Volume [theEccentricTrader]

OVERVIEW


This indicator simply bridges the gap between symbols from brokers that provide volume data and symbols from brokers that do not provide volume data. Users can select any symbol that provides volume data from the settings menu and the volume data will be displayed in histogram form on their current chart. The default volume symbol is CURRENCYCOM:US500.


CONCEPTS


Volume

Volume refers to the total number of shares or contracts that are traded during a given period of time. It is a measure of the amount of activity in the market and can be used to gauge the strength or weakness of a particular trend.

Volume is typically displayed as a histogram on trading charts, with each bar representing the total volume for a particular time period. High volume bars indicate a lot of trading activity, while low volume bars indicate relatively little trading activity.

Traders use volume in a number of ways. For example, they may use it to confirm a trend. If a stock is trending up and the volume is also increasing, this can be seen as a sign that the trend is strong and likely to continue. Conversely, if a stock is trending down and the volume is also increasing, this can be seen as a sign that the trend is weak and may be coming to an end. Volume can similarly be used to identify potential reversals. If a stock is trending up but the volume starts to decrease, this could indicate that the trend is losing momentum and that a reversal may be imminent.


FEATURES


Inputs

• Volume Symbol

Style

Users can change plot color and style from the default Style menu if so required.


NOTES


For 24-hour markets and forex volume I use the broker currency.com. As can be seen in the example above, I am using $CURRENCYCOM:USDJPY to pull volume to a USDJPY chart, which otherwise would not show volume data as forex.com do not provide it.