TradingView is one of the most popular charting platforms for forex traders. It is a social-networking website that allows users to share their trading ideas, analysis, and charts with others. One of the key features of TradingView is its volume indicator, which traders use to identify market trends and potential trading opportunities. However, many traders have noticed that the forex volume on TradingView is often lower than what is reported by other trading platforms. In this article, we will explore why TradingView forex volume is so low.
To understand why TradingView forex volume is low, it is essential to first understand how volume is calculated. In forex trading, volume represents the total number of currency units that have been traded during a given period. This includes both buy and sell orders. However, unlike the stock market, the forex market is decentralized, meaning that there is no central exchange where all trades are executed. Instead, forex trades are conducted through a network of banks, brokers, and other financial institutions.
To calculate forex volume, TradingView relies on the data provided by its partner brokers. These brokers provide TradingView with the number of trades that they have executed, as well as the size of those trades. TradingView then aggregates this data to provide users with an estimate of the total forex volume.
However, there are several reasons why this estimate may be lower than the actual forex volume. First, not all brokers share their trading data with TradingView. This means that TradingView may not have access to all the trades that are being executed in the forex market. Second, some brokers may only provide TradingView with data for a subset of their clients. This means that TradingView may not have access to the trading activity of all the traders who use that particular broker.
Another reason why TradingView forex volume may be lower than expected is that some traders may not use the platform to execute their trades. While TradingView is a popular charting platform, it is not a trading platform. This means that traders who use TradingView for analysis and charting may execute their trades on a separate platform. As a result, TradingView may not have access to the trading data for those trades.
Finally, it is also possible that TradingView’s volume indicator is simply less accurate than other trading platforms. While TradingView uses a sophisticated algorithm to estimate forex volume, it is still an estimate. Other trading platforms may use different methods to calculate volume, which could result in higher volume readings.
In conclusion, TradingView forex volume is often lower than what is reported by other trading platforms due to a variety of factors. These include the fact that not all brokers share their data with TradingView, some traders may not use the platform to execute their trades, and the volume indicator may be less accurate than other platforms. While TradingView remains a popular charting platform for forex traders, it is important to keep these limitations in mind when using its volume indicator.
