Volume

Volume represents the total amount of trading activity during a specific period. In stock markets, volume is straightforward — it counts the number of shares traded. In forex, true volume doesn't exist because the market is decentralized. Instead, traders use tick volume (the number of price changes per period) as a proxy.

Despite not being "real" volume, tick volume provides useful information. A breakout accompanied by high tick volume is generally more reliable than one on low volume. Similarly, if price reaches a new high but volume is declining, it suggests the move may be running out of steam — a divergence that can signal a reversal.

Some traders don't bother with volume in forex at all, arguing that tick volume from a single broker doesn't represent the broader market. Others find it adds a useful layer of confirmation to their analysis. If you use volume, treat it as supplementary information rather than a primary signal.