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question about volume chart

  • #1
  • First Post: Edited 3:30am Dec 30, 2020 2:53am | Edited 3:30am
I have a question about volume bar. Since 1 standard lot equal to 100,000 units of dollar, gold move 1 pip from 1879.45 to 1879.46 = 1/100,000 of 1 lot ? right? or in other words, 1 volume = 1 pip of price movement unit five digits of dollar product？
  • #2
  • Dec 30, 2020 3:09am Dec 30, 2020 3:09am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting extjsjquery
I have a question about volume bar. Since 1 standard lot equal to 100,000 units of dollar, eurusd pairs move 1 pip from 1.22573 to 1.22574 = 1/100,000 of 1 lot ? right? or in other words, 1 volume = 1 pip of five digits of dollar currency pair？
If you are talking about MT4, there's no real volume ... 1 volume = 1 tick ... nothing else.
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Dec 30, 2020 3:27am Dec 30, 2020 3:27am
Quoting FerruFx
{quote} If you are talking about MT4, there's no real volume ... 1 volume = 1 tick ... nothing else.
tick defination means one tick refer to one trade. I do not care the financial product if it is forex, I care the bar. If 1 volume is equal to 1 movement basic unit of Price, then I would consider other product like future or stock .etc.
  • #4
  • Dec 30, 2020 3:38am Dec 30, 2020 3:38am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting extjsjquery
{quote} tick defination means one tick refer to one trade. I do not care the financial product if it is forex, I care the bar. If 1 volume is equal to 1 movement basic unit of Price, then I would consider other product like future or stock .etc.
There's no trade size attached to the tick you receive ... that was my point. Volume in MT platforms is just a ticks counter.
MT4/MT5 EAs/Indicators/Alerts coder
  • #5
  • Dec 30, 2020 3:45am Dec 30, 2020 3:45am
Quoting FerruFx
{quote} There's no trade size attached to the tick you receive ... that was my point. Volume in MT platforms is just a ticks counter.
Not limited to platform or procuct, repeat what I said just now , what I care is 1 volume = 1 basic movement unit of price, and other product and platform is available
  • #6
  • Dec 30, 2020 4:56am Dec 30, 2020 4:56am
  •  FerruFx
  • Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,542 Posts | Online Now
Quoting extjsjquery
{quote} Not limited to platform or procuct, repeat what I said just now , what I care is 1 volume = 1 basic movement unit of price, and other product and platform is available
I may have misunderstood ... but yes each time the price moves (received a tick), volume increase by 1.
MT4/MT5 EAs/Indicators/Alerts coder
  • #7
  • Edited 7:42am Dec 30, 2020 7:15am | Edited 7:42am
Quoting FerruFx
{quote} I may have misunderstood ... but yes each time the price moves (received a tick), volume increase by 1.
Thanks. But something puzzled me.
according to definition as you said, 'each time the price moves (received a tick), volume increase by 1', the chart could be draw block chart/matrix graph when volume is set 1. (please see picture 1)
and when set volume =10, or 11,12,...etc,(any number above 1), it would be the OHLC bar(openhighlowclose). the chart SHOULD be Normally Distributed with same angle like the situation when set 1 volume.
Attached Image (click to enlarge)
Click to Enlarge Name: volumebar2.png Size: 35 KB

However, it did not appear/present what I expected, it looks Non-normally distributed. (please see picture 2 with real volume chart from website).Somebody would say renko chart would be what I want, no, renko is only filter the noise not original data bar but artificial bar.
Attached Image (click to enlarge)
Click to Enlarge Name: volumebar3.png Size: 39 KB

Let come to the topic,
volume=C*price , C represent constant number, volume has direct proportion relationship with price. and the volume bar chart shoud appear/present Normally Distributed like renkobar act.
If the volume bar chart is right, where is wrong my comprehend or vice versa?
  • #8
  • Dec 30, 2020 1:08pm Dec 30, 2020 1:08pm
The entire thread is absolutely packed with misinformation and totally incorrect assertions. Almost nothing said above is right.


Quoting extjsjquery
gold move 1 pip from 1879.45 to 1879.46 = 1/100,000 of 1 lot ? right?

No, not correct at all.


Quoting extjsjquery
in other words, 1 volume = 1 pip of price movement unit five digits of dollar product？

No, again completely wrong.


Quoting FerruFx
1 volume = 1 tick ... nothing else.

Sorry, not trying to be rude, but this is pure fiction.


Quoting FerruFx
Volume in MT platforms is just a ticks counter.

Again, wrong. It depends on the "broker" and whether they and/or their liquidity provider are offering volume monitoring and display. It isn't connected with whether or not you're using MT4 at all. It would be no different if you used cTrader, for example. You would have a volume display available if the broker offers it, and not available if they don't. Forget MT4 - that has nothing to do with it.


Quoting extjsjquery
what I care is 1 volume = 1 basic movement unit of price

No; that's wrong. It isn't true.


Quoting FerruFx
yes each time the price moves (received a tick), volume increase by 1.

No; this is just completely wrong.

