This scalping trading strategy follows the theory that changes in volume are often followed by price action. It is the study of price movement by looking largely at historical trends, rather than using a range of technical indicators and objects.
When volume is low, it may indicate a trend dying, reversing or stalling before picking up again. In general, low volume is usually followed by high volume and therefore short-term price action (hence the suitability for a scalping trading strategy).
Ideally, you will need to be patient when the market is sitting within a range. When the volume spikes alongside price action, aim to buy before prices go up. You should then sell once the prices are high.
Note that whilst this scalping trading strategy can be insightful, it might not always be accurate. Some traders will be tempted to rely on the volume without full confirmation of a bullish trend. Remember, it can be impossible to ascertain a full picture of volume because forex is a decentralised market.
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