Thinkorswim is a popular trading platform that is widely used by traders across the world. The platform is known for its advanced features and analysis tools that allow traders to make informed trading decisions. However, one feature that is noticeably absent on thinkorswim is forex volume. This has been a cause of concern for many traders, who wonder why this important feature is not available on the platform.
Forex volume is a crucial tool that allows traders to measure the overall activity of the forex market. It helps traders to identify trends, reversals, and potential breakouts. Forex volume is measured using the number of ticks or price changes in a currency pair over a specific period. This data is then plotted on a chart, allowing traders to analyze the market’s behavior.
The absence of forex volume on thinkorswim has been a point of frustration for many traders. Some traders have even suggested that the platform is not suitable for forex trading because of this missing feature. However, the truth is that thinkorswim does not have forex volume for a good reason.
The reason why thinkorswim does not have forex volume is that forex is a decentralized market. Unlike stocks and futures, which are traded on centralized exchanges, forex is traded over-the-counter (OTC). This means that there is no central exchange where all the trading activity is recorded. Instead, forex transactions are executed between different market participants, such as banks, hedge funds, and retail traders.
Because of the decentralized nature of the forex market, it is not possible to measure the overall trading volume accurately. While some brokers may provide their clients with volume data, this information is not reliable as it only represents a fraction of the overall market activity. Therefore, including forex volume on thinkorswim would not be accurate or useful in analyzing the market’s behavior.
Instead of forex volume, thinkorswim provides traders with other tools that can be used to measure market activity. These tools include price-based indicators such as moving averages, Bollinger Bands, and the Relative Strength Index (RSI). These indicators can help traders to identify trends, momentum, and potential reversals in the market.
In addition to these tools, thinkorswim also provides traders with access to a wide range of fundamental and technical analysis tools. The platform allows traders to conduct in-depth research on currency pairs, including news, economic data, and technical analysis. This information can help traders to make informed trading decisions based on a wide range of factors.
Overall, while the absence of forex volume on thinkorswim may be frustrating for some traders, it is not a significant obstacle to successful forex trading. Traders can still use the platform’s many other tools and features to analyze the market and make informed trading decisions. By combining technical and fundamental analysis, traders can gain a comprehensive understanding of the forex market and make profitable trades.
