FXCM educates traders to judge market movements and trading opportunities by looking at volume and volume ratios.
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Volume is an important indicator that reflects the activity of the market and the intent of the main force. When the trading volume continues to expand, it means that the market participation is high and ** is in a strong stage;And when the volume shrinks or shrinks, it means that the market participation is reduced, and ** may face the risk of correction or**.
The volume ratio is also one of the important reference indicators for judging the trend. The volume ratio indicates the rate of change in the volume per unit of time, which can reflect the strength of the market. If the volume ratio is greater than 1, it means that the volume is increasing and the market activity is highIf the volume ratio is less than 1, it means that the volume is decreasing and the market activity is low.
In the teaching of FXCM Education, some auxiliary analytical tools and methods are also introduced to help traders better understand and apply volume and volume ratios. For example, traders can use tools such as technical analysis indicators, trend lines, support and resistance levels to determine market movements and trading opportunities in a comprehensive manner.
In short, it is very important for traders to master the basic concepts and application methods of volume and volume ratio. By observing the changes in trading volume and volume ratio, you can better grasp market trends and trading opportunities, and improve the accuracy and success rate of transactions.