Volume as a decision criteria?

Hello everyone!

In other markets volume is widely used as a decision factor. However I don't see experienced traders in Forex talking a lot about volume. Why is that?

Is the volume data fed for some brokers reliable to incorporate in our analysis?


Thanks in advance,

Fabian

Short answer; Forex is OTC ie. there is no central exchange and as a result there are no official volume numbers. You can use the numbers from the CME currency futures but that only represents a tiny fraction of total trade. The volume you see on some charts is tick volume (the total number of price changes per bar).

I don't want to sound like the bad guy, but you couldn't simply have used the search function - this topic has been discussed a million times.

Hello, if you want more info about the use of tick volume, I suggest you go and see the traderslaboratory.com forum and search for VSA.

Extremely interesting thread about the use of volume in our decision making, either forex, e-mini future, stock or any others tradables instruments.

Tick volume is an extremely reliable replacement in forex for volume seeing in the future or stock market.

Sincerely

Shreem

check out COT data, it is somewhat like volume data but better because it separates the data and you can see what the big boys are doing as well as the commercial hedgers.

Its fun to look at, but I dont use it because the data is extremely lagged. However, some traders have developed some great systems from COT data

Well guys,

Thanks for your answers. I'll check those out. If I come with some other question, I'll feel free to ask here. Thanks a lot.

Oh and Faure, I know I should have used the search function. It was for my laziness I didn't do it. Thanks anyway!

Fabian!