Volumes
Volume is the raw material of all volume-price analysis: read the volume itself first — what expansion means, what shrinkage means, and the tick-vs-real convention gap.
What it is
The Volumes indicator displays each bar's volume as a sub-window histogram — not a derived "indicator" but raw data: the input source of every money-flow tool (OBV/A/D/MFI). The core reads: expansion = rising participation (breakouts/events/panic); shrinkage = falling participation (waiting/exhaustion). A price move's value depends entirely on the volume it carries — "a dry rally" and "a volume-backed rally" are completely different events.
Origin
Volume analysis is one of technical analysis's oldest pillars — traceable to the early-20th-century Wyckoff method (the accumulation/distribution model) and the classic volume-price literature. The whole "volume precedes price" family (OBV/A/D/MFI/CMF) is built on it. MT5's Volumes shows tick volume (quote-tick count) or real volume (where the broker provides it).
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Nothing to compute — how to read raw data:
Forex/CFD/spot crypto usually have only tick volume — highly correlated with real turnover but a different unit (and different across brokers). Stocks/futures and some crypto exchanges offer real volume — always prefer real where available.
Worked example
The four classic volume-price combos (the ABCs):
- Expanding on the rise: real buyers entering — confirmation of a trend start/continuation; the healthy shape.
- Shrinking on the rise: buyers exhausting or absent — a "dry rally", suspect (verify with MFI/BW MFI).
- Expanding on the fall: real selling — panic/flight, a confirmed downtrend or its climax.
- Shrinking on the fall: selling pressure fading — early exhaustion of the downtrend; a bottom brews.
Volume's meaning is always relative to price direction — the same expansion confirms a rise or accompanies flight; the same shrinkage hollows a rally or ends a fall. Volume-versus-price is the whole game.
How to read it
Reading volume (the relative-to-average method):
| Range | Common interpretation |
|---|---|
| Volume > 1.5× the 20-bar mean | Notable expansion — event/breakout/panic; that bar's information value upgrades |
| Volume < 0.7× the mean | Notable shrinkage — waiting/exhaustion; breakout reliability drops |
| Breakout day + expansion | A necessary condition of a valid breakout — shrinking breakouts are usually fake |
| The volume ladder in trends | With-trend expansion = healthy; counter-trend expansion = disagreement, be alert |
| A climactic spike | An event/panic peak — often a short-term extreme (full turnover) |
Volume has no directional thresholds and no OB/OS — every read is a relationship (volume vs price, volume vs its average). Tick-volume absolutes do not compare across brokers; the average-ratio method is the only sturdy convention.
Common signals & usage
Volume-confirmed breakout
Price breaking a key level with volume > 1.5× the mean — the confirmation to act; do not chase shrinking breakouts.
Shrinking exhaustion
Volume tapering as the trend extends — fuel running out; combine with momentum divergences to trim.
Climax reversal
A reversal right after a historic event-driven spike — "a fully-traded extreme", a common short-term turn point.
Disagreement volume
Expansion on pullbacks inside a rally — real selling exists; the rally's quality is discounted, and repetition questions the trend.
Limitations & common mistakes
- The tick-volume convention limit: it measures "quote activity", not turnover — the burst at NFP/open moments does not scale with real trades.
- Absolute values are meaningless: volume scales with instrument/broker/session — only relative methods (average ratios) are sturdy.
- "Expansion" is a fuzzy word: 1.5× or 2× the average are rules of thumb — calibrate per instrument from its own history.
- Event days skew the baseline: a giant bar raises the subsequent average denominator — "expansion" calls run stricter for 2–3 days after events.
- Limited alone: volume is raw material — judging a move (valid breakout/flight) needs price structure; volume only endorses.
Volumes in MT5
Volumes is a built-in MT5 volume indicator (sub-window histogram). The MQL5 function for programmatic use is iVolumes:
| MQL5 function | iVolumes() |
| Volume type | VOLUME_TICK (quote ticks) / VOLUME_REAL (real traded) |
| Buffers | 0=main buffer (volume value) |
| Display window | Sub-window histogram (colorable by direction) |
| Data source | Forex = broker ticks; stocks/futures = exchange (if provided) |
iVolumes takes no period parameter (raw data). applied_volume is mandatory: real volume is usually unavailable on forex symbols (returns tick or zero) — check data availability in code. Average comparisons require your own mean computation.
Behavior across timeframes
15-minute
The intraday activity map: expansion at open/close, shrinkage midday — trade around the dead sessions
1-hour / 4-hour
The main swing period for volume-price confirmation: breakout-day volume is most critical here
Daily
The classic home: average-ratio calls (1.5×/0.7×) are most sturdy on dailies
Weekly
Weekly volume scale maps to institutional participation — the money backdrop of long-term trends
Indicator combinations
Volume complements nearly everything (it is the raw material):
- With OBV: Volume is OBV's input — the histogram sees each day, OBV sees the accumulation: micro plus macro. OBV
- With MFI: Volume is MFI's weight source — the magnitude behind an MFI extreme is visible in the histogram. MFI
- With Bollinger Bands: a squeeze on shrinking volume = the coil's end; a breakout on expanding volume = confirmed — the channel-plus-volume combo. BOLL
Symbols commonly watched with Volumes
Symbol pages that list this indicator as a common tool:
FAQ
Q Is forex "volume" real?
No. Forex has no central exchange — MT5 shows tick volume (quote-tick count), highly correlated with activity but not real turnover, and different across brokers for the same session. Stocks/futures (with central exchanges) have real volume — prefer real where available.
Q How much expansion counts as "notable"?
Common rules of thumb: > 1.5× the 20-bar mean = notable, > 2× = abnormal — but calibrate per instrument (volatile names run bigger baselines). The test: look back at historical breakout/event days' multiples and build the instrument's own standard.
Q Why is shrinking volume on a rally dangerous?
A rally needs buyers to keep entering — shrinking volume means falling participation (no follow-through or buyer exhaustion). Dry rallies appear at trend ends (fuel gone) or tempting pullback rallies (sellers not done). Verified with an MFI non-confirmation or OBV divergence, it is the classic trim signal.
Q How do I switch tick/real volume in MT5?
In the indicator dialog when mounting Volumes (Apply to: Tick volume / Real volume), or the applied_volume parameter of iVolumes. Note: most forex symbols lack real volume (selecting it returns tick data anyway) — for stocks/futures it depends on whether the broker forwards exchange data.
Q Can I trade on the volume indicator alone?
No — volume is raw material, not a signal: expansion can be a breakout or a flight, and direction must come from price structure. Volume's correct role is a verifier: endorsing price signals (breakouts/divergences/exhaustion) with volume. Every money-flow indicator (OBV/A/D/MFI) is the finished product of combining volume with price.
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