How to Use Forex Volume Indicators

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Forex Volume Indicators
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Forex Volume Indicators
One of the main indicators of the market
transactions is the Volume of transactions. The
Volume of finished transactions is characterized
by an active involvement of participants in the
market, its strength and intensity. Volume
increases together with a steady uptrend when the
price rises, and, hereby, decreases when the
price falls. The same happens with a downtrend,
the volume increases when the prices fall and
decreases as the prices rise. One of the main
features of Volume is that it is always a little
ahead of price. In forex market, as a rule, there
is no way of showing the direct volume of
transactions, thats why an indicator called
"Volume", is constructed, which reflects the
number of price changes (ticks) during one bar.
This indicator shows the activity of price
changes and it is believed that this activity
well correlates with real volume of
transactions. To learn more
visit http//www.ifcmarkets.com/en/ntx-indicators
/oscillators
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Accumulation/Distribution Indicator

• Acceleration/Deceleration (AC) Oscillator

Accumulation/Distribution is a volume-based
technical analysis indicator designed to reflect
cumulative inflows and outflows of money for an
asset by comparing close prices with highs and
lows and weighting the relation by trading
volumes. The Accumulation/Distribution line is
used for trend confirmation or possible turning
points identification purposes. A/D(t)
((C L) (H C)) / (H L) x Vol
A/D(t-1),whereA/D(t) current
Accumulation/Distribution valueA/D(t-1)
previous Accumulation/Distribution valueH
current highL current lowC close
priceVol volume. To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/accumu
lation-distribution
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
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Money Flow Index (MFI) Indicator

• Acceleration/Deceleration (AC) Oscillator

Money Flow Index (MFI) is a technical indicator
developed to estimate money inflow intensity into
a certain asset by comparing price increases and
decreases over a given period, but also taking
into consideration trading volumes. The
indicator can be used to identify whether an
asset is overbought or oversold, as well as to
determine possible turning points. 1. TP
(H L C) / 32. MF TPVol3. MR Sum(MF)
/ Sum(MF-)4. MFI 100 (100 / (1
MR)),whereTP typical priceH current
high L current low C close price  To
learn more visit http//www.ifcmarkets.com/en/nt
x-indicators/money-flow-index
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
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On-Balance Volume (OBV) Index Indicator

• Acceleration/Deceleration (AC) Oscillator

On-Balance Volume (OBV) is a cumulative
volume-based tool intended to show the relation
between the amount of deals and assets price
movements. The On-Balance Volume line is used
for trend confirmation or possible turning points
identification purposes. Trend confirmation An
uptrend in prices is confirmed if the line is
rising A downtrend in prices is confirmed if the
line is falling. Divergence pattern
analysis Rising OBV line along with decreasing
prices indicates the downtrend may be weakening
to a bullish reversal Falling OBV along with
rising prices indicates the uptrend may be
weakening to a bearish reversal. OBV(t)
OBV(t-1) Vol, if C(t) gt C(t-1)OBV(t)
OBV(t-1) Vol, if C(t) lt C(t-1)OBV(t)
OBV(t-1), if C(t) C(t-1),wheret current
periodt-1 previous periodC close
priceVol volume. To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/on-bal
ance-volumes
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
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Forex Volumes

• Acceleration/Deceleration (AC) Oscillator

Volume is a technical analysis tool, which
reflects trading activity of investors for a
given time period. Usage The indicator is
generally used together with price analysis to
confirm trend strength or highlight its weakness
and therefore identify possible upcoming
reversals. Trend confirmation Rising trading
volumes during an uptrend confirms bullish
mood Rising trading volumes during a downtrend
confirms bearish mood. Trend weakness If volumes
are falling while prices are increasing, that may
be a sign of uptrend weakness, as demand for the
asset may cease at higher prices. Volume
total value/number of transactions during a given
period. To learn more visit
http//www.ifcmarkets.com/en/ntx-indicators/volume
s
THESE INSTRUMENTS GREATLY ENLARGE THE
POSSIBILITIES OF CREATING TRADING STRATEGIES AND
DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY
ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE
TO THE NATURE OF EACH ASSET PRICING, "GOLDEN
INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND
SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE
SIGNALS FOR OPENING A RISK-BASED BALANCED
POSITIONS.
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