Take you to understand the secret of trading volume in one hour!

The Volumes volume indicator in the MT4 software is the object of today's research.

Trading volume is a rough indicator. It is an indicator displayed by the MT4 platform after the long and short trades are successfully matched once. Remember, it only shows the number of matchings here, not the contract value of the matching. There is also a variable in the number of transactions, which is what the industry calls slippage. Simply put, due to the serious imbalance between long and short, no one on one side is willing to provide enough traffic. At this time, as the bottom of the foreign exchange market, we , the trading volume obtained with MT4 is the worst. We may not even be able to buy traffic to match our orders, so we will trade at a worse price, and there will be slippage. This is not important for our research today. But it is also an important factor in the formation of trading volume. We study it from the number of transactions per unit time to find out whether the market is more competitive or more uniform within a unit time.

Further explanation: A relative conclusion can be drawn from the above figure. Therefore, when we use the trading volume, we must choose a large difference, the bigger the better, because the trading volume is processed information, and it will be displayed differently due to different platforms. Therefore, smaller differences will be unreliable. It is also a slightly subjective indicator.

Applying the above, there will be a positional relationship, that is, the relationship between the front and the back.

It can be seen from the above figure that after obtaining the change of the trading volume per unit time, and then obtaining its position, a relative conclusion can be drawn. Can it be traded immediately? The answer is yes and no! It also needs the support of an argument, that is, the agreement reached after the game is reliable, and the agreement reached suddenly without multi-party consultation is unreliable, but it can show a strong or weak position, and you can make a Strong and weak list. The difference lies in the nature of the opportunity. It is the result of the impact of market emergencies, and has no necessary relationship with the conclusion corresponding to its position (this sentence must be understood well).

An important point that needs to be explained is: the amplitude per unit time referred to here includes the shadow line of the k-line. That is to say, the price that has been on the K line is counted. This is very important, and it is a condition for complete sampling! ! !

Let's find some examples below!

The specific use of trading volume will be related to its environment, positional relationship, and other formation methods such as trapezoidal volume. Can't say enough in one article. Friends can take a look at it as a single point of knowledge. If you are interested, you can raise your doubts in the review. Communicate one by one. If there are more friends who are interested, I can publish another answer article in a targeted manner. Because it is not easy to review continuously, I will not give many examples.