Is volume a leading indicator or lagging?

Beginner Questions
1

i just didnt know if it were leading or lagging thanks guys

2

Neither. Itā€™s like current price, it only reflects ā€œnowā€.

3

Master Tang is right.

Think of it like this.

Volume shows traders/investors interest in the market.

Small example:
If the market has made a new high and is high in volume, that suggest traders are interested in this new high and are buying into it. If it made a new high and was very low in volume that would suggest uncertainty or no interest.

Volume alone wonā€™t cut it though. Just like any other indicator it should be used in conjunction with other methods. There have been many times i have entered a breakout successfully when the volume didnā€™t spike.

4

A leading indicator? In your dreams maybe.

5

Is there a such thing as a leading indicator? Iā€™d like to see one!
maybe that would be the Tardis indicator?

6

No, donā€™t you remember itā€™s the esoteric indicator! :wink:

7

LOL. Thereā€™s probably two types of indicators: lagging and not-so-lagging.

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8

is volume only available on mt4? just the charts on tradfair do no have it

9

Yes as with the answers above, the volume displayed is the NOW. Which means it is current and doesnā€™t lead or lag. but be wary MT4 and other forex charting platforms use ā€˜tick volumeā€™ as opposed to real volume. I suggest if you want to see real volume get yourself a futures demo account and watch real contract volume there.

10

What do u mean by new high?

11

hi MeiHuaā€¦

how we can do that??

what broker and which platform?? so we can have a futures chart with real volume??
as i found broker futures like FXCMā€¦ if i used MT4 platformā€¦ if i open euro indeks chart maybe i would still see volume but maybe not in real but only tick

would you like to share please?? :slight_smile:

12

Yes I think it can be considered as such, for instance the OBV gives direction to the volume indicator, which helps a trader to see if there is buying pressure or selling pressure, and if the price chart is conforming to that pressure. OBV can help to identify trends that can be traded, a change of sentiment by investors and more. So with this example I can say it should be a leading indicator!

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13

If an indicator is giving info that is now - whether it is the Stochastic, the MACD, Volume or whatever - then it is LAGGING.

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