Rising volume on a move shows:

Participation. More participants.

Spot forex volume is:

Tick volume proxy. Brokers show tick volume.

Best way to read volume:

Relative to its average. Compare with recent volume.

Courses / Volatility and Volume Indicators

Volume Basics

What volume shows and what it hides.

Volume counts the contracts or shares traded. Rising volume with a price move shows participation. Moves on low volume are less convincing.

In stocks and futures volume is real exchange data. In spot forex there is no central exchange, so tick volume (number of price changes) is used as a proxy.

Compare volume with its recent average rather than reading single bars in isolation.

Key takeaways

Volume = participation
Forex uses tick volume as a proxy
Compare with recent averages

Quiz

Rising volume on a move shows: Answer: Participation. More participants.
Spot forex volume is: Answer: Tick volume proxy. Brokers show tick volume.
Best way to read volume: Answer: Relative to its average. Compare with recent volume.

Educational content, not financial advice.