Volume

Overview

"Volume" is representative of the number of incoming price ticks provided from the brokerage's quote stream during any given bar. Because forex is unregulated there is no way to centrally guage how much volume is being moved (in $ value). In the absense of traditional volume, "tick" volume is often used as a substitute (or proxy) to guage market participants' activity.

On that assumption, if the number of ticks per bar is inceasing it is likely that there are more market participants entering the market trying to position themselves; more market participants typically equals more orders which means more money flow (or $ volume). The oppisite is true if the number of ticks per bar is decreasing, it is likely that there are fewer market participants which signifies less orders and less money flow.

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