Volume Bars Explained: How Volume Is Displayed on Charts?
Learn how volume bars are displayed on a chart and how to read them alongside price action.
- 7 min read
- For beginners
- Educational
- Pelajaran 2 daripada 6
- 1Volume Analysis Explained: A Complete Beginner's Guide
- 2Volume Bars Explained: How Volume Is Displayed on Charts?
- 3Volume Spikes Explained: What a Sudden Increase Can Suggest?
- 4Rising Volume vs Falling Volume
- 5Price-Volume Confirmation Explained: A Beginner's Guide
- 6Volume During Breakouts and Reversals
This lesson explains how volume is typically displayed visually on a chart, using volume bars.
This is general educational content explaining a standard charting element.
What Are Volume Bars?
Volume bars are typically displayed as a separate panel beneath the main price chart, with each vertical bar representing the trading activity (as covered in the previous lesson, this is tick volume for spot forex) for the corresponding period shown on the price chart above.
How Volume Bars Are Typically Color-Coded
Volume bars are often color-coded to match the corresponding candle's direction — for example, a green or white volume bar beneath a bullish candle, and a red or black volume bar beneath a bearish candle — making it easier to visually associate volume levels with price direction for that same period.
Reading Volume Bars Alongside Price
Volume bars are meant to be read directly alongside the corresponding price action for the same period, rather than in isolation. A tall volume bar underneath a period with a large price move (covered in the earlier candle size and momentum lesson) is generally discussed differently than a tall volume bar underneath a period with relatively little price movement.
Relative, Not Absolute, Interpretation
Volume bars are generally most useful when interpreted relative to an instrument's own recent, typical volume levels, rather than as an absolute number compared across different instruments. What counts as a "high" or "low" volume bar varies significantly between different instruments and even between different timeframes for the same instrument.
Summary
Volume bars display trading activity as a separate panel beneath the price chart, typically color-coded to match the corresponding candle's direction, and are meant to be interpreted alongside price action for the same period rather than in isolation. Since typical volume levels vary significantly between instruments and timeframes, volume bars are most useful when interpreted relative to an instrument's own recent history, rather than as an absolute, universal figure.
Frequently Asked Questions
As a separate panel beneath the main price chart, with each bar representing trading activity for the corresponding price period.
Risk Warning
Trading forex and CFDs involves significant risk and may not be suitable for all investors. You may lose all of your invested capital. Please ensure you fully understand the risks before trading.
GTCFX operates as a multi-regulated group of companies, clients are kindly advised to confirm the specific legal entity, regulation, and jurisdiction under which they are being onboarded.
Dagangkan pasaran Dunia.
Buka akaun sebenar dan akses 7+ pasaran dagangan termasuk Forex, Logam, Indeks, Saham, Kripto & banyak lagi — daripada broker yang dipercayai di peringkat global.
- Dikawal selia dalam pelbagai bidang kuasa
- Pelaksanaan amat pantas
- Dana klien berasingan · sokongan 24/7
Dagangan CFD melibatkan risiko kerugian yang ketara. Sila berdagang secara bertanggungjawab.