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Charting and Studies User Guide - CQG.com

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Volume (Vol)<br />

This study displays actual volume or tick volume either by total trades or bid/ask. Volume<br />

amounts can be filtered with a volume threshold.<br />

Page 339<br />

Volume is used as a qualifier when interpreting patterns <strong>and</strong> other technical indicators. High<br />

volume events give more importance to underlying activity. Divergences between price action<br />

<strong>and</strong> volume are often used to predict future price activity. Volume is useful in identifying tops<br />

<strong>and</strong> bottoms of trends. An uptrend that shows volume trending lower may predict its<br />

conclusion, while a downtrend with waning volume <strong>and</strong> high volume event(s) may predict a<br />

reversal.<br />

Tick Volume: Represents the number of price changes that occurred during a specified time<br />

period. This volume is always available. For example, the tick volume for a 15-minute bar<br />

would be 50 if the price of the displayed contract changed 50 times during the 15-minute<br />

period that constituted the bar.<br />

Actual Volume: Represents the total number of contracts traded during the selected chart<br />

interval. The actual volume for the current day is updated when the volume information<br />

be<strong>com</strong>es available from the exchanges. The exchanges transmit volume information at different<br />

times. Therefore, when users request volume for the current day, only tick volume may be<br />

available.<br />

For users receiving DDA data: For intraday charts, the volume study defaults to Actual if trade<br />

volume is being sent, otherwise the study defaults to Tick. Additionally, cumulative volume<br />

(reported by Eurex for certain contracts) is reported as netted volume, calculated by taking the<br />

difference between each cumulative volume figure sent by Eurex.<br />

Auto Volume: Tells the system to automatically switch from tick volume to actual volume<br />

when actual volume is available.<br />

This study can be applied to all chart types.<br />

Volume Display<br />

Volume is displayed as a histogram at the bottom of the chart. The volume values are displayed<br />

in the cursor value box:<br />

• Vol = total actual or tick volume<br />

• VolFilt = filtered total volume (actual volume of trades greater than the given threshold)<br />

• VolAsk = volume of trades made on ask side<br />

• VolFiltAsk = filtered ask volume (actual volume of trades made on the ask side greater<br />

than the given threshold)<br />

• VolBid = volume of trades made on the bid side<br />

• VolFiltBid = filtered bid volume (actual volume of trades made on the bid side greater<br />

than the given threshold)<br />

<strong>Charting</strong> <strong>and</strong> <strong>Studies</strong> <strong>User</strong> <strong>Guide</strong>

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