In trading, a common belief is that volume indicators are only for stocks. Because stock markets are centralised and offer clear, real volume data, volume-based indicators are highly effective there. However, does this mean they have no value in forex, commodities, or cryptocurrencies? The truth is more layered. While volume indicators originated in stock trading, they can also play a meaningful role in other markets if used with understanding and care.

The idea that volume indicators are only for stocks overlooks how different types of volume data and market structures impact trading strategies across asset classes.

Why Volume Indicators Are Powerful in Stocks

Stock exchanges like the NYSE and NASDAQ report exact volume — the number of shares traded — for each transaction. This transparency makes volume indicators extremely reliable for:

• Confirming breakouts
• Identifying exhaustion moves
• Spotting accumulation or distribution phases

Popular volume-based tools such as On-Balance Volume (OBV), Volume Moving Average, and Volume Profile work exceptionally well in the stock market because the volume data is complete and accurate.

The Challenge of Volume Indicators in Other Markets

Outside stocks, using volume indicators becomes more complicated:

• Forex: There is no central exchange, so brokers provide tick volume — the number of price changes — instead of true transaction volume.
• Commodities: Futures contracts traded on exchanges like CME do provide real volume, but spot commodities often do not.
• Cryptocurrencies: Some exchanges report real volume, but the overall market is fragmented, leading to inconsistencies.

These differences fuel the belief that volume indicators are only for stocks, but that is not entirely fair. Even imperfect volume data can still offer insights.

How Volume Indicators Can Still Help

Despite data challenges, volume indicators can still be valuable outside stocks:

• Forex trading: Tick volume correlates strongly with real volume, especially on major pairs like EUR/USD. Tools like Volume Weighted Average Price (VWAP) and tick-based OBV can still add value.
• Commodities and futures: Futures volume is real and centralised, making indicators like Volume Profile and Volume Oscillators very effective.
• Cryptocurrency trading: High-volume cryptocurrencies like Bitcoin often exhibit strong volume-price patterns that indicators can track reliably.

Thus, while not as perfect as in stock trading, volume indicators are far from useless in these markets.

Best Practices for Using Volume Indicators Outside Stocks

To use volume indicators effectively in non-stock markets:

• Understand the data source: Know whether you are working with real volume or tick volume.
• Focus on major assets: In forex, focus on major pairs. In crypto, focus on high-market-cap coins.
• Combine with other tools: Use volume indicators alongside price action, support and resistance, and trend analysis for more reliable signals.
• Beware during low-activity periods: Volume indicators become less reliable during off-hours or in illiquid markets.

A smart trader adapts their use of volume indicators based on the quality of available data.

Examples of Volume Indicator Use Beyond Stocks

• Forex: Using tick volume surges to confirm breakouts in EUR/USD during the London session.
• Commodities: Applying Volume Profile to Crude Oil futures to identify high-volume price zones.
• Cryptocurrencies: Tracking OBV divergence on Bitcoin to spot potential reversals.

Each example shows that while the data quality may differ, volume analysis still adds an important dimension to trading.

Conclusion

It is not correct to say that volume indicators are only for stocks. Although they shine brightest in stock trading due to transparent volume reporting, they can also be adapted effectively to forex, commodities, and cryptocurrencies. The key is to understand the limitations of the data and use volume indicators as one piece of a broader strategy. Done properly, they remain a powerful tool across multiple markets.

If you want to master how to use volume indicators across different asset classes, enrol in our professional Trading Courses today.