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Home / Forex Indicators / Volume Oscillator
 
The distinction between 2 moving averages of volume in forex trading is the factor which the Volume Oscillator uses.
   
Due to it helps to define if the whole volume trend is rising or falling.

When the Volume Oscillator in forex trading moves above zero the shorter-term volume MA has risen above the longer-term volume MA.


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This means that the short-term volume trend is higher - for example, has more volume - than the longer-term volume trend. In forex trading,falling prices coupled with decreased volume and bullish signals start from increasing prices coupled with increased volume.
 
 
Thus, if volume in forex trading shifts upwards as prices fall, or volume decreases as prices rise, the market is considered to be showing signs of basic weakness.

This strategy in forex trading is based on the factor that rising prices coupled with increased volume means more buyers which in future lead to an enduring move.

 

Also falling prices coupled with rising volume provide fewer buyers.

 
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