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Volume Analysis

The importance of volume analysis cannot be underestimated. Paying attention to volume can make the crucial difference in understanding how the market will move. The following tools were designed to help you understand not only how much was bought but at which prices activity was the highest, and whether there are more buyers than sellers. For technical information on this feature look at the related Wiki page.

Volume Profile

Volume Profile is a vital tool that shows the most traded prices for a particular time period. It plots volume as a histogram on the price bar, so you can see the levels where you need them.

MultiCharts

Various combinations of volume and tick data

Display option determines the way you arrange the volume data or a group of ticks. There are several ways to show Volume Profile data in MultiCharts: Tick Count, Total Volume, Sell x Buy Volume, Delta option, Buy vs Sell Volume. For example, Total Volume displays ask + bid volume provided by a data source for every tick. If Buy vs Sell option is selected, it displays total volume value in each line and the line is colored in green/red (by default) depending on whether the ask volume is greater or smaller than bid volume. More info on how to set up Volume Profile Display is here.

Two ways to set up Volume Breakdown

There are two methods available in MultiCharts that specify how to differentiate Buy and Sell volume. You can choose either Ask Traded vs Bid Traded or Up Ticks vs Down Ticks option. Ask Traded vs Bid Traded method works compares the current tick price with the current Ask or Bid tick price. Up and Down Ticks breakdown uses the comparison of the current and the previous tick price. Learn more details of this option on our Wiki page.

Tick-based bid and ask volume

MultiCharts downloads historical trade, ask and bid ticks and locally transforms them into an accurate volume representation. Trade prices are compared to asks and bids to determining at which price the trade happened. IQFeed data feed, for example, sends accurate historical ask and bid information which ensures that Volume Profile is precise.

Choose the needed resolution

You can display a volume profile on a per-bar basis, for the session, or for the entire week – all depending on what you are trying to see. Note: when your chart is set to “1 week” or higher resolution, you can only use per-bar setting.

MultiCharts

Format Instrument

Volume Profile

Customize Volume Profile components

You can change to your liking the color, size and style of any component. For complete information about our Volume Profile, visit our online Wiki Volume Profile page.

Volume Delta

Volume Delta helps you keep track of trades that were completed on ask or bid prices in real-time. It plots a series of boxes with volume displayed inside them.

MultiCharts

Setting up Volume Breakdown

There are two methods available in MultiCharts that specify how to differentiate Buy and Sell volume on Volume Delta charts. You can choose either Ask Traded vs Bid Traded or Up Ticks vs Down Ticks option. Ask Traded vs Bid Traded method works compares the current tick price with the current Ask or Bid tick price. Up and Down Ticks breakdown uses the comparison of the current and the previous tick price. Learn more details of this option on our Wiki page.

Arrange the volume data the way you want

Display option configures how volume is shown inside the box. One can set it up according to his or her requirements. There are tree methods available for MultiCharts users: Bid x Ask Volume, Total Volume or Delta (Ask – Bid Volume).

Volume Delta and Profile histogram styles

Volume Delta is traditionally shown in rectangular boxes with the color fill gradient ranging between red and green, depending on the volume values. Profile style (available when volume is shown as Delta) transforms the boxes into a histogram for easier perception of most active price levels.

Customize Colors, Sizes and Styles of the components

You can display a volume profile on a per-bar basis, for the session, or for the entire week – all depending on what you are trying to see. Note: when your chart is set to “1 week” or higher resolution, you can only use per-bar setting.

Volume Delta

Cumulative Delta

Knowing if there are more buyers or sellers at particular price can be an important indication of where the market is going. Cumulative delta plots the difference between asks and bids to give you that info.

MultiCharts

Customize Cumulative Delta charts

You can change to your liking the color, size and style of any component. For complete information about our Cumulative Delta, visit our online Wiki Cumulative Delta page.

Histogram Style

Cumulative Delta charts use time for the X-axis and its own scale for the Y-axis. The histogram is a convenient way of visualizing how far from the central zero line the delta deviated.

Volume Breakdown

There are two methods available in MultiCharts that specify how to differentiate Buy and Sell volume on Cumulative Delta charts. You can choose either Ask Traded vs Bid Traded or Up Ticks vs Down Ticks option. Ask Traded vs Bid Traded method works compares the current tick price with the current Ask or Bid tick price. Up and Down Ticks breakdown uses the comparison of the current and the previous tick price. Learn more details of this option on our Wiki page.

12 Pre-Built Volume Indicators

MultiCharts has 12 indicators included to help visualize volume in different ways. TimePriceOpportunity is of special interest when working with 2 data series.

MultiCharts

List of Volume Indicators:

TimePriceOpportunity
Volume
Volume Average
Volume Breakout
Volume Down
Volume Gradient
Volume Oscillator
Volume Rate of Change
Volume Ratio
Volume Today
Volume Up
Volume Weighted Average Price