Volume
Volume is used to highlight unusual trading activity in a security. It can be displayed as a separate indicator in Daily, Weekly or Monthly format.
Volume signals are covered in detail under Volume Patterns.
Example
Coca Cola Corporation shows a close-up of a ranging market with
daily volume and a
20 day exponential
moving average.
Large increases in volume can be seen on days [1],[3] and [5] - when closing price falls sharply, signaling that distribution is taking place.
There is unusually low volume on days [2] and [4], both are inside days signaling uncertainty.
Setup
See Indicator Panel for directions on how to set up an indicator. To alter the default settings - Edit Indicator Settings.
To create a Volume Moving Average:
- Open the
Indicator Panel
- Select Volume in the left column
- Under Optional Indicator Smoothing, set a
moving average
(the above example has been set to a 50-Day exponential moving average of Volume) - Save [>] the indicator settings and
- Close [x] the Indicator Panel.
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