All language subtitles for 2. An Introduction to Volume Analysis in Trading

Hello, everyone, and welcome to the next lecture where I introduce the volumes or trading volumes
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to you. Volumes in forex, commodity stocks or any other trading instrument is defined as the number
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of units that changed hands during a specific timeframe.
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For a smart trader, theircharts are incomplete without volumes while analyzing their favorite instrument.
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At the same time, volumes are not new to the trading world.
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Legendary traders from the paper trading era used them while trading on favorite stocks back then.
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Guys, the importance of studying trading volumes has become very important in the present market conditions
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where price is manipulated more than ever.
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Therefore, volumes validate or confirm the price action during any session.
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There is some amazing written content by experienced traders and researchers who have emphasized on
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the fact that around 90% of the times, volume represent true price activity at market tops or
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market bottoms.
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Therefore, it becomes extremely crucial that a retail trader understands the true relation between
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price during a session and its associated volume.
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Therefore, guys, a price chart without volumes is incomplete.
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Although, as you studied before in Section 4, that price reveals trading sentiment through key candlestick
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patterns.
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It is the volumes on your chart which validate or confirm your analysis before you buy or sell.
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That is why volumes, when used with key levels and candlestick patterns, complete the picture
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in this trading strategy. Guys, in most of the trading platforms, volume feed is provided free of
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cost and it is therefore in our best interest that we are able to exploit this valuable tool of technical
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analysis available for free.
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I will quickly show you how to add volumes to your trading charts on MetaTrader 4.
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So guys here I have GBPUSD daily chart and I will add volume indicators to this chart.
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There are two ways to add volume bars to your chart.
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In the first method, you right click
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anywhere on your chart and then click on properties.
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Then you need to tick this box and you will be able to see volumes at the bottom of your chart. Although
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all the volume bars are of the same color.
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So I actually prefer the second option on MetaTrader 4.
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For this, you need to go to indicators and then add volumes indicator from this list, you will be
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able to locate it here in your MT4 charts.
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I choose green and red colors for high and low volumes, respectively, but feel free to choose any
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two colors.
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Only thing I want you to note here is that red color volume does not associate
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to a bearish candle on your chart.
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Instead, it means that the volume was low when compared to the previous bar's volume.
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As you can see here, the volume bar is red, even if the candle was bullish in color.
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If you use other trading platforms, please ask your broker to provide you with free volume feeds if
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you are unable to locate it.
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This also concludes this lecture and I will see you in the next lecture where I explain the use of trading
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volumes in support and resistance trading strategy.