Hey...what about Volume? | Page 5 | Forex Factory

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Hey...what about Volume?

  • #81
  • Dec 23, 2017 7:09am Dec 23, 2017 7:09am
Maybe currency correlation would give an idea, for example, if there is more dollar buyers across the board, it would show volume being pumped into the usd? not sure how correct that is, just an idea
  • #82
  • Dec 23, 2017 11:49am Dec 23, 2017 11:49am
Quoting nhatlam
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.
With all the respect I think you are not right.
The stock market/futures market/forex etc works like any other market.
Bid/Ask - Supply/Demand - Buyers/Sellers.
When we say volume we are not talking only about the ticks but how much pressure every side puts, what kind of pressure is it? Is bear volume increasing or bulls volume increasing(Bid/Ask). There are a lot of things that Rookie traders do not pay attention to. Sometimes I would say that bid/ask kind of volume is way more effective than the price of an instrument.

P3rri.
Do Not Predict! React!
  • #83
  • Dec 23, 2017 7:36pm Dec 23, 2017 7:36pm
P3rri,

This is forex markets. By the time US traders enter markets, some Asian traders are sleeping. So buy/sell pressures by Asian traders are useless to US traders, since Asian traders can't defend their position any more.

If you scalp in an session, on small TF Tick, M1, M5, then tick volume might be useful.
  • #84
  • Dec 24, 2017 12:26pm Dec 24, 2017 12:26pm
Quoting nhatlam
P3rri, This is forex markets. By the time US traders enter markets, some Asian traders are sleeping. So buy/sell pressures by Asian traders are useless to US traders, since Asian traders can't defend their position any more. If you scalp in an session, on small TF Tick, M1, M5, then tick volume might be useful.
This is exactly why I am advocating using 24 hr tick data. You will have all markets across the world included and have a better idea of world wide participation. As well the lull in between markets (known as gap time) when volume drops off could potentially create false signals that will not occur when using complete 24 hr tick data from the NY close.

Again it is a work in progress but that is my thought on using tick data. We have to recognize it's weaknesses and develop a plan to address it.
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  • #85
  • Dec 24, 2017 4:50pm Dec 24, 2017 4:50pm
Quoting nhatlam
P3rri, This is forex markets. By the time US traders enter markets, some Asian traders are sleeping. So buy/sell pressures by Asian traders are useless to US traders, since Asian traders can't defend their position any more. If you scalp in an session, on small TF Tick, M1, M5, then tick volume might be useful.
You are wrong here.
We are not reacting to historical volume as much as we react to the one that is happening in front of our eyes.
When using Bid/Ask the biggest amount of entries are in the current candles.
Do Not Predict! React!
  • #86
  • Dec 25, 2017 3:34am Dec 25, 2017 3:34am
Quoting Fader123
This is a brilliant thread. I have heard of a couple of companies that will supply volume data not tick. It feeds into the MT4
Volume data in FX will not have any benefit; because no matter what company provides it; it does not cover all ECNs. Therefore; it is not representative of the true market volume.
  • #87
  • Dec 25, 2017 7:36am Dec 25, 2017 7:36am
Quoting alphadude
{quote} Volume data in FX will not have any benefit; because no matter what company provides it; it does not cover all ECNs. Therefore; it is not representative of the true market volume.
I think we have covered this point enough in this thread haven't we
  • #88
  • Dec 25, 2017 7:59am Dec 25, 2017 7:59am
Quoting Fader123
{quote} I think we have covered this point enough in this thread haven't we
what was the point of this thread?
NO MATTER THE SITUATION,NEVER LET YOUR EMOTIONS OVERPOWER YOUR INTELLIGENCE
  • #89
  • Dec 25, 2017 12:15pm Dec 25, 2017 12:15pm
Quoting alphadude
{quote} Volume data in FX will not have any benefit; because no matter what company provides it; it does not cover all ECNs. Therefore; it is not representative of the true market volume.
Doesn't matter, it's not the "true" volume that matters in volume-specific undertakings pertaining to Forex. Everybody knows that true volume by exact number cannot be ascertained.

It's relative volume that we're looking after, and it's something like 90% correlated to true volume change. Relative volume is the underlying change from bar to bar, or a set as a whole.
  • #90
  • Dec 25, 2017 4:33pm Dec 25, 2017 4:33pm
Quoting Branflakes
{quote} Doesn't matter, it's not the "true" volume that matters in volume-specific undertakings pertaining to Forex. Everybody knows that true volume by exact number cannot be ascertained. It's relative volume that we're looking after, and it's something like 90% correlated to true volume change. Relative volume is the underlying change from bar to bar, or a set as a whole.
EXACTLY! People do not know that Tick volume is important as well and that is really close to the real one and the changes and the signals!
Do Not Predict! React!
  • #91
  • Dec 25, 2017 7:42pm Dec 25, 2017 7:42pm
is in MT4, represent real volume in market??
  • #92
  • Dec 25, 2017 8:02pm Dec 25, 2017 8:02pm
Quoting terow
is in MT4, represent real volume in market??
Are you serious ? Did you read the thread ? You have the answer in almost each post since page #1 !
MT4/MT5 EAs/Indicators/Alerts coder
  • #93
  • Dec 26, 2017 3:44am Dec 26, 2017 3:44am
https://www.fxstreet.com/education/v...t-201703091034

