HOW TO TRADE FOREX WITH VOLUMES INDICATOR ~ forex trading is a job or business now
Volumes indicator is such an indicator that is very often overlooked by the beginners in forex trading. This post is written to explain the importance of volumes indicator to improve the forex trading skills. Volume indicates the units of a currency traded in a given period of time.
Generally, volumes do not give any entry or exit signals, or do not indicate trend reversal or continuation, rather it explains the strength of the trend, reversal, and breakout.
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Analyzing the volume information, trader can predict the probable move of the currency pair with a given period of time and fundamental condition. Most effectively, with volumes trader can determine the reliability of any breakout e.g. chart pattern breakouts, Fibonacci line breakouts, trend line breakouts, and support and resistance level breakouts. In addition, volumes can indicates the strength of the reversal from a support or resistance level.
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In the above image, a breakout in ascending triangle pattern is supported by a high volume turnover.
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In the above image, a breakout in rising wedge is supported by the rising volume turnover. Similarly, trend line breakout, channel breakout and all other breakouts should be supported by the high volume turnover to be ensured as reliable.
Dear trades, these are the basic things about trading with volumes indicator. If you have any other techniques of using volume indicator share it with other traders, dropping a comment bellow. You can even mention me on twitter @albab247.
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