Volume indicator
Family VI · Charts & indicators
Not to be confused with volume, adx indicator, atr indicator.
Volume indicator is a chart element that plots the quantity traded in each period, typically as a histogram aligned with the price bars. It measures participation, not price direction, and is read alongside price action or other studies. Values are exchange- or feed-dependent and may include or exclude off-exchange trades depending on the data source.
What the bars show
Each bar represents the total traded quantity for its period — one minute, one day, or another interval chosen on the chart. A taller bar means more units changed hands; a shorter bar means fewer. The indicator does not say whether buyers or sellers were dominant, only how much activity occurred.
Common additions include a moving average of volume, which smooths period-to-period spikes, and colour coding tied to whether the price bar closed up or down. Neither changes the underlying quantity being plotted.
Worked example
The relative figure of 1.5 means today's activity is half again the recent average. It is a comparison, not a signal on its own; the same reading can accompany a breakout, a reversal or a range-bound session.
Data caveats
Reported volume varies by venue and data provider. Consolidated tape figures, single-exchange figures and forex tick counts are not equivalent, and some markets report only dealer-submitted totals. Session times, holidays and auction periods also affect the totals. For these reasons, absolute volume levels are less comparable across instruments than relative measures such as the ratio above.
Often confused with
- volume
- Volume is the raw quantity traded in a period, while a volume indicator is the charting tool that plots that quantity; the visible sign is the histogram panel itself rather than the number alone.
- adx indicator
- An ADX indicator measures trend strength from directional movement over a lookback, whereas a volume indicator measures traded quantity; the visible sign is a single oscillating line scaled 0-100 rather than bars of varying height.
- atr indicator
- An ATR indicator measures average price range over a period, while a volume indicator measures units traded; the visible sign is a price-scaled line plotted in the same units as the instrument rather than a quantity histogram.
See also
- forex technical analysis indicators
- price action
- fundamental analysis
- support and resistance
- technical analysis
- fibonacci