Hello again all...its been quite awhile since I've posted. Many personal and health issues have prevented me from being able to post as often as I like...but I have NOT stopped trading or watching the markets. In my ongoing effort to translate the lessons I learn from my experience in the futures market I have to ask you all here (the more experienced the better)...how come very few people use the volume data included in their brokers?
I must admit I have gone on record here as saying the volume information on the forex market is "practically useless". I now repent those words. I have been using the volume info from my forex broker (oanda) and have discovered that I CAN translate some of the lessons of my futures trading into the forex market...perhaps not in exactly the same way, but back testing and observation are proving to me the great potential in using the volume information that we all have available to us.
I have not studied much about VSA (Volume/Spread Analysis), but I don't thing one needs to get so complicated with it. As you all may recall from previous posts, I am trading Forex, as a way to grow my savings account...I do NOT look at this market for daily income like I do the forex market however, the same principles I trade there, also work in this market...those of order flow.
A big part of order flow trading is volume. Specifically those volume metrics that are separated by where people are transacting...the bid or the ask. Thus the futures market divides the volume as follows: buying volume = those transacting on the ask (or the "bid" in the futures market), and selling volume = those transacting on the bid (or the "offer" in the futures market). Thus it is easy to find "anomalies" in the futures market using this information provided in each candle.
However, this information does not exist in the forex market. BUT there is a way to use the tick volume data on the forex market in combination with price's reaction to that volume and come up with nearly the same thing.
How about you? Do you use the available tick volume data in your trading? Why? or why not?
I must admit I have gone on record here as saying the volume information on the forex market is "practically useless". I now repent those words. I have been using the volume info from my forex broker (oanda) and have discovered that I CAN translate some of the lessons of my futures trading into the forex market...perhaps not in exactly the same way, but back testing and observation are proving to me the great potential in using the volume information that we all have available to us.
I have not studied much about VSA (Volume/Spread Analysis), but I don't thing one needs to get so complicated with it. As you all may recall from previous posts, I am trading Forex, as a way to grow my savings account...I do NOT look at this market for daily income like I do the forex market however, the same principles I trade there, also work in this market...those of order flow.
A big part of order flow trading is volume. Specifically those volume metrics that are separated by where people are transacting...the bid or the ask. Thus the futures market divides the volume as follows: buying volume = those transacting on the ask (or the "bid" in the futures market), and selling volume = those transacting on the bid (or the "offer" in the futures market). Thus it is easy to find "anomalies" in the futures market using this information provided in each candle.
However, this information does not exist in the forex market. BUT there is a way to use the tick volume data on the forex market in combination with price's reaction to that volume and come up with nearly the same thing.
How about you? Do you use the available tick volume data in your trading? Why? or why not?
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