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3. What is Volume

Volume is the amount of shares exchanged during a specific time period. Volume in Forex is the amount of activity that took place (tick volume) during that time period. You do not need to worry about tick volume being less accurate (as this myth is widely spread on the internet) becasue this is not true and you will learn why along your VSA journey.

We have two different types of volume

  • Bullish Volume
  • Bearish Volume

It is impossible to know if volume contained more buying or selling just by looking at the volume staple. But we can agree on two things

  • Bullish Volume is increasing volume on any up-move and decreasing volume on any down-move
  • Bearish Volume is increasing volume on any down-move and decreasing volume on any up-move

Volume leads price, never forget this. It takes professional money (smart money) participation to move price in any direction. Without volume, any price movement is doomed to failure.

In Forex, we usually have active trading hours and inactive. The active ones being from the London Open to New York Close and the inactive trading hours being from the New York Close to the London Open. We are usually interested in the volume during the active trading hours, hence only trading during these hours. Open up a chart of EURUSD for example and look at the volume during active and inactive hours and you will quickly notice the difference.