Tick Volume Indicator

The Tick Volume Indicator is a powerful tool for understanding the strength behind price movements, especially in Forex, where real transaction volume is not available. Tick volume counts how many times the price changes during a candle—more changes typically indicate higher market participation. Since volume reflects strength, analyzing tick volume helps traders understand whether an uptrend or downtrend is supported by real momentum.

When tick volume rises, trading opportunities usually increase. When it falls, the market may be weak, indecisive, or preparing for reversal.

The indicator displays a wave-like structure, with peaks and troughs that show changes in buying and selling pressure:

High waves to the upside = strong bullish activity, good for long setups

Deep waves to the downside = strong bearish volume, ideal for short trades

Below is the detailed buy and sell strategy for using the Tick Volume Indicator.

Buy Strategy (Long Positions)

Use this method when price action aligns with rising bullish volume:

Conditions for a Buy

Tick volume should display green and blue waves
These colors signal increasing bullish strength.

Volume must rise along with the price action
Both price and tick volume should move upward together.

Wait for 2–3 rising volume bars
This confirms momentum—not just a random spike.

Enter the trade after confirmation
Once volume bars show consistent upside pressure.

Place a stop-loss below the recent swing low
This protects the position if volume suddenly weakens.

Exit the trade when volume starts to decrease
A drop in volume often signals trend exhaustion.

Sell Strategy (Short Positions)

Use this approach when volume confirms bearish sentiment:

Conditions for a Sell

Tick volume should display red and golden waves
These colors indicate strong selling pressure.

Volume should dip together with price action
Falling price + falling volume = strong bearish continuation.

Wait for 2–3 downside volume bars
This confirms enough momentum to justify a short entry.

Enter after consistent bearish volume shows
Avoid entering too early during consolidation.

Stop-loss should be placed near the recent swing high
Protects the trade from sudden bullish traps.

Exit the trade when volume starts to rise
Increasing volume during a downtrend can hint at a reversal.

Best Timeframe for Tick Volume

There’s no strict timeframe requirement, but the indicator performs best on charts above 30 minutes (e.g., M30, H1, H4).
Higher timeframes filter out noise and provide more reliable volume patterns.

Combining Tick Volume with Other Indicators

For more accurate signals, pair tick volume with:

RSI – confirms overbought or oversold conditions

MACD – confirms trend direction and momentum

These combinations reduce false signals and improve timing.