Hey...what about Volume?

Clutter up your screen?

Sure it does

I'll love to learn this orderflow and volume. Can you point me to the right direction?

Regards

You will never get real volume for FX (Don't get scammed)

Could you explain why?

I understand that there is a high correlation between the two in any event

https://www.google.co.uk/amp/s/www.f...t-201703091034

"Hey...what about Volume?"

LOL

So in order to notice a huge candle compared to others, people need a volume indicator ?

The reason why is there is no central exchange...no single repository for the data. The FX market is DEcentalized...so the only volume that is even reported is transactions or "ticks". So the"real" info we're after, like how much is exchanged at what price, doesn't exist...it can only be extrapolated...and can never be more than a certain percentage of accuracy. Whereas the futures (or any other market for that matter) has to report each transaction in terms of size, price and direction.

Of course not...but if that huge candle is on accompanying very low volume you bet I'm looking hard for some clue to go the other way.

I think I should have qualified my initial statement.
Anyway I will keep quiet and let you get on with the thread.

Here's the guy that got me started:. https://www.forexfactory.com/showthread.php?t=528126

Yes, if by "clutter up your screen", you mean give you incredible insight into what is going on underneath the surface of the market.

Hello all, I've been receiving some very good feed back both here on the thread and via private message. I thank you all for the positive feed back. So just a quick update on yesterday's USD/CAD - short

So far position is positive 40 pips, but enough for me to pull the stop down to yesterday's high, and pull the limit order for an add in. So risk is reduced to 27 pips. We'll see what happens.

So I want to continue the discussion. I should also mention that i have received some private messages from "commercial traders" advising me that what I am doing here is "pure idiocy". Not the concept so much as sharing with you all. Truth be told, I am one of those people who gains and strengthens my market beliefs from intelligent discourse (that's you). Even if you (and everyone here) were to gang up against my position, I just don't think your mini lots combined will move the market much against me. So lets continue.

I've seen the questions and comments regarding forex volume and futures volume. Lets just address this again...accept it...and move on. Forex is TICK volume. That is, it is a transaction counter. It does NOT provide "true" volume, in that it shows how many lots ("true volume") were transacted, or at what price, or whether it was on the bid or the ask. It is just how many transactions (both buy and sell) occurred. Thus absent this information we are never going to be able to discover true "delta" (buy vs sell) volume, or find those areas where absorption is occurring on a micro time frame. This is one of the many reasons why I don't trade intraday on this market.

However, on a TOTAL daily tick volume, we can use that information to show the same concepts without the "gee whiz look at that" indicator. But we must keep in mind basic principles and the larger structure of the market. FACT: Everyone (and I mean everyone) MUST transact the same way we do...by placing orders in the market. FACT: Those order are constantly streaming into the machine we call "the market" in a stream we call "order flow". Each of those transactions creates a "tick" which, when totaled at the end of the day represent the relative activity of ALL transactions as compared to the day before. FACT: When one side of the market has greater volume (true volume) relative to the other side, price will move that direction. Thus we can come to some very basic conclusions and use those to develop a strategy to take advantage of the order flow with just the simple tools available to us...price, time, and volume.

Now that we have seen that price will continue in the direction of dominant order flow...even when exhausting on lower volume, we are now presented with these choices:

1. Join the current dominant flow
2. Wait for the dominant order flow to change
3. Do nothing

Your judgment will have to be your guide on this. My personal view is to determine the tendency of the larger order flow, and try to join that when it pauses or pulls back. Thus the dilemma that started my search into order flow and volume...How does one know when the pull back is over? Fibonacci levels, support/resistance, gann lines...all useless because they don't look at the structure of the market. The better question is when will the order flow change? it seems foolish to me to place an order out in space and hope that the market will come back to it, and worse yet that it will 'magically' turn just as soon as it hits my order.

