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Volume is the key to success in any market.

Volume is the key to success in any market.

 

 

Many believe that volume indicators give an accurate indicator on the trading chart. But I will say right away that an ordinary trader will never know about the real trading volume. This information is simply not available to him. And now the question: Why is the information about the real volume kept a big secret? The answer is: Real trading volumes are the basis of any market. And the one who knows the real volume owns this market. That's just a huge advantage. But beginner traders not only do not know this information, they do not even pay attention to the approximate trading volumes at their broker. And this is a huge disadvantage for them.

 

We all look at the volume indicator, which the indicator gives us. It's a simple indicator, which is included in the set of standard developments. But what it gives us. All we can see is the approximate trading volume at our broker. In addition, beginners do not understand the huge role of volumes, and do not even take them into account at the stage of currency market analysis. Instead, the trader starts looking for some algorithms and formulas, which will help to make trading profitable. And even if he pays attention to the trading volumes, he will immediately start looking for the relationship between the volume and the current price. But it is possible to try to reveal this correlation for weeks. Anyway, it is not there. Few traders know that the market can continue its growth on a huge volume and turn around on a small volume. It goes against the trader's logic. It is necessary to remember that on one volume indicator the market can be in three states: rise, fall, flat. But all we can get out of it is that with a large volume, we should expect the intervention of a market maker. At low volume, there's no point in him interfering with the trade. The market at this time belongs to the sellers and the buyers. Those who work only on volume indicators know that trading on volumes is not based only on accumulation of volume at the nearest price levels. The volume indicator changes quite quickly even between levels. Professionals in the person of a market maker do not always wait for the accumulation of volume near the level. A professional can enter the market at any moment when he sees the benefit.

 

When looking at the quotes on Forex resources, very often you can see one characteristic feature. Namely, the statement that the market is made by buyers and sellers. This simple statement greatly affects the thinking of a novice trader. He literally grasps at this thought, and no longer thinks about anything else. But let's look at the chart and try to find straightforward price movements. They are gone. The market would be straightforward only if the currency was sold and bought at only one price. The rest of us would also buy and sell at a fixed price. But when we enter the market, there are already quite a few open orders. Yes, the market can be hung up for quite a while. But exactly until the orders are executed. But if the volume of sell orders exceeds the volume of buy orders, the price will take the market out of this state. The market has never had a balance, and it will not. Buyers and sellers constantly place orders at different prices. And the volumes of these orders are constantly changing. It's not as simple as it seems at first sight.

 

We often hear about large volumes being thrown into the market. This means that at this moment, strong markets began to trade with each other. But they do not consider past movements as a starting point. First of all, the current price, and the price after analysis. This is all they are guided by. But it does not mean that they will let us make a big profit. They pursue their goals, but they take the rest out of the market along the way. After all, they're looking at a real volume indicator. Volume is the basis of trading, and everyone should remember that. Any accumulation of orders near the price level should alert the trader. If there is no real information about the volume, we have to be satisfied with what we have at hand.

 

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