Volume — the forgotten dimension

Most traders look at price alone. Volume adds a second dimension: how much activity stood behind this move. A move on large volume means conviction; a move on weak volume means hesitation.

What volume measures

In shares and futures, volume is the number of units actually traded. In decentralised forex there is no single true volume, so platforms display tick volume — the number of price changes in the period. It is an approximation of activity, and it serves the purpose when read relatively.