This indicator is used to understand how much market activity is behind each candle and whether that activity produced a meaningful bullish or bearish result.
It helps traders distinguish between:
- normal market activity
- unusually high or low volume
- strong bullish participation
- strong bearish participation
- climax volume
- absorption, where volume is high but price movement is weak
For example, a large bullish candle with high relative volume may indicate genuine buying pressure, while a small candle with very high volume may suggest absorption or a possible turning point.
It is especially helpful for:
- Price-action traders, who want volume confirmation before entering.
- Breakout traders, who want to check whether a breakout has strong participation.
- Reversal traders, who look for climax or absorption near support and resistance.
- Intraday traders and scalpers, who need quick information about current market strength.
- Forex and CFD traders, who mainly use tick volume in MetaTrader.
- Crypto, stock, and futures traders, where real volume may be available.
- Beginner traders, because the dashboard translates raw volume data into simple states such as Bull Good Volume, Bear Good Volume, Climax, or Absorption.
The indicator is best used as a confirmation tool, not as a complete trading strategy by itself. Entries should still be combined with trend direction, support and resistance, market structure, or another entry method.