Volume Indicators for Tradestation   Volume Indicators for Tradestation There are various ways one could exploit trade volume with various indicators. Examples of different volume indicators we use are Volume Histogram Indicator for Tradestation which objectively defines high volume, low volume, and extreme volume. Same Indicator overlaid on price as paintbar to monitor volume & price patterns. Relative Volume Ratio Tradestation indicator which objectively compares today's volume bar by bar with all past volume to determine if today's volume relative to volume of prior session is low volume, normal volume, or high volume. Volume Index Indicator for tradestation is trend indicator based on the volume information of the instrument. Volume Index Breadth is designed to gauge the volume breadth of the entire stock market which is quite important to any trader involved with stocks, index futures, ETF, or stock options. Importance of Volume Indicators Volume analysis is often neglected by traders to only focus on price. This practice is a result of not being able to properly use volume indicators i.e. read or define volume in a manner that is meaningful. Unfortunately traders that neglect volume or the use of a volume indicators, more often then not, have a distorted view of the market. You see price can only tell you half the story, when volume and price are combined only then can we see the full picture and we will be able to more clearly understand a price move. The importance of volume if ignored can be costly. Using Volume Indicators to Trade In order to properly use volume we need to display or define the volume information In a manner that is useful. With Tradestation programing capability custom volume indicators are possible, e.g. zunaa Volume Indicator for tradestation. This indicator objectively defines high volume, low volume, and extreme volume by painting the histograms accordingly - transforming an ordinary volume histogram into a powerful technical trading indicator. Lets look at how we can use the zunaa volume indicator. The example below is just one example of dozens of ways volume indicator can be used to make high probability trade decisions.. when there is a price breakout from a trading range. If the breakout is on low volume then it has a high probability of failing. If the breakout occurs on high volume it would have a much higher probability of being a true breakout - the key with breakouts is volume analysis during the breakout and volume analysis shortly after the breakout.     If the breakout occurs on high volume and then price goes into a short term consolidation with volume drying up i.e. low volume during the consolidation or shallow pullback then this is a breakout that one should go with. Conversely if volume picks up i.e. high volume enters during the consolidation or shallow pullback then the probability of the breakout failing is high. hopefully through this example you can see that without the use of a volume indicator it would be very hard to make a reasonable judgment in this particular trading situation - similarly every different trading situation, e.g. trend reversal, trend continuations, short covering, and long liquidation all these trading scenarios a volume indicator would provide extremely useful information - provided the volume indicator properly and objectively defines high volume, low volume and extreme volume - similar to our tradestation zunaa volume Indicator