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If you’re looking to enhance your intraday trading on TradingView, understanding volume indicators is key. Volume tells you how active a particular asset is and can help you make better trading decisions. In this guide, we’ll walk you through how to use the Intraday Volume Indicator on TradingView to boost your trading skills.
What is the Intraday Volume Indicator?
The Intraday Volume Indicator measures the total trading volume for an asset during a specific time frame, usually for the day. It helps traders identify trends, breakouts, and potential reversals by showing how many shares, contracts, or units are traded within a given period.
How to Add the Volume Indicator on TradingView
- Open TradingView and select your chart.
- Click on the Indicators button at the top.
- Search for “Volume” in the search bar.
- Select Volume from the list and it will appear at the bottom of your chart.
How to Read the Volume Indicator
- Bars above the baseline: These represent higher trading volume. When price moves with high volume, it indicates strong interest in that direction.
- Bars below the baseline: These represent lower trading volume, which might signal indecision or weak trends.
- Spike in volume: A sudden spike can indicate breakouts or important price changes, as heavy trading activity often precedes price moves.
Best Practices for Using Volume in Day Trading
- Volume Confirmation: Look for volume spikes to confirm trends or reversals. For instance, if the price breaks out of a resistance level with high volume, the breakout is more likely to hold.
- Volume Divergence: Watch for when the price goes up, but volume decreases. This could indicate a weak trend and potential reversal.
- Volume Patterns: Learn key patterns like volume climax (huge spikes) that could signal market exhaustion.
The Intraday Volume Indicator is a powerful tool for day traders, offering insight into market activity and helping you make more informed decisions. By using volume spikes, patterns, and confirmations, you can improve your trading strategy and spot potential opportunities.