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Volume: How to Read It on a Chart | Borearis
Volume is the number of contracts or shares traded in a period. It measures participation, not direction.
What it tells you
- Rising volume with a trend suggests participation.
- A breakout on thin volume is more likely to fail.
- A volume spike at the end of a move can be exhaustion.
How to use it
Compare the current bar with the average of the last twenty. A break with double the average volume is a stronger signal than one with half.
Limits
FX spot volume is not centralised, so the number you see is broker-specific. Use it as a relative gauge, not an absolute truth.
Check price action on the gold page and size with the position size calculator.
Is volume useful in forex?
Only as a relative gauge, because spot FX volume is fragmented across brokers.
Does high volume always mean continuation?
No. Late-move spikes can mark exhaustion.
Educational content only, not investment advice.