Sudden and vigorous increase in Volume may signal for an upcoming reversal, while gradual decreasing in Volume may still be supported by rapid price moves. When Volume decreases it indicates that interest in the market is decreasing, which calls for either a trend reversal or temporary market consolidation between two exponential moving averages) through a reworked stochastic algorithm. When Volume increases it indicates a growing interest in the market, therefore it may strengthen a main trend or start a new trend The Schaff Trend Cycle Indicator (STC) by Dough Schaff, was developed to improve upon the speed and accuracy of the MACD indicator when it comes to identifying trends. The methodology of using Volume indicators The STC is not included with MT4 by default you can download it here for free. It is an ingenious combination of the popular MACD and Stochastic indicators, and is built on the premise that currency trends accelerate and decelerate in cycles. In Forex Volume data represents total number of quotes for the specified time period. The STC was developed by Doug Schaff of FX-Strategy, who publicly released it in 2008. High volume, especially near important market levels, suggests a possible start of a new trend, while low volume suggests traders uncertainty and/or no interest in a particular market. Volume indicators are used to determine investors' interest in the market.
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