Volume Indicator Trading Part 1

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.
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The information contained within the video was correct at the time of recording but may have since changed.
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 complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

[@andrewgrady1]

Great video David. You may not have the drawings down pat but your explanations are very clear. Cheers and thank you.

[@dominikbrs]

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.

[@aussiewatchman8112]

So clear and precise, thanks David. Nice to hear a crisp English voice after living in Australia for the past 16 years.

[@Series0Tubes]

Thanks Dave. I like your videos and your insight is much appreciated.

[@MNToor]

Haha, I lost it when he was honest with himself that this was his worst drawing so far. XD Cheers mate.

[@alanwatkins3389]

Great video very clear and easy to understand.thank you!

[@rh5060]

Very enlightening thank you.

[@bhavikpatel8577]

Make a video on ichimoku clouds... I like your explainations Mr. Jones... Always waiting to learn somthing new from you.

[@Region223]

How enjoyable and educative

[@kurtfrancisco9285]

i really have gained soo much from watching your videos!!

[@monalishasoumiksarkar8504]

Great and awesome vedio. It's very clearly mentioned everything. Nice vedio.

[@archerius2]

Awesome post

[@jesytrading9673]

Good video and very helpful however, the one thing you missed is where do we find this indicator, what's it called ??? As volume is not in the list

[@BenVowlesAEIOU]

How do I find the volume indicator on the app?

[@randomvide1]

That's what I came for too

[@Thenarayanaclips]

Thank you so much bro for helping us out. It is a cool stuff!

[@patriciaalcantaranogueirap685]

Why haven't I seen this video before?? I loved the project. I will certainly participate

[@DaGringoOnStingo]

Could you add to this by doing a video on the VWAP oscillator, please?

[@richardwalsh7528]

I hope that you will cover the VWAP in this volume trading series.

[@antoinejameson2683]

I like net volume, makes it much easier to read the sentiment wish had started using it earlier

[@franfitzpatrick3936]

Antoine Jameson hi what indicator do you use pls?

[@_darkbrian]

Finally! Thank you very much Mr Jones. They do read them all!

[@Trading212]

;) This one's for you

[@_darkbrian]

Much appreciated! Thanks again!

[@londoncinemastudio3073]

Many thanks. Is there a way to show volume with positive and negative flows in colour?

[@LaurenMartins]

When Trading212 will add something like OBV divergence so we can see it clearly?

[@peterwoods9507]

Hi Dave I realise a high price move on lower volume from the day beforehand is something investors watch out for as mentioned in your vide. As well as that when the price decreases from the day before but on higher volume could this also represent distribution or 'churning' as described by CANSLIM / ONeill investors ?? Also have you heard of investors examining a daily volume result against the average volume and could you explain how this is done - is it done over 30 days or 60 etc?

[@vikasmikado]

Awesome video. I thought my drawing was worst. 😉

[@name2103]

i like your drawings!!

[@lukecaetano8405]

Volume is great to use for reversals and false breakouts and further confirmation.

[@andrearatkovic4048]

I’m guessing ‘high’ vs ‘low’ volume is relative to a stock’s average volume?🤔. And then is average volume indicated somewhere, so people know what high and low is?

[@tatatacheese]

When you mentioned "Trading" by looking at the volume, does it mean there's a lot of interaction with the stock as in buying and selling? or does it only mean buying? or selling... like it's a one way thing only.. I think I'm overthinking a lot that I confuse myself

[@ashrafj1]

Great

[@AirElegant]

Nice

[@manuvanderveeren9027]

Thanks, will part 2 come soon? :)

[@johnalcantera3389]

Thanks

[@sebastianmullerbalcazar6229]

@Trading2012 David thank you. Can you explain what does it exactly mean in the Volume 20 indicator, the left, right volume and the fact the color changes (red volume change with closing price, blue opening price) but the right volume (always in blue) what does it mean?

[@JasMusical]

What's the difference between tick volume and real volume?? I'm a newbie at financial markets, so please help me with this term

[@matthewbarker2991]

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?

[@Trading212]

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.

[@CallumHowardFitness]

Hi, are you using Tick Volume in the example? Thanks in advance

[@gmaail...]

Kindly make a video on how to trade gap up or down

[@prashant3329]

First comment ...212 grt

[@serge8175]

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!

[@Trading212]

Hi Sergio, the tick volume shows how many times the price has changed for the given time period.

[@serge8175]

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 !?

[@Trading212]

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.

