Thinkorswim is a trading platform offered by TD Ameritrade that is widely used by forex traders. It is a powerful and comprehensive platform that provides traders with a range of advanced tools, including advanced charting, technical analysis, and market data. However, one of the most common questions that traders ask about Thinkorswim is where to find the forex volume. In this article, we will explore where the forex volume is on Thinkorswim and how to use it to improve your trading.
Forex Volume on Thinkorswim:
The forex volume on Thinkorswim is located in the MarketWatch tab. This tab displays real-time quotes and charts for a range of financial instruments, including forex pairs, stocks, and futures. To access the forex volume, you need to follow these steps:
1. Open Thinkorswim and go to the MarketWatch tab.
2. Click on the “Forex” tab to display the forex pairs.
3. Right-click on any forex pair and select “Show Volume Profile.”
The volume profile is a graphical representation of the trading volume for a specific forex pair. It displays the volume at each price level over a specific period, usually the last 24 hours. The volume profile is displayed as a histogram, with the height of each bar representing the volume at that price level. The volume profile can provide valuable information about the market’s sentiment and help traders identify key support and resistance levels.
Using Forex Volume on Thinkorswim:
The forex volume on Thinkorswim can be used in a variety of ways to improve your trading. Here are some of the ways you can use it:
1. Identify Key Support and Resistance Levels:
The volume profile can help traders identify key support and resistance levels. These levels are areas where the market has previously shown significant trading activity, and they can act as barriers to further price movement. Traders can use the volume profile to identify these levels and use them as entry and exit points for their trades.
2. Confirm Market Trends:
The volume profile can also be used to confirm market trends. If the volume is high during an uptrend, it indicates that the market is bullish and that buying pressure is strong. Conversely, if the volume is high during a downtrend, it indicates that the market is bearish and that selling pressure is strong. Traders can use this information to confirm their trading decisions and avoid false breakouts.
3. Identify Trading Opportunities:
The volume profile can also be used to identify trading opportunities. Traders can look for areas of high volume and use them as potential entry points for their trades. For example, if the volume is high at a particular price level, it indicates that there is significant trading activity at that level, which could act as a support or resistance level. Traders can use this information to enter trades with a higher probability of success.
Conclusion:
In conclusion, the forex volume on Thinkorswim is located in the MarketWatch tab and can be accessed by right-clicking on any forex pair and selecting “Show Volume Profile.” The volume profile provides valuable information about the market’s sentiment and can be used in a variety of ways to improve your trading. By identifying key support and resistance levels, confirming market trends, and identifying trading opportunities, traders can use the forex volume on Thinkorswim to make more informed trading decisions.
