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Volume Indicator Trading Part 1

600 ratings | 25319 views
Wondering how to include Volume into your trading? With this guide you'll get the three most important components of volume based trading: 1. How is Volume represented 2. What does Volume actually mean 3. How to make trading decisions based on it In this video we start with the theory about trading Volume and its most basic building blocks, so that you can get a firm grasp of it before we move on the wide range of volume based trading indicators that are available in the Trading 212 platform. Part 2 coming soon but if you have any questions you can share them in the comments and we'll try and get back to you. At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.
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Text Comments (62)
TheMaritimer1 (7 months ago)
Great video David. You may not have the drawings down pat but your explanations are very clear. Cheers and thank you.
Harvey Holloway (1 month ago)
This is the first time I have looked at the volume indicator. It seems much the same as the macd histogram.
Luis Bustamante (1 month ago)
Thank you, really iseful. Do volume indicators update in real time or is it a lagged indicator? Thanks again
Luis Bustamante (1 month ago)
+Trading 212 thanks
Trading 212 (1 month ago)
Hi Luis, the volume indicators update in real time.
Dont Lie Tell The Truth (2 months ago)
So here he is doing a video telling us all how volume can be so beneficial. Yet he doesnt even use it himself! I smell a rat.
Sergio Bokancha (3 months ago)
Thank you for a nice educative lesson Dave. Would you please elaborate on some specifics about what exactly the tick volume bar represents?? specificaly in currency markets! What kind of amount it shows (volume number)? Thank you!
Trading 212 (3 months ago)
Sergio, please feel free to start a live chat to further elaborate on the topic with a customer care representative - www.trading212.com/en/Contact?startchat.
Sergio Bokancha (3 months ago)
David I still have a hard time to get the bottomline idea of tick data with relation to currency market. Please explain what shall we consider as a main cause of the incremental price change (e.i. 1 tick)?. Thank you very much for the following explanations )
Trading 212 (3 months ago)
The smallest action counted as price change for a certain trading instrument is considered to be a change in the last digit of its respective price.
Sergio Bokancha (3 months ago)
to be more specific with my question: does it mean that one change in price (i.e. one tick) is equal to 1000 units (1 micro lot) of actual order !?
Trading 212 (3 months ago)
Hi Sergio, the tick volume shows how many times the price has changed for the given time period.
Lūmi Zainabu (5 months ago)
Your videos are by far the clearest and most to the point no fluff that I've seen. As I'm learning to trade. Is the Trading 212 pro platform available for use in the U.S.? Or is it only for ppl living in the UK?
Trading 212 (5 months ago)
Your kind words are very much appreciated. Delighted to see you like the trading app. However, those are the regulations.
Lūmi Zainabu (5 months ago)
Aww :-( . Well thank you for the reply. Do you have a recommended platform that resembles something close to the 212 platform. It looks so clean cut and organized and user friendly. Especially when following along in your videos! Thanks again, keep up the great no fluff content!
Trading 212 (5 months ago)
Hi Lūmi, glad to see you enjoy the videos. Due to the regulations, the US residents are not eligible to use the trading account's Real Money Mode. However, the Practice Money Mode is available without limitations.
vikas pratap singh (5 months ago)
Awesome video. I thought my drawing was worst. 😉
Atanas Stoyanov (6 months ago)
How can I pull out the volume indicator on my charts??? How it’s called? I am new. Please help. Thanks.
Trading 212 (6 months ago)
Currently, the volume indicators are available in the web app only.
Atanas Stoyanov (6 months ago)
Trading 212 Is this possible to find at the app? And how should be called?
Trading 212 (6 months ago)
Hi Atanas, simply log in to Trading 212's web app at www.trading212.com, navigate to the Indicators section located in the toolbar above the chart and select your volume indicator of choice.
Alejandro Cabrera (6 months ago)
Hi David, I would like to understand how volumen indicator is calculate in a not centralized market like forex? are Each trading platform calculates it according to its clients? thanks in advance
Trading 212 (6 months ago)
Yes, Alejandro. The volume on Trading 212 is calculated based on the traders using the service.
David Jones (6 months ago)
Hi Alejandro. I think you are correct but I will see if I can get Trading 212 to add a bit more detail.
