Thinkorswim is a powerful trading platform that provides traders with access to a wide range of financial instruments, including forex. One of the most important metrics that traders use to make informed trading decisions is volume. In forex trading, volume refers to the total number of contracts or lots that have been traded within a specific time frame. In this article, we will explain how to get volume in Thinkorswim for forex.
Step 1: Open the Chart
The first step to getting volume information in Thinkorswim is to open the chart for the forex pair that you want to analyze. To do this, select the “Charts” tab on the main menu, then click on “Forex.” Next, select the currency pair you want to trade and click the “Add to Watchlist” button. Once the currency pair has been added to your watchlist, you can open the chart by clicking on the “Charts” tab at the top of the screen and selecting the currency pair.
Step 2: Add the Volume Indicator
To get volume information for the forex pair, you need to add the volume indicator to the chart. To do this, right-click on the chart and select “Studies.” This will open a dropdown menu where you can select “Add Study.”
Next, scroll down to the “Volume” section and select “Volume.” This will add the volume indicator to the chart.
Step 3: Customize the Volume Indicator
Once the volume indicator has been added to the chart, you can customize it to display the information that you need. To customize the volume indicator, right-click on the chart and select “Edit Studies.”
This will open a new window where you can customize the volume indicator. You can change the color of the volume bars, adjust the thickness of the bars, and change the volume unit to either contracts or lots.
Step 4: Analyze the Volume Information
Now that you have added the volume indicator to the chart and customized it, you can start analyzing the volume information to make informed trading decisions. There are several ways to use the volume information to analyze the forex market.
First, you can use the volume information to confirm the strength of a trend. If the volume is increasing as the price moves in a particular direction, it is a sign that the trend is strong and likely to continue. Conversely, if the volume is decreasing as the price moves in a particular direction, it is a sign that the trend is weakening and may reverse.
Second, you can use the volume information to identify potential reversals. If the price is moving in one direction but the volume is decreasing, it could be a sign that the trend is about to reverse. This is because a decrease in volume indicates that there are fewer traders in the market, and therefore less interest in the current trend.
Finally, you can use the volume information to identify potential breakouts. If the volume is increasing as the price approaches a key level of support or resistance, it could be a sign that a breakout is imminent. This is because an increase in volume indicates that there are more traders in the market, and therefore more interest in the current price level.
In conclusion, getting volume information in Thinkorswim for forex is a simple process that involves adding the volume indicator to the chart and customizing it to display the information that you need. Once you have the volume information, you can use it to make informed trading decisions and improve your overall profitability. By analyzing the volume information, you can confirm the strength of a trend, identify potential reversals, and identify potential breakouts.