Introduction to Volume

After price itself, volume is arguably the second most important data point within a market. Transactions and the resulting volume is ultimately what dictates the direction of price.

Crucially, volume often indicates the level of market participants' interest, which is then reflected the total value of assets (or contracts) that were transacted. This is also often indicative of buying and selling pressure, particularly at key support or resistance levels.

Volume Elements

Whilst the volume indicator may appear familiar to most, there are a few distinct difference that you may discover are different from traditional 'Volume' you may have used elsewhere. In this section we will examine these difference so you are comfortable with this vital tool.

Upon each new candle, the total value of market buys and the total value of market sells are monitored and recorded. From these 2 data points, the following information is rendered as histogram places at the bottom of your price chart:

Height - Total Volume

The height of each bar of the Volume histogram indicates the sum of both market buy volume and market sell volume. This equates to the total volume. The higher the height of the bar within the histogram, the higher the total volume that was transacted in that time-frame.

Market Buy Volume

Forming the lower part of each bar within the Volume histogram, is the total value of market buy volume. By default, this will be shown in green.

Market Sell Volume

Forming the upper part of each bar within the Volume histogram, is the total value of market sell volume. By default, this will be shown in red.

Buy/Sell Volume Split

You will notice that the split of Market Buy (green) and Market Sell (red) of each bar, can vary. This illustrates comparison of buying and selling activity.

• An equal 50/50 split of color signifies there was an equal balance of both market buy volume and market sell volume.
• An unequal spilt would indicate there was a dominance of either market buys or market sells. Visually, the measure of dominance will be indicated by the split itself. A very unequal split would show that the respective buy or sell side were far stronger than the opposing pressure.

Activating the Volume Layer

Found within 'Indicators' click on 'Volume' to activate the indicator. This will be anchored to the bottom of your main price chart.

Volume Configuration & Settings

Two simple configurations are present:

Bull Color

This is the color used to indicate Market Buy Volume. By default this is set to green.

Bull Color

This is the color used to indicate Market Sell Volume. By default this is set to red.