Understanding Volume Indicators

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Hello everyone, hope you all are doing good? This is the beginning of an exciting three part series, which promises to be informative and also educative, do well to follow all the parts, as you will definitely gain 1 or 2 useful information from the series. In today's article we would be looking at what is Volume indicator and how we can insert Volume indicator on our trading charts.


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Volume is a real-time indicator that plays a vital role in helping traders make good trading decisions. Volumes tells us the traders of the current market situation of a given asset, i.e are traders buying or selling this asset. Volumes helps to give traders clue on how other traders view an asset.


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Volumes are used by traders to confirm the market trends. Since we can use the volume indicator to have a clue on how other traders view the market, it can also help us, predict the trend of the market after carefully observing and perceiving the views of other traders through the volume indicator.

Many traders use the volume indicator to know if a trend is continuous and there is a reversal coming up soon. As volumes show/indicates what's happening in the market, such as the number of the assets traders are buying or sell(hence, volume). You can easily get a good early signal if the trend will be a continuous trend or a reversal trend.

Technically, volumes is the number of an asset that is been traded at a specified period of time, it could be a 30 mins, 1 hour, 1 week, 1 month timeframe and so on. Hereby, traders can know the intensity of the market activities at different times, and strategize on when to enter the market and exit the market. Big corporation could use it to their advantage, increase the volume of trades, which will attract more trades to the market and leave the market while making good profits, it is known as Liquidity fakeout.

In all, Volume indicator is a very useful technical trading tool that helps to provide traders with some insight into the market, in order to improve their trading decisions.


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Inserting Volume Indicator To Our Trading Chart.


I will be making use of the Huobi Exchange to show how to add the volume indicator on a trading chart.

First, visit Huobi Exchange, by clicking here. Below is the image of the homepage.


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At the header section, click on Spot Trading, you will notice a dropdown, then click on Exchange. Look at the image below for more understanding.


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You have successfully arrive at the Exchange section of Huobi Exchange. You can search for your coins and place your trade. But that's not what we are after currently, as we would like to see the chart bigger. You have to click on Full Screen button, which you can clearly see below.


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This is how the trading chart looks like on Huobi Exchange(image below).


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To add the volume indicator on the chart, you will have to click on Index, and search for the volume indicator and click on it once you have found it. Look at the image below for more understanding.


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This is how a trading chart with volume indicator looks like on Huobi Exchange.


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You can modify the volume indicator to your preference, by clicking on the setting options. You can change style of the volume indicator(under the style section), by changing the color or the intensity to your choice. You can also add Moving Average, by clicking on Show MA, and change the number of days you want your Moving Average to be(under the Input section). Look at the images below for more understanding.


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Once you have chosen your preference in the Volume indicator setting, you are now ready to start using the Volume indicator on Huobi Exchange platform.


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Thanks For Reading



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