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In forex trading,
because of panic-driven selling volume often increases just prior to market bottoms which usually happen during consolidation periods where prices move sideways in a trading range. |
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| Low volume
also often appears during the indecisive period during market bottoms. |
In forex trading,
there is a majority of low volume levels during consolidation periods. This happens due to the indecisive expectations during consolidation periods, when prices shift sideways within any narrow strading range.
Also low volumes may appear during market bottoms, another "indecisive period".
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Volume in forex trading
can also be useful in defining the health of an existing trend. A healthy up-trend should have higher volume on the upward motion of the trend, and lower volume on the way down.
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A healthy lower volume
on the upward corrective legs and downtrend usually has higher volume on the downward legs of the trend. In forex trading,we advise you to test this indicator in demo account trading before using it in real account.
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