Volumes in forex are useless

Hi everybody.. sorry, maybe the title is a bit misleading.

I've been doing some researches, not about volume but about breakout methods and other things. Doing these researches I've always took in consideration volumes, I recorded every potential trade and I noted if there was high or low volume.

Maybe I'm considering trades that take place during times when volumes are not relevant. Anyway the results are that high or low volumes have the same impact on the profitability of these signals I tested. A simple 240 ema is houndred times better to filter out loosing trades.

Why this happen? I thought, as anybody I guess, that volumes in forex are correlated at 90% to real volumes. (btw how can someone know that they are correlated at 90% to real volume if there is no real volumes?)

May you please share your point of view and your experience. Just need to know if I'm doing something wrong.

At least in the VSA thread a few people say they compared spot forex majors to futures currency and say they are closely enough related. TBH I've never really looked at currencies on futures, its always been the indices/gold/oil.

I do use volume successfully trade spot forex, high volume/low volume isn't enough. You need to need look for signs that buyers/sellers are supporting price after you've seen signs of buying/selling, which can take a lot of patience.

For example VSA teaches weakness comes in on high volume wide spread up bars. If you think about it, seeing sellers come in doesn't necessarily mean that price is going to drop. Sellers could have come only to close their long positions, price isn't likely to drop if it's just profit taking and no majors players are actively selling. Or you could see a big player come in and start selling only to get bought out by other buyers who are able to over come their selling and push price higher.

So basically you when high volume selling you still have to wait and verify that sellers are supporting price such as LHs and LLs, successful tests and up thrusts, respected resistance levels.

I've read this too... But aren't forex futures and spot forex two totally different markets? I mean, people who trade in the forex futures market don't influence the spot market... They would have to do the same trade with same size on two different markets at the same time.

I know VSA approximately, I've read Anna Couling books.. didn't got so much value from them though. Where did you learn VSA? I need to find extra confirmations for my strategy and I would like to understand if volumes can be used for my needs or not.

Forex and Futures are two different markets, but they both show the same thing which is the value of the currency. If a currency value changes, its going to change in both markets.

Let me put this a different way, when you get to professional traders, people who are trading 100s of millions of dollars there is a lot of competition. They have a ton of money and the market works on supply and demand, which means there is only a limited amount of lots available at a given price. People figure out that a big player is buying and then they want to buy as well, which takes away from the supply that is available for the professionals to buy. If they're trying to buy euro they will do it on both Forex and Futures to be able to fill all of their orders.

I've only heard the name Anna Couling, I can't say much else.

I read the book Master the Markets by Tom Williams which is available for free from their website.
I've also watched a lot of videos on YouTube, but I'll be the first to admit, there is little value here.. They are mostly sales pitches. The rest of my knowledge is from the VSA thread. Spent a lot of time Reading Malcolm, HiddenGap, Pres78 and a few others.

I've never bought anything from Traderguider, so I can't say anything about their courses or software that they sell. I've only read the book which they provide for free.

Well, actually, that's what you can say about any data you can't use in practice. And I've seen strategies for which these indicators are really part of the analysis and a lot of practical work... So don't talk about it as something insignificant. Because we can always use everything that we like and everything that we can understand well. Actually, it seems to me that there are no universal indicators, strategies, etc. that can be recommended to everyone. But in order to understand something and be able to explain it in the future - it must be tried in practice. Of course, it should be done on a demo first of all. And if you understand that it helps you, then use it.

I have learned that the volume in Forex trading (MT4 etc.) is about 70-80 % of the real volume.

But it depends on the broker. If it is a large broker with good and many liquidity providers and also an ECN broker, the volume is good enough.

If it is a small broker that does not have good liquidity providers and still acts as a market maker, it is rather bad.

No you are not misleading I read that 45% of volume is crossed intra bank on dark pools so yeah you cant trust volume