It seems more intelligent to "read" the order flow learn the signs the market shows you as to when it has had enough of one direction and will soon turn, then place my order and see if I can get filled. So now we know that if we look for the three phases, Climax, exhaustion, and absorption, even on a largely inaccurate scale such as tick volume...we have a higher probability of success, and can keep risk tighter than it otherwise would be on these larger time frames.

It seems a simple thing to me to be patient and simply check daily charts at the NY close to evaluate each daily candle after it has finished. As well, to only trade in the direction of the last monthly inflection point. This should provide multiple opportunities through out the year to make 20-50% on any account. For me, that means only having 3-5 successful trades every year. That would be NET successful trades that make at least 2.8xR. I think this goal is realistic and achievable. I have already proven it so, in a previous thread. Now I believe that combining the concepts, of "price, structure, order flow AND volume" will make this a reality. Frankly the Volume piece was the last piece I was always looking for.

I traded tick volume for over a year, and every time somebody came and brought up, that it is skewed, I always protected it the same way that "it is proven that 99% the same as real volume, etc". Then once I tried real volume out of curiosity, it was instantly obvious that it is easier to read, because the high and low volume shows itself much more obviously (so it is easier to see where the big players come in or stay out of the market), trading real volume for over a year as well, and I can't imagine myself go back to tick. When I put it back on my forex platform I'm like WTF is this?

Here is the problem with tick vs. real. Of course in reality it is much more nuanced.

If there is an aggregate big order of a 1000 units (share, contract, lot whatever) sitting right above the market to sell in a tight cluster (sell limits at resistance for example), and a big player comes in, because lets say he wants to take the market higher right now and has to absorb this selling, he'll go and take all the 1000 at market price above, so real volume adds +1000. It doesn't matter if it comes from a 1000 small traders trading 1 lots, or 10 big ones trading 100, or 5 even bigger ones trading 200. 1000 taken always.

With tick volume it will tick more or less depending on how many trades are executed. If the trades happen to be smaller it'll tick more, if bigger it'll tick less.

Sure if volume is just an small piece of your trading, tick volume can be good enough to look at, like yeah sure, there was more activity here than there, for me though it is absolute critical to know the real volume. So it also depends on how serious about volume in your trading.

my understanding from tradeguider, tom williams, gavin, is that tick volume is similar to features volume, can be used for volume analysis and regardless which one trader use success depends on interpretation. there are many posters here who knows much more than me about volume....

Update on USD/CAD short:

Position is now 156 pips positive and I have moved the stop to basically break even...it will lock a few pips.

I think we here are all very serious about our trading...and in fact I can tell you I certainly am. Once again...volume in other markets is "true" volume, but all we have to use is tick volume in the FX market...fact of life. We either use it to our advantage or don't.

As I devote my intraday trading to the futures market I use the volume info there...that being said, there is also away to "translate" the lessons learned there to the FX market as well. This is what I've said from the beginning of this thread. The FX market offers some advantages that the futures market does not...leverage on small accounts for one. Liquidity for another...availability,

If done carefully and with a high enough leverage (what you bring to trade), I believe the tick volume (the only volume available) will work.

Enough said? We have now established the advantages of other market's volume, and the disadvantage of tick volume...lets move on shall we?

Hello All...This should be my last post until after the new year. I wish you all a very Merry Christmas, and a very prosperous New Year. I hope you have found something of value here in this thread and you can use it to your advantage in your trading. Before we go...a last update on the USD/CAD Short:

Currently about 160 pips positive open trade profit, and I have moved the stop down to lock about 1/2 of that profit. Today's and Yesterday's trading came to within 30 pips of the take profit at the bottom of this range. So, perhaps the low volume environment after Christmas day will push thing far enough to hit my TP level. If not, I've locked a little more than 3x my original risk, so what ever happens here I'm OK.

How about you? Do you use the available tick volume data in your trading? Why? or why not?

It may work. But one doesn't need tick volume to be a profitable trader.
Think tick volume like a phone case or screen protector, an accessory to a phone, a trading system.