Sorry if I sound critical, but neither of you understand what you're talking about at all.

I'll try to explain.

Ticks measure the number of transactions, without giving you any clue as to their size. One tick could be a microlot, or a lot, or 100 lots. It's just a transaction (and tick charts define the duration of each bar according to the number of transactions rather than according to a timed interval).

Volume measures the number of lots traded (and volume charts define the duration of each bar according to the volume of the instrument that has changed hands, regardless of whether it was in few or many transactions).

Here's the important bit: spot forex brokers don't have the "volume" of the market available to give you, because the spot forex market is not centralised and there's no way of measuring volume.

Many pretend to offer you "volume" but all it is is their own volume, which has nothing to do with any real market at all.

When you "trade" with them (actually "bet against them") you're not in the market. You're just having a side-bet against a counterparty.

Don't let them fool you with their claims about "STP" and "NDD" and "ECN". None of that stuff changes the reality that the price at which you deal is their price (or their LP's price) for their own product. You're not really dealing in currency at all, however "STP" or "ECN" or "NDD" they are.

If you want to trade forex from volume bars, you have to use futures instead.

Similarly, the tick chart of a spot forex broker shows you how many transactions that broker has done. They have no other information to show you!
  • #9
  • Dec 30, 2020 1:16pm Dec 30, 2020 1:16pm
Quoting Quickly
The entire thread is absolutely packed with misinformation and totally incorrect assertions. Almost nothing said above is right.
LOL! I was just reading it all and tearing my hair out, and wondering whether to reply to it, when you posted. Luckily for me.

Thanks as ever for providing some accurate and helpful information on the subject!
  • #10
  • Dec 30, 2020 3:22pm Dec 30, 2020 3:22pm
From FerruFX there is No Volume in fx. Very true because there is no centralized trading desk with forex so we cant see real volume.
If you look at the share market there is volume from the stock exchange, NOT from the broker, where traders see the increased volume used as a guide to buy the shares. However, this volume does not mean that one share will rise and another will fall like it does with forex PAIRS.
  • #11
  • Dec 30, 2020 5:26pm Dec 30, 2020 5:26pm
Quoting peterhenders
However, this volume does not mean that one share will rise and another will fall like it does with forex PAIRS.
Sorry to be the bearer of bad news, but it doesn't mean that with forex pairs, either. ("If only"!).
  • #12
  • Dec 30, 2020 6:25pm Dec 30, 2020 6:25pm
some people will never understand but they hang on with hope that one day they will understand. Sorry.
  • #13
  • Dec 30, 2020 6:55pm Dec 30, 2020 6:55pm
Quoting Quickly
Ticks measure the number of transactions, without giving you any clue as to their size. One tick could be a microlot, or a lot, or 100 lots.
Investopedia really needs to stop spreading misinformation.

The website is off telling everyone..

Quote
Investors may also follow a security’s tick volume, or the number of changes in a contract's price, as a surrogate for trade volume, since prices tend to change more frequently with a higher volume of trade.
  • #14
  • Dec 30, 2020 7:39pm Dec 30, 2020 7:39pm
Quoting extjsjquery
{quote} Thanks. But something puzzled me. according to definition as you said, 'each time the price moves (received a tick), volume increase by 1', the chart could be draw block chart/matrix graph when volume is set 1. (please see picture 1) and when set volume =10, or 11,12,...etc,(any number above 1), it would be the OHLC bar(openhighlowclose). the chart SHOULD be Normally Distributed with same angle like the situation when set 1 volume.{image} However, it did not appear/present what I expected, it looks Non-normally distributed. (please see picture...
I'm not sure I completely follow what you're saying.. I think you are asking about using volume as a constant and plot what price does during that "block" of volume whether that volume block is set to 1 or 10 etc.

If that is the case, that wouldn't work, following volume you're essentially trying to follow professional (bank) money. Professional money hide their volume, they will flood the market with both buy and sell orders at the same time.

Looking at volume in blocks you will be very misleading because of the market being flooded with both buy and sell orders. Even time based volume is essentially flawed because of this.

So what's left? Basically volume gives you areas to watch, if the an institution is net long on a pair they will defend that long.
Attached Image (click to enlarge)
Click to Enlarge Name: EURJPYH1.png Size: 39 KB
  • #15
  • Dec 31, 2020 3:31am Dec 31, 2020 3:31am
There are essentially two quotes the pricing aggregator gives us. The Bid, and the Ask which may be derived from SPA or MPA data.

If the Bid dose not move, but the Ask moves one tenth of a pip, due to an LP pulling a limit order, or perhaps someone bought all that was top of book at ask.

Impossible to know, but either scenario counts as a tick?
It's bad luck to be superstitious
  • #16
  • Dec 31, 2020 3:42am Dec 31, 2020 3:42am
Quoting extjsjquery
{quote} Thanks. But something puzzled me. according to definition as you said, 'each time the price moves (received a tick), volume increase by 1', the chart could be draw block chart/matrix graph when volume is set 1. (please see picture 1) and when set volume =10, or 11,12,...etc,(any number above 1), it would be the OