I only use 2. These are also fully explained in my course and I also think it is very important that everyone learns to use them correctly because these are probably the only indicators that can allow you to trade Supply and Demand successfully. I mean it can be a very useful tool. Today I am going to give you a little more explanation which indicators I use and also recommend to use as an extra conformation when you want to enter a trade.

Volume profile is 1 of the indicators that I recommend to use and especially if you are a Supply and Demand trader this is a very handy tool. The most important thing this indicator shows is the POC. See that red line? I will tell you if you just use the POC in your trading you will definitely become an even better trader. But what exactly is the POC and why is it so important?

POC means Point Of Control and it is important because it shows us at which point the most trading took place. Where the biggest trading positions were accumulated. But who accumulates these large trading positions? The big boys! And when I talk about the big boys I am of course talking about the banks, hedge funds etc. We all know these big guys are moving t he market and. So to have an insight into that, we can use the volume profile where we can see the POC. In short, the POC is where the big boys are.

Gaining an understanding of the different applications of the volume indicator in trading can help you improve your results. The Chaikin Money Flow indicator can also be used to confirm the strength of a breakout.

If the CMF volume reading is above zero when we break a resistance that is viewed as buying pressure. In this case, the breakout has higher chances of success. Conversely, if the CMF volume reading is below zero when we break a support level that is viewed as selling pressure. We can also use the CMF volume readings to spot false breakout signals. If we break above resistance but we have negative readings on the CMF indicator that is a potential false breakout. Conversely, if we break below a support level but we have positive readings on the CMF indicator that is a potential false signal.

Usually, in both rising and falling markets during the last stage of the trend, we can see spikes in volume and volatility. These are trade secrets that you wish you had been taught. The Chaikin indicator will dramatically improve your timing and teach you how to trade defensively. Before we go any further, we always recommend taking a piece of paper and a pen and take notes of the rules of this entry method.

You can also read a million USD forex strategy. Volume trading requires you to pay careful attention to the forces of supply in demand. Volume traders will look for instances of increased buying or selling orders.

They also pay attention to current price trends and potential price movements. Generally, increased trading volume will lean heavily towards buy orders. These positive volume trends will prompt traders to open a new position.

You also need to pay attention to the relative volume —regardless of the raw number of transactions occurring in a trading period. Ask yourself how is the prospective asset performing relative to what was expected? When the Volume goes from negative to positive in a strong fashion way it has the potential to signal strong institutional buying power.

When the volume indicator Forex goes straight from below zero to above the zero line and beyond, it shows accumulation by smart money. Chances are that institutions have more money and more resources at their disposal. Odds can be stacked against you, so if you want to change that, just follow the smart money.

Once we spot the elephant in the room, aka the institutional players, we start to look for the first sign of market weakness. Here is how to identify the right swing to boost your profit.

Second, as the volume decreases and drops below the zero level, we want to make sure the price remains above the previous swing low. This will confirm the smart money accumulation. The Volume strategy satisfies all the required trading conditions , which means that we can move forward and outline what is the trigger condition for our entry strategy.

Now that we have observed real institutional money coming into the market, we wait for them to step back in and drive the market back up. When the Chaikin indicator breaks back above zero, it signals an imminent rally as the smart money is trying to markup the price again.

We would need to wait for the candle close to confirm the Chaikin break above the zero line. Here is an example of a master candle setup. This brings us to the next important step. We need to establish the Chaikin trading strategy which is finding where to place our protective stop loss. Never underestimate the power of placing a stop loss as it can be lifesaving. Never use a mental stop loss, and always commit an SL right the moment you open your trades.

Trading with a tight stop loss can give you the opportunity to not just have a better risk to reward ratio, but also to trade a bigger lot size.

Last but not least, we also need to learn how to maximize the profits with the Chaikin trading strategy. Once the Chaikin volume drops back below Use the same rules for a SELL trade — but in reverse. In the figure below, you can see an actual SELL trade example. Any market moves from an accumulation distribution or base to a breakout and so forth. This is how the markets have been moving for over years. Smart money always seeks to mask their trading activities, but their footprints are still visible.

We can read those marks by using the proper tools. Here is another strategy on how to apply technical analysis step by step. Make sure you follow this step-by-step guide to properly read the Forex volume. The Chaikin indicator will add additional value to your trading because you now have a window into the volume activity the same way you have when you trade stocks.

Please leave a comment below if you have any questions about the volume indicator Forex! Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders! We specialize in teaching traders of all skill levels how to trade stocks, options, forex, cryptocurrencies, commodities, and more.

