Introduction

Welcome to the final core indicator in this chapter! You've learned candlesticks, moving averages, RSI, and MACD. Now it's time to add Volume—one of the most important, yet most overlooked tools.

"How many people are actually participating in this move?"

Think of Volume Like Fuel

Price tells you WHAT happened (did it go up or down?)

Volume tells you HOW STRONGLY it happened (were many traders involved, or just a few?)

Why this matters: A move with high volume has conviction—many traders participating. A move with low volume is weak—might reverse easily.

What Does Volume Represent?

Volume represents the number of units traded during a specific time period (one candle).

Simple Understanding:

  • High volume = Lots of trading activity. Many buyers and sellers participating
  • Low volume = Little trading activity. Few buyers and sellers participating

Green bars = high volume | Red bars = low volume | Gray bars = average volume

Volume as Confirmation

Strong move + High volume = More trustworthy (has participation and conviction)

Strong move + Low volume = Suspicious (lacks conviction, might reverse)

Critical Difference: Crypto vs Forex Volume

Here's where things get interesting: Volume works differently in crypto and forex markets.

Crypto Volume (Real, Actual Volume)

In crypto markets, volume is real and reported. When you trade on exchanges (Binance, Coinbase, Kraken), every transaction is recorded:

  • How many Bitcoin were bought
  • How many Ethereum were sold
  • Exact quantities traded

This data is public and accurate. When you see volume on BTC/USD or ETH/USD, you're seeing the actual number of coins traded.

Forex Volume (Tick Volume, Not Real Volume)

In forex markets, things are different and more complicated.

The problem: Forex is a decentralized, over-the-counter (OTC) market. There's no single exchange. Trades happen through banks, brokers, financial institutions, and private deals. Because there's no central exchange, there's no way to track total volume worldwide.

What TradingView shows you: Since real forex volume doesn't exist (or isn't publicly available), platforms show "tick volume" instead.

What is Tick Volume?

Tick volume is a proxy for activity. It doesn't show exact amount traded—it shows the number of price changes (ticks) during a time period.

Every time price changes (even by 0.0001), that's one "tick." More price changes = higher tick volume.

What Tick Volume Does NOT Tell You:

  • How many lots were traded
  • The exact size of transactions
  • The real buying/selling volume

What Tick Volume DOES Tell You:

Relative activity. If today's tick volume is much higher than yesterday's, it means more trading activity is happening—even if you don't know exact quantities.

Crypto vs Forex Volume Comparison

Feature
Crypto Volume
Forex Volume (Tick)
What it shows
Actual units traded (real volume)
Number of price changes (tick count)
Accuracy
Exact and reliable
Proxy/estimate only
Use case
Trust the numbers
Use for relative comparison
Source
Centralized exchanges
Decentralized OTC market
Key Takeaway

Crypto volume: Real and trustworthy

Forex tick volume: Useful for comparing activity, but not exact

For both markets: Volume is most useful when read relatively—compare today's volume to recent days.

How to Read Volume: 5 Key Scenarios

1
High Volume + Strong Move
Conviction Signal
What you see: Price makes a strong move (big green/red candle) + Volume much higher than average
What it means: Many traders participating. The move has conviction and strength. More likely to continue.
Trader's takeaway: This is a high-probability move. The move has fuel.
2
High Volume + Small Move
Battle or Exhaustion
What you see: Price moves very little (small candle body) + Volume much higher than average
What it means: Lots of trading but no clear winner. Buyers and sellers battling. Signals indecision or potential reversal.
Trader's takeaway: Be cautious. High volume without movement can signal exhaustion.
3
Low Volume + Strong Move
Weak Move
What you see: Price makes a strong move (big candle) + Volume much lower than average
What it means: Few traders participating. The move lacks conviction. More likely to reverse or fail.
Trader's takeaway: Be skeptical. Moves with low volume often lack follow-through.
4
Breakout + High Volume
Trustworthy Breakout
What you see: Price breaks above resistance/below support + Volume spikes significantly
What it means: Strong participation. Many traders entering in breakout direction. More likely to be real (not fake-out).
Trader's takeaway: High-volume breakouts are more trustworthy. Strong signal to consider entering.
5
Breakout + Low Volume
Fake-Out Risk
What you see: Price breaks resistance/support + Volume is average or below average
What it means: Lacks participation. Few traders convinced. More likely to be false breakout—price may reverse.
Trader's takeaway: Low-volume breakouts are risky. Wait for confirmation before entering.

How to Add Volume in TradingView

Click "Indicators"

At the top of the chart, click the "Indicators" button (fx icon)

Search for Volume

Type "Volume" in the search box

Add to Chart

Click on "Volume". Volume bars will appear at the bottom of your chart (below price candles)

Read the Bars

Green bars = volume during bullish candle | Red bars = volume during bearish candle | Bar height = relative volume amount

Volume Doesn't Count Against Your Limit!

Volume doesn't count as one of your "2 indicator" limits on the Basic plan—it's a standard chart feature. This means you can have Volume + 2 other indicators on the same chart!

Recommended: Add Volume to both Template A (Trend) and Template B (Momentum)

🎉 Congratulations! All Core Indicators Mastered!

You've completed all SIX core tools for technical analysis. You now have the complete foundation every successful trader needs!

âś“ Candlesticks
âś“ Moving Averages
âś“ RSI
âś“ MACD
âś“ Volume

In the next lessons, you'll learn how to combine these tools for powerful analysis—because that's where the real edge comes from.

Continue to Section 7

Practice Task

Before moving forward:
  • Open TradingView and go to BTC/USD daily chart
  • Add the Volume indicator to the chart
  • Which days had the highest volume? What happened to price?
  • Can you find a high-volume breakout? Did it continue or fail?
  • Can you find a low-volume move? Did it reverse?
  • Switch to EUR/USD (tick volume). Compare bars relatively
  • Update your templates to include Volume
Reflection Questions
  • Why is a breakout with high volume more trustworthy than one with low volume?
  • What's the difference between crypto volume and forex tick volume?
  • How can you use volume to spot potential exhaustion or reversal?