Volume

Last modified 13:13, 5 Nov 2012

Volume

Volume Histogram

Volume is a measure of the number of trades of a security. For each interval, the total number of trades is plotted in the  style selected by the user, for example histogram, line, step, etc.

The sequence of values is plotted over time and is displayed in an indicator window along the x-axis. The volume for each interval can thereby be displayed immediately below the price data for that interval.

In this way, Volume can be used to analyze price movements, for example to confirm trends or changes in direction.

The interval periods over which volume is calculated can be daily, weekly, and monthly. Changing the chart's interval will also change the volume interval display.

Volume Moving Average Line

The moving average line is used to smooth the general trend of the volume data.

The moving average line averages the volume levels for the previous number of days that are set by the user in the MA Periods Parameter of the Volume Properties dialog box.

The resulting line is then superimposed over the volume histogram.

See Simple Moving Average for more information on the Simple Moving Average.

The display of the moving average line can be turned off by first selecting Moving Average from the drop down menu in the Plots tabbed page of the Volume Properties dialog box. Then un-check the Visible check-box and click OK to apply the change.

Other display settings, such as line color, style, weighting, color, etc., can also be set on this tabbed page.

Note - The moving average line displayed in this indicator is a moving average of the Volume data, not of the price data in the current price chart.

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