This could lead to slippage, where orders are filled at unfavorable prices due to insufficient liquidity. High Volume Nodes (HVN) are peaks in volume at or around a price level. HVN can be seen as an indicator of a period of consolidation. Usually there is a great deal of activity on both the buy and sell side and the market stays at that price level for a great deal of time compared to other levels in the profile.

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Trading volume plays a pivotal role in the financial markets. It’s the number of shares or contracts traded in a security or an entire market during a given period. Several factors should be considered when ranking the largest forex brokers. However, the most relevant ranking criteria for Forex brokers is the Average Daily Transaction Volume (ADVT).

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When a currency pair that does not fluctuate as much, it is said to have low volatility. Liquidity on the forex market can be understood as the ability of a valued item to be transferred into currency in a certain period of time. When you are trading on currency pairs, you’re trading on the forex market which is by itself, liquid. In the case of a pullback in a stock or market, the volume should be lower than it is when the price is moving in the direction of the trend, typically higher.

Trading Futures and Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Opinions, market data, and recommendations are subject to change at any time. For example, you can mark the most traded volume of the day and the last days. The market will often test this area because it is a fair price. A fair price meant that a lot of traders want to buy or sell at this price.

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Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. When considering what else to incorporate into a volume-based strategy, it is also worth questioning the chosen timeframe. Adjusting chart timeframes from one hour, to one day, to one week can offer a different view of the situation.

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Information on this Website is provided for general information purposes only and should not be relied upon by you. Nothing on this website is, or shall be deemed to constitute, financial, investment or other advice or a recommendation by us in respect of any product or service referred to on this website. The information on this website is provided for general information purposes only and should not be relied upon by you.


Buyers require increasing numbers and increasing enthusiasm to keep pushing prices higher. Increasing price and decreasing volume might suggest a lack of interest, and this is a warning of a potential reversal. This can be hard to wrap your mind around, but the simple fact is that a price drop (or rise) on little volume is not a strong signal. A price drop (or rise) on large volume is a stronger signal that something in the stock has fundamentally changed. Trading volume can also signal when an investor should take profits and sell a security due to low activity. If there is no relationship between the trading volume and the price of a security, this signals weakness in the current trend and a possible reversal.

Once you have logged in to TWS, you can access the Volume Profile by selecting the chart type and choosing Volume Profile from the list of available options. Get this delivered to your inbox, and more info about our products and services. While attention focuses on big names like Tesla as a target of retail interest, Sosnick believes that much of the real volume increase is coming from obscure names on the low end of the trading universe.