Original subtitles

0 Hello, everyone, and welcome to the next lecture where I introduce the volumes or trading volumes 1

to you. Volumes in forex, commodity stocks or any other trading instrument is defined as the number 2

of units that changed hands during a specific timeframe. 3

For a smart trader, theircharts are incomplete without volumes while analyzing their favorite instrument. 4

At the same time, volumes are not new to the trading world. 5

Legendary traders from the paper trading era used them while trading on favorite stocks back then. 6

Guys, the importance of studying trading volumes has become very important in the present market conditions 7

where price is manipulated more than ever. 8

Therefore, volumes validate or confirm the price action during any session. 9

There is some amazing written content by experienced traders and researchers who have emphasized on 10

the fact that around 90% of the times, volume represent true price activity at market tops or 11

market bottoms. 12

Therefore, it becomes extremely crucial that a retail trader understands the true relation between 13

price during a session and its associated volume. 14

Therefore, guys, a price chart without volumes is incomplete. 15

Although, as you studied before in Section 4, that price reveals trading sentiment through key candlestick 16

patterns. 17

It is the volumes on your chart which validate or confirm your analysis before you buy or sell. 18

That is why volumes, when used with key levels and candlestick patterns, complete the picture 19

in this trading strategy. Guys, in most of the trading platforms, volume feed is provided free of 20

cost and it is therefore in our best interest that we are able to exploit this valuable tool of technical 21

analysis available for free. 22

I will quickly show you how to add volumes to your trading charts on MetaTrader 4. 23

So guys here I have GBPUSD daily chart and I will add volume indicators to this chart. 24

There are two ways to add volume bars to your chart. 25

In the first method, you right click 26

anywhere on your chart and then click on properties. 27

Then you need to tick this box and you will be able to see volumes at the bottom of your chart. Although 28

all the volume bars are of the same color. 29

So I actually prefer the second option on MetaTrader 4. 30

For this, you need to go to indicators and then add volumes indicator from this list, you will be 31

able to locate it here in your MT4 charts. 32

I choose green and red colors for high and low volumes, respectively, but feel free to choose any 33

two colors. 34

Only thing I want you to note here is that red color volume does not associate 35

to a bearish candle on your chart. 36

Instead, it means that the volume was low when compared to the previous bar's volume. 37

As you can see here, the volume bar is red, even if the candle was bullish in color. 38

If you use other trading platforms, please ask your broker to provide you with free volume feeds if 39

you are unable to locate it. 40

This also concludes this lecture and I will see you in the next lecture where I explain the use of trading 41

volumes in support and resistance trading strategy.