Volume Bars Explained: How Volume Is Displayed on Charts?

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.

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.

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.