Effect Volume
- Indicators
- Ivan Simonika
- Version: 1.0
- Activations: 5
Volume indicator Effect Volume, in the Forex market volumes are unique (tick). This volume indicator demonstrates the level of financial and emotional involvement. When the indicator forms a new top, it indicates that buyers are stronger than sellers over a certain period of time. If the indicator decreases, this indicates that the bears are stronger.
Why is it impossible to track normal volumes in Forex? The fact is that this is an over-the-counter market. Consequently, it is practically impossible to calculate the volumes of purchases and sales for one instrument. Many Forex traders completely abandon volume indicators in their work. But for those who want to use them, there are some interesting tools, and one of them is Effect Volume.
The Effect Volume indicator reflects the average volume over a certain period of time. The indicator is calculated every day, and new values are added to the previous ones. If there are no price changes in the market, no new values are added to the Effect Volume. Accordingly, the indicator does not change. It is noteworthy that the balance volume sometimes grows before prices, so this indicator can indicate in advance that the market is beginning to move in one direction.