Volume Based Indicators

Volume Based Indicators

Unhealthy Trends
Trends in the volume
• When prices rise and volume decreases, it means that this trend will continue, prices will either increase or lower rates begin to decline.
• When prices are lower and decreases the volume, this trend is unlikely to continue for the cost or reduce a lower rate or begin to decline.

A. Mon uptrend in March, the main feature in April of USD / CAN currency pair is an extended downtrend. It begins in early April around 1.1700. The initial move down to come on strong volume, then a little shrug. Tom takes a bit for the next part of the downswing, before pausing. Then the third and last part of the decline comes even weaker volume. During the downtrend volume decreases. This is a classic example of the "unhealthy trend" and it can not last much longer.
B. At the beginning of May shows a spike in volume as bulls and bears are battling for control over the entire bottom. The battle ended without a new direction at first.
Tues The increase in volume is the beginning of the uptrend.
D. But as it continues, the volume of the currency falls and turns down. We entered at the time of consolidation.
D. Here again a slight uptrend forms of increased volume, but there is a fall with a large scale. A channel of resistance and support is formed into a true sign of consolidation.
Volume can help identify new trends or it can be used to monitor the current trend if the trader is already on the right side of the price movement.