What is Tick Volume in Forex?
Quick Answer: Tick volume counts how many times price changes during a period, offering a reliable proxy for trading activity in the decentralized forex market.
Understanding Tick Volume
Tick volume counts the number of price changes during a period. While forex lacks centralized volume, tick volume serves as a reliable proxy for activity—more ticks typically mean higher participation.
Using Tick Volume
Compare tick volume across sessions to track when liquidity peaks. Combine it with price action to spot accumulation, distribution, or exhaustion moves. For example, a breakout backed by rising tick volume has better odds of follow-through.
Seasonal Patterns
Tick volume usually dips during holiday weeks and spikes around major releases like NFP. Adjust trading frequency accordingly.
Limitations
Tick volume is broker-specific and may differ between data feeds. Validate signals across multiple sources or use institutional data when available.
Interpreting Spikes
Sudden volume spikes without price progress can signal absorption rather than continuation. Look for confirmation before committing capital.
Related Terms
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