Volume is the number of contracts, shares, or other units traded during a specific period. Volume data is used in conjunction with price patterns to confirm the prevailing trend or an indication of a reversal. Increasing volume while prices are increasing or decreasing indicates that the prevailing trend is strong and market direction remains with the trend. Decreasing volume with increasing or decreasing prices suggests a possible reversal is taking shape with volume predicting price trend. Volume is also an important confirming signal for breakouts from continuation patterns. Generally, the breakout point should be confirmed by heavy volume if the signal is real.
Adding the Volume Study to a Chart
- Click on the f(x) Studies docked pane window.
- Click on the plus sign to expand the fx Standard.
- Find the Volume study, drag and drop it on the chart
Or
- Right-Click on a blank part of the chart and select ADD STUDY.
- Under Data Source, you will find a list of charts and studies in the window. Select the one on which you want the new study to be based.
- Under Studies, select the study you want to add to the window. The library of studies will include standard ProphetX studies plus those that you have created. The Most Recent will include studies that you have previously used.
- Under Add To, select the stack you want to add the study to, or select <New Stack> to create a new stack for the study.
- Click OK to exit.
Changing Parameters
Do either of the following to change the parameters:
- For an existing study on a chart, right-click on the study and select PROPERTIES on the pop-up menu, and modify as necessary.
- Right-click on the study name listed in the f(x) docked pane and make the changes in the displayed dialog. Update will save the parameters permanently.