Rex2212 (6 months ago)
I've run many correlation studies on ETFs and individual stocks and there is no statistically significant positive correlation between price and volume. In fact, there is a statistically significant inverse correlation between price and volume - as price goes down, volume goes up, and as price goes up, volume goes down. The traditional theory is garbage.
Indresh Rao (1 month ago)
Could you please share your insightful studies with proof?
Rich Holland (6 months ago)
Very enlightening thank you.
DominikBacher (6 months ago)
These guys have a trading platform suited for this century (compared to mt4 and other brokers). And not only that, but david gives outstanding tutorials on trading! Trading 212 is like the Apple of brokers.
Crypto Bandito (6 months ago)
Surely the size of the volume bar will always be the same as size of the candle for that time-frame??
Crypto Bandito (6 months ago)
Trading 212 (6 months ago)
Hi Crypto Bandito - the two have different dimensions and are not directly correlated. A big move in price can be done with a lot of volume but the opposite is also true. That's when traders say "large move on thin volume".
Stefan Supra (7 months ago)
What about the candle to volume bar/candle relation ? Meaning when we see a big volume bar/candle but a small candle on the chart we can assume this is a failed breakout for example or a false move to get people on the wrong side on the market. What do you think ?
David Jones (6 months ago)
You do get big moves on thin volume - and small moves on large volume. I don't think every possible combination can be explained so I would never trade just off volume alone but use something else as confirmation. Nothing is 100% correct all the time.
Matthew Barker (7 months ago)
Great video!! Could you do one on the difference between hedging and aggregate trading? What's the difference and how it can help your trading?
Trading 212 (7 months ago)
Hi Matthew, thanks for your suggestion. In the meantime, you can take a look at this brief article on the topic - www.trading212.com/en/trading-modes.
Blooniverse (7 months ago)
David, you're aware of the fact (resp. common assumption) that volumes in the cryptomarket seem to be manipulated to quite a degree, aren't you?
David Jones (6 months ago)
Yes I've read the stories but what can you do? Either not trade it, or just ignore volume and base it all off the price.
Sirus Azadi (7 months ago)
Awesome post
Ashraf Jamal (7 months ago)
Rajiv Chongtham (7 months ago)
Kindly make a video on how to trade gap up or down
Gautam G (7 months ago)
Love You sir,,,,,,,, Nice video
Colin Allison (7 months ago)
Which indicators can you use for volume?
R2Reed (7 months ago)
Let your wife draw David she may help us
Air Elegant (7 months ago)
Fabian B (7 months ago)
Hi, i have to say that Volume is not an Indicator. It is a primary raw data resource, like price action.
Yoda TheCoder (7 months ago)
Thanks Dave. I like your videos and your insight is much appreciated.
Mahmood Toorani (7 months ago)
Haha, I lost it when he was honest with himself that this was his worst drawing so far. XD Cheers mate.
Bhavik Patel (7 months ago)
Make a video on ichimoku clouds... I like your explainations Mr. Jones... Always waiting to learn somthing new from you.
Richard Walsh (7 months ago)
I hope that you will cover the VWAP in this volume trading series.
Kurt Francisco (7 months ago)
i really have gained soo much from watching your videos!!
Manu vanderveeren (7 months ago)
Thanks, will part 2 come soon? :)
John Perry (7 months ago)
Could you add to this by doing a video on the VWAP oscillator, please?
Dirt Worth (7 months ago)
i can see a middle finger at the top. Maby its an short technical part.
Roland Cura (7 months ago)
How enjoyable and educative
alan watkins (7 months ago)
Great video very clear and easy to understand.thank you!
Аитор Хара (7 months ago)
Don't worry, if I was to draw it, it would be a bunch of Pisa tower's
Juan Alcantara (7 months ago)
Darren Munsell (7 months ago)
Thank you for your Video. Volume is an indicator that can be useful for noobies like me :) MacD is my main 'religion'
darkbrian ' (7 months ago)
Finally! Thank you very much Mr Jones. They do read them all!
darkbrian ' (7 months ago)
Much appreciated! Thanks again!
Trading 212 (7 months ago)
;) This one's for you
prashant chavan (7 months ago)
First comment ...212 grt

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