What it is
Volume is the amount of trading in a candle. On exchange markets such as futures and crypto it is the number of contracts or coins traded. On forex and CFD charts it is usually tick volume, the number of times the price changed, which rises and falls with real activity.
The indicator has no settings to tune: each bar is that candle's volume. Its value comes from comparison: is this candle busier or quieter than the ones before it?
How it is calculated
For each candle, the bar height is the total volume traded (or the tick count) during that candle. The bar is coloured green if the candle closed at or above its open and red if it closed below.
How to read it
How to trade it
- 1
On a 5 minute US30 chart, mark a range from the first hour of the New York session.
- 2
Entry trigger: a candle closes above the range high with volume clearly higher than the last 20 candles' average. Enter on the close.
- 3
Stop below the middle of the range or below the breakout candle's low, often 25 to 50 points on US30 at 5 minutes.
- 4
Target the range height added to the breakout level. If the following candles push higher on falling volume, take profit early.
A close back inside the range within a few candles, especially if the breakout volume fades straight away, cancels the breakout.
On WickSpeak, volume writes a plain-English reading on the live candle: whether this candle is busy or quiet compared with recent ones, what that says about the move, how to trade it and what would prove it wrong. In Playbook you can test whether volume is above or below its own average, or rising or falling. Playbook also has an activity condition for plays that should only trigger when the market is busy.
Best markets and timeframes
Most reliable on exchange traded markets such as index futures and crypto, and still useful on gold, US30 and NAS100 CFDs. Clearest on 1 to 15 minute charts around session opens.
Common mistakes
- Comparing tick volume between two different brokers; it is only comparable on the same feed.
- Reading one big volume bar without looking at whether price closed with it or against it.
- Expecting volume to tell direction on its own. It shows effort, not which side wins.
Works well with
Questions traders ask
What is tick volume?
Tick volume counts how many times the price changed during a candle. Forex and CFD brokers use it because there is no central exchange volume, and it rises and falls with real activity.
Is high volume bullish or bearish?
Neither on its own. High volume shows strong participation; the direction comes from the candle. High volume on a strong up close is bullish, on a long upper wick it can be the opposite.
How do you confirm a breakout with volume?
Look for the breakout candle's volume to be well above the recent average, for example 1.5 times or more. Relative volume shows that ratio directly.
Does volume matter for gold?
Yes. Gold's volume, even as tick volume, jumps around the London and New York opens and on news, and breakouts are usually stronger during those busy hours.