[@serge8175]

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 )

[@Trading212]

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.

[@teaciisem]

Hi, Thank you for the great video. It is simple and to the point. Since you mentioned your vast experience, I really need to know this: Is there a honest broker out there that you can recommend? All the indicators in the world don't matter if the broker is not honest. Thanks.

[@Trading212]

Hi Tarun, you may want to take a look at Trading 212. Open an account for free with virtual money at www.trading212.com/en/Practice-for-Free-GBP.

[@doglifehub]

I'm late to the party, but why would price rise hugely with no rise in volume? I'm looking at Tullow oil in early 2020 for context. I'm very new to trading and wondered what the reason for an almost tripling in price with no rise in volume might be? Thanks!

[@atata0215]

what about if the volume has red color ? it doest count should look only to green volume or it isn't matter the color

[@ColinzSnax]

Which indicators can you use for volume?

[@cardzilla8016]

what does green volume mean and what does red volume bars mean?

[@KC-zv9dj]

hello, great video!! your free trading platform for practice is not available in the US? :-( please, does any recommend another site that shows tick volume like this by the minutes, or hours for free?

[@Trading212]

Hello Kerene, the Practice Mode is available around the world, since it is completely free of charge and operates with virtual money.

[@headhunter2513]

I really struggle to see how many indicators actually work, as they are all retrospective. Of course volume is important in any market, but all these show is what it has done, nor what it will do? Love the channel by the way, but what is best method to trade the future?

[@Healitnow]

This is the first time I have looked at the volume indicator. It seems much the same as the macd histogram.

[@alexpalermo4738]

macd is more of a lagging indicator based off the previous prices. Where the volume indicator tells you the amount in the current day

[@stefan-stocksmadesimple5241]

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 ?

[@davidjones2452]

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.

[@3lcost3]

Thank you, really iseful. Do volume indicators update in real time or is it a lagged indicator? Thanks again

[@Trading212]

Hi Luis, the volume indicators update in real time.

[@3lcost3]

@@Trading212 thanks

[@GamePro-gd7rm]

In the end of video high volume show uptrend but we have downtrend . Why? Volume make me more confuse

[@imwhtim]

How to take extra conformation while trading...??

[@aitorjara100]

Don't worry, if I was to draw it, it would be a bunch of Pisa tower's

[@ashley_ash7239]

Just to make sure I'm not missing anything: If the volume doesn't correspond with the chart at a given time (having done my support and resistance), the chart might be misleading..?

[@alejandrocabrera1660]

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

[@davidjones2452]

Hi Alejandro. I think you are correct but I will see if I can get Trading 212 to add a bit more detail.

[@Trading212]

Yes, Alejandro. The volume on Trading 212 is calculated based on the traders using the service.

[@FabianBeuke]

Hi, i have to say that Volume is not an Indicator. It is a primary raw data resource, like price action.

[@TheBizzyBScience]

How do I see the Vwap

[@PRIMES1]

So where do you find the volume indicator on the 212 app ?

[@Trading212]

They are currently available in the web app only.

[@English-mu1qw]

Why doesn't my volume button work? Again another video where my platform cannot do the same as yours.

[@AlreadiWon]

So Volume in theory is used by traders pretty much the same way as a RSI or Stochastic? Forex, not stock trader here by the way

[@timmonta7765]

what about volume as trend reversal?

[@issolomissolom3589]

You dont have poor standards of drawing You r the Picasso among the brokers 😃

[@russelmtlokwa6058]

Why would one need to look at volume indicator while is lagging, why don't look at the chart because indicator tells you what is already on the chart, this doesnt make sense to me at all

[@mallian123]

How can I pull out the volume indicator on my charts??? How it’s called? I am new. Please help. Thanks.

[@Trading212]

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.

[@mallian123]

Trading 212 Is this possible to find at the app? And how should be called?

[@Trading212]

Currently, the volume indicators are available in the web app only.

[@DiePiesang100]

60000th viewer xD

[@desireisfundamental]

i can see a middle finger at the top. Maby its an short technical part.

[@Blooniverse]

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?

[@davidjones2452]

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.

[@kacpor34]

Let your wife draw David she may help us

[@whatifgodimagineinfinity5526]

Volume on curency pairs is irrelevant because there are no overall market stats. This is how you know 'David' only talks the talk but doesn't know how to walk the walk.

[@AbbasAli-xu8um]

U R NOT GOOD IN VOLUME BABY AT ALL