Like any other market, Forex is based on volume for price moves.

Price always seems to catch attention as it affects the portfolio directly.

However, understanding the volume can help you identify new trading opportunities that can benefit you in the long run.

In simple words, the volume is the number of transactions or trades taking place for a stock.

There are numerous volume-based indicators that investors and traders apply to their trading.

Hidden volume indicator is one of the key indicators that boost the effectiveness of trading strategies and profit.

This guide explains the hidden volume indicator in detail along with the right way to use it in Forex trading.

Hidden Volume Indicator – A Complete Guide

A hidden volume indicator is one of the easiest ways to observe the buying and selling activity of stock at different levels.

However, if a trader can assess what the indicator tells you in relation to the price activity, he can turn a profit in the market.

Most trading platforms include volume bars in their stock charts.

Here are some of the most powerful volume trading strategies.


Price and volume are the two key components to confirm breakouts and enter positions.

Entering a new position on a daily high with increased volume is a great strategy for short as well as long positions.

You should place the stops a little below the high to make sure you don’t get into a trap.

Trending Stocks

In a stair-step approach where the stock is moving higher, you expect the volume increasing on every high and decreasing on a pullback.

The positive volume with the stock moving higher confirms the health of the trend.

As the stock moves in your favour, you should monitor the volume activity to see if the move can reverse.

Instead of using volume to predict what stocks are trending, you can use the indicator to stay in a winning position.

Volume Spikes

This type of spike often results from news-driven events and can cause sharp reversals.

It can be beneficial to trade counter to volume spikes but it needs skills and volume analysis expertise.

Such volume spikes can also give an opportunity to make a counter move position.

You need to keep your stops tight but can capture some nice gains if you time it right.

Hidden Gap Volume Indicator

The hidden gap volume indicator shows the average of the buy and sell volume and the gap between the two to help you understand the relation between price and buy/sell volume.

This is an average estimated volume on two different lines and lets you see how the price responds to increasing buy volume.

This indicator uses a mathematical formula to estimate the buy and sell volume data.

Using this gap volume indicator, you can find that the price reacts whenever there is an increase in the average buy volume above the average sell volume.

The price changes the direction and gives you an entry signal for trading.

You can also use this indicator for different analysis you want to perform.

This indicator would work well for different currency pairs and time frames and helps you get the most out of volume data you have.

Hidden Volume Indicator MT4

The hidden volume indicator is a forex indicator MT4 (MetaTrader 4) that one can use with any Forex trading system for additional confirmation to enter or exit a trade.

The indicator can work with different timeframes and currency pairs.

You just have to download the indicator and install it and it can be seen in the trading chart.

The hidden volume indicator is determined based on the mathematical value of the candle volume with the undervalued and overvalued points.

It works as an effective financial tool to predict changes in price.

It gives highly accurate signals. The indicator is not recalculated or repainted and signals appear instantly.

ThinkOrSwim (TOS) Volume Indicator

ThinkOrSwim platform allows adding raw volume and volume moving average with the use of VolumeAvg indicator.

This component helps traders and investors keep track of the overall trend by identifying the spikes in up and down volume.

You can add the indicator by right-clicking the chart and selecting the option for VolumeAvg in Studies – Add Study – All Studies.

With the TOS Volume Indicator, it is easy to find on what days the volume spikes and the way prices respond along with the volume trends over time.

This volume analysis for TOS provides a visual, simple way for traders to determine whether a tradable event is likely to occur.

Over time, one can easily see the historical volume footprints and can take important clues from them in the future to find out what a stock is up to.

How To Use Hidden Volume?

Trading forex becomes easier with the right indicators and strategies.

To become successful at trading, you can use tools like hidden volume indicators and build an effective strategy.

The hidden volume is one of the numerous volume-based indicators that traders apply to trade.

One can apply it conveniently by plotting the raw volume at the bottom of the chart and adding moving average to the volume to view volume in various timeframes at the same time.

The hidden volume gives meaningful insight into a trading trend as the volume is the fuel behind a price move.

More the fuel, the more likely a move is to be sustained.

On the contrary, a move in price with lesser volume is likely to fail.

The interpretation of volume affects your trading time frame to a great extent.

A day trader who watches a stock that he believes will break out of the intraday pattern would want a spike in volume for the price move.

It can be an acute event and once completed, the price can rise continuously without an increase in volume.

For investors or long-term traders, volume spikes may not be so significant to their trading strategy.

Investors, on the other hand, would want a continuous, sustained rise in volume over time as the stock moves.

This indicates the involvement of big investors with the stock because the trend can stay as they put in their money over time.

On To Our Readers

Most experienced traders are well aware that the stacks are always set against the retail trader, with most institutional traders and firms having significant data that can always put the small trader at a disadvantage.

As a retail trader, your goal must be to constantly equip yourself to gain an upper hand, and getting your hands on hidden volumes data can be a game-changer.


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