Our mission is to address the lack of good information for market traders and to simplify trading education by giving readers a detailed plan with step-by-step rules to follow. Is there a time limit on how fast the smart money build up should be? In your example it only takes a few days. Would a run up of say weeks still be a valid signal? It's shows good , but maths is applicable market, company and is business in and exit or stay safe for future.

This step-by-step guide will show you an easy way to trade with the MACD indicator. Get the free guide by entering your email now! Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page. You can take advantage of analyzing the strength of a trend based on volume activity. The Forex market, like any other market, needs volume to move from one price level to another. Table of Contents hide.

The price needs to remain above the previous swing low. Wait for the candle to close before pulling the trigger. Decreased Volume before a breakout. List of Volume Indicators. Or that there is a bigger indication that price is breaking through the zone.

It is a handy tool and can always give you more confirmation of a possible trade. And sometimes also give an indication in advance which way the price could possibly go. If you are already a member of the forex scalpers community, I will certainly recommend that you read the chapters about volume very carefully and apply them in your trading.

Are you not yet a member of the forex scalper community and do you want to know all the ins and outs about trading Supply and Demand in combination with the use of the volume bar? Then you can always join the course, I have explained everything clearly and step by step. Do you want to become Success Supply and Demand Trader or want to know how to trade?

How to use volume in Forex Trading? If you are a beginner trader and to become a good professional forex trader. Want to know more about How forex leverage works? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which are already traded and tested by thousands of TFS members and performs daily trades.

TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker.

by theforexscalper Dec 10, Forex Education , Forex strategy 0 comments. Is it important to use a volume indicator when trading forex?

I personally think this is very important to know if and when there is enough volume on the market to be able to make a good trade. For that reason alone, the use of a volume indicator is very important. There are several volume indicators you can use and we have plenty to choose from. I only use 2. These are also fully explained in my course and I also think it is very important that everyone learns to use them correctly because these are probably the only indicators that can allow you to trade Supply and Demand successfully.

I mean it can be a very useful tool. Today I am going to give you a little more explanation which indicators I use and also recommend to use as an extra conformation when you want to enter a trade.

Volume profile is 1 of the indicators that I recommend to use and especially if you are a Supply and Demand trader this is a very handy tool. The most important thing this indicator shows is the POC. See that red line? I will tell you if you just use the POC in your trading you will definitely become an even better trader.

But what exactly is the POC and why is it so important? POC means Point Of Control and it is important because it shows us at which point the most trading took place. Where the biggest trading positions were accumulated. But who accumulates these large trading positions?

The big boys! And when I talk about the big boys I am of course talking about the banks, hedge funds etc. We all know these big guys are moving t he market and. So to have an insight into that, we can use the volume profile where we can see the POC.

In short, the POC is where the big boys are. The big boys who move the market. I think you can now imagine that you can make much better trading decisions by using this indicator. Okay, I have already shown and explained the most important indicator above. But there is another volume indicator that I sometimes use in my trading. I mainly use the volume indicator to see if there is enough volume on the market when I want to take a trade.

If this matches so I mean large volume when the price is at a Supply or Demand zone this gives me an extra conformation for a possible buy or sell. This can also help you not to enter a trade that goes into consolidation. Because the lower the volume , the greater the chance that price goes into consolidation. And the higher the volume, the faster the price often moves. You can also easily spot possible fake outs or a change in the trend with this indicator.

This is too much to explain in this blog but of course I also explain this completely in my course. I hope I was able to help some of you with this blog to become even more successful in the forex market. So if you are a beginner trader and to become a good professional forex trader. Want to know more about forex volume indicators?

The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones. Which are already traded and tested by thousands of TFS members and performs daily trades. To become profitable from Beginner Trader and most successful Scalping trader in Supply and Demand.

Which boosts your trading skills make you Professional Forex Market Trader. TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker.

They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options. Your email address will not be published. Looking for a Trusted Regulated Broker? Join IC Market. Please follow and like us:. Submit a Comment Cancel reply Your email address will not be published. Search for: Search Button. Categories Forex Education 64 Forex general 53 Forex strategy 44 Forex trading Geen categorie Risk Management 8 Technical Analysis.

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One particular situation in which they can be helpful is when a market has been in a trend, up or down, for quite some time. In the image above we see a nice Supply zone where the price comes for the first time. In the figure below, you can see an actual SELL trade example. Please follow and like us:. a Volume increases compared to the day before but closing prices are lower b Price hardly moves up, even though volume has increased. Thank you for sharing the details about Forex Strategies Reply.

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