avoid low-volume sessions (Asian range)
If you want, I can create a Pine Script indicator
for:
·
Auto
detect volume spikes
·
RSI
signals
·
Buy/Sell
arrows
·
Alerts
Just tell me “make indicator” and I’ll build it for you.
How to Best Analysis in
volme and best entry point moving avarage in forex trading?
Here is a simple + powerful way
to analyze Forex Volume
and find best entry
points using Moving Averages (MA).
1. How to Analyze
Volume in Forex (Correct Way)
Forex does not have real
volume (no central exchange), but brokers give Tick Volume — number of price changes.
Tick volume is still very reliable because it matches real institutional
activity.
How to analyze it?
1.
High Volume = Strong Trend
·
If
price is rising and volume increasing → strong uptrend
·
If
price is falling and volume increasing → strong downtrend
2.
Low Volume = Weak Move / Fake Move
If price moves but volume is
low → false breakout
→ Avoid entries.
3.
Volume Spikes = Reversals / Breakouts
A sudden big volume bar
suggests:
·
Breakout
about to continue OR
·
Big
players entering (reversal) 4.
Volume Divergence = Trend Reversal
When:
·
Price
makes a new high
·
Volume
makes a lower high
Weakening trend → reversal
expected
Same for new lows.
2. Best Entry With
Moving Averages (MA Strategy)
Most powerful and
beginner-friendly is:
20 EMA + 50 EMA
Trend & Entry System
Works best on:
·
15
min
·
1
hour
·
4
hour
Setup
·
20
EMA (Fast trend)
·
50
EMA (Slow trend)
Entry
Rules
BUY Entry
1. 20 EMA crosses above 50 EMA
2. Volume is increasing
3. Price pulls back to 20–50 EMA
4. Bullish candle appears (Hammer, engulfing)
Place
Buy
SELL Entry
1. 20 EMA crosses below 50 EMA
2. Volume is high or increasing
3. Price pulls back to EMAs
4. Bearish candle pattern forms
Place
Sell
PERFECT
ENTRY + EXAMPLE
BUY example:
·
20
EMA crosses above 50 EMA
·
Volume
rising
·
Price
pulls back
·
Bullish
engulfing candle forms
Enter at the engulfing
candle close
SL & TP
·
Stoploss: Below previous swing low
·
Take
Profit: 1:2 or
1:3 RR
3. Combine Volume +
MA for the Best Accuracy
|
Condition |
Meaning |
|
High volume
+ price above 20/50 EMA |
Strong buy
trend |
|
Low volume
+ price touching EMA |
Avoid →
fake move |
|
Volume
divergence + EMA crossover opposite |
Perfect
reversal setup |
Master Entry Formula (Simple)
Only trade when all 3
match:
1. Trend direction (20/50 EMA)
2. Volume confirmation
3. Candlestick entry pattern
This gives 70–80% accurate entries.
If You Want, I Can Create:
A complete strategy blueprint
Or a Pine Script indicator with:
·
Volume
Divergence
·
EMA
Signals
·
Buy/Sell
Alerts
Just tell me MT4 / MT5 / TradingView.
How to best trade currancy
pair in volume forex trading?
Here is a simple
and highly effective way to trade currency pairs using volume in forex trading, even though forex uses tick
volume (not real
centralized volume). Tick volume still works extremely well because it shows how
active the market is.
Best
Way to Trade Currency Pairs Using Volume (Step-by-Step)
Below
is a complete strategy using Volume + Market Structure + Moving
Average.
1. Identify Trend Direction (Use 50
EMA or 100 EMA)
·
Price above 50 EMA → Uptrend → Look for
Buy
·
Price below 50 EMA → Downtrend → Look for
Sell
This
keeps you on the correct side of the market.
2. Analyze Volume to Confirm Strength
Use
volume to understand the strength behind price moves:
High Volume = Strong Move
·
Strong
buyers or sellers active
·
Trend
continuation likely
Low Volume = Weak Move
·
Trend
losing power
·
Reversal
or pullback likely
3. Best Volume Patterns for Entry
A.
Volume Breakout Entry
Buy setup:
1.
Price
above 50 EMA
2.
Consolidation
(sideways movement)
3.
Breakout
candle with high volume
Sell setup:
1.
Price
below 50 EMA
2.
Consolidation
3.
Breakout
candle with high volume
This
works best on:
EURUSD,
GBPUSD, XAUUSD, USDJPY
B. Volume Divergence Entry (Very
Accurate)
A
strong signal:
Price makes higher high
Volume makes lower high
→ Weak buyers → Sell
Price makes lower low
Volume makes lower high
→ Weak sellers → Buy
This
gives early reversal signals.
C.
Volume + Pin Bar / Hammer Entry
Use
candlestick rejection with volume:
·
Hammer / Pin Bar with high volume → Strong
reversal
·
Doji with high volume → Trend change
possible
4.
Combine Volume With RSI for Best Entry
Use
RSI to time entries:
BUY
·
RSI
30–40 oversold
·
Volume
increasing
·
Price
above EMA
SELL
·
RSI
60–70 overbought
·
Volume
increasing
·
Price
below EMA
This
gives the most powerful entries.
5. Best Currency Pairs for Volume
Trading
These
pairs show the best volume behavior:
|
Pair |
Why Good |
|
EURUSD |
Most
liquid, clean volume signals |
|
GBPUSD |
Strong
volume spikes, smooth trends |
|
XAUUSD (Gold) |
High
volatility, strong volume breakouts |
|
USDJPY |
Very
technical, respects volume |
|
GBPJPY |
Great for
scalping with volume breaks |
6. Exact Entry & Exit Rules
Buy Entry
·
Price
above 50 EMA
·
Volume
rising
·
Bullish
candle or breakout
·
RSI
> 50 confirming momentum
Stop Loss: Below last swing low
Take
Profit: 1:2 or
1:3 RR
Sell Entry
·
Price
below 50 EMA
·
Volume
rising
·
Bearish
candle or breakout
·
RSI
< 50 confirming momentum
Stop Loss: Above last swing high
Take
Profit: 1:2 or
1:3 RR
If you want, I can also give you:
·
Volume
+ MA Strategy in Pine Script
·
Complete
PDF cheat sheet
·
Live
chart examples
·
Best
settings for MT4/MT5 volume
Would you like that?