Interesting
  • #94
  • Dec 26, 2017 6:38am Dec 26, 2017 6:38am
Quoting DonPato
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"....
Didn't read all the posts , i trade crude future on MCX(mcxindia.com) and in future market volume matters and you can get exact volume so my strategy based on Volume Weighted Average Price works. Attached indicator works great on Future market, not sure about spot market because of missing volume.
Attached File(s)
File Type: ex4 VWAP.ex4   7 KB | 934 downloads
  • #95
  • Dec 26, 2017 9:57am Dec 26, 2017 9:57am
A quick update on USD/CAD short.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 93 KB

Price continues to move my direction (however slowly) in the low volume post christmas market. I have left my stop where it is and will check again in a day or so.
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  • #96
  • Dec 26, 2017 10:04am Dec 26, 2017 10:04am
Quoting Trader-Waldo
{quote} what was the point of this thread?
I thought that I had stated it clearly enough in the beginning but will revisit this again. I have found in futures trading that volume is a useful and valued tool. With the understanding that spot FX volume is NOT THE SAME as futures volume I wanted to know if I could - nonetheless - translate the lessons learned in futures to spot markets using tick volume.

I can see that people here either lack a basic understand of volume and what it implies to trading, or they do understand and have not chosen to use that information to their advantage. OK...to each his own. I simply thought this might be of some value to someone out there, and that perhaps we might all put our heads together and come up with something that might work.

Come on friends...anyone out there want to contribute?
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  • #97
  • Dec 26, 2017 10:33am Dec 26, 2017 10:33am
OK...I'll go first...How does one know if they are in a "stable" range? In other words how do we answer the age old question, do I buy(sell) a break out, or trade the "edges" for the return to the other side of the range? Or better stated, is this "break out" a "fake out"?

What establishes range stability? Yep you guessed it...volume. Under ranging conditions, no one (except us scalpers) is really interested in participating because of the limited scope of the range...thus volume drops off...especially at the "edges" or the upper and lower limits of the range...in fact it is this volume that actually establishes the range.
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 210 KB

On this accompanying screen shot, note how the trend ended with an absorption phase after climaxing buying volume. This resulted in a small double top, and this second top was a big clue...lower than average volume. From there until present, each price approached the extremes of this range, testing the limits...volume DROPPED OFF...thus establishing a "stable" range. The only order flow participating in this are those willing to take profits within the confines of this range....note how volume picks up as price flows through the middle of the range and then drops off at the edge again...

Also worthy of note is the spike in volume at the top of this range...yet no break...BIG CLUE!...

Still think tick volume is "worthless"?
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  • #98
  • Dec 26, 2017 2:19pm Dec 26, 2017 2:19pm
Almost the whole thread discussing over an already well known topic (Tick data vs real volume). Something that DonPato stated clearly on the first post. Still most people thinking they are sharing some kind of hidden knowledge about tick data and how it works (Some even get it wrong).

DonPato I've read your posts (until I've got lost in the previous discussion) and I see you are sharing the interpretation (process thinking) you go trhough when associating Tick volume and the description of different Patterns or Behaviors, but I didn't see anything related with clear statistical validation of your previous interpretations.
In the past I've tried to find some consistencies in Tick Data splitted by time (Y Axis) but I didn't end with anything conclusive. My question is, have you gone through a structured process to validate the behaviors you describe? If so, could you share how you've tested them and the results? If you didn't, I would be careful because it is easy to get lost in the concept without validating it properly.

As a side note, I do use Tick Volume in my trading.
  • #99
  • Edited 4:15pm Dec 26, 2017 3:28pm | Edited 4:15pm
Attached Image (click to enlarge)
Click to Enlarge Name: USDCADDaily.png Size: 100 KB


I am long from 1.2695, sl 11 (1.2684), tp 30
---
gone, will enter again when spread is back to normal.
NO MATTER THE SITUATION,NEVER LET YOUR EMOTIONS OVERPOWER YOUR INTELLIGENCE
  • #100
  • Dec 26, 2017 5:20pm Dec 26, 2017 5:20pm
Quoting Trader-Waldo
I am long from 1.2695, sl 11 (1.2684), tp 30 --- gone, will enter again when spread is back to normal.
Yeah...you might want to wait until the price reaches the bottom and then compare prices movement and volume. I usually try to stay away from executing inside the range.

I don't refer to it as "price action" anymore... it is "price REaction", because you are comparing the structural components of time, volume and order flow to see how it affects price...THEN decide to execute and in which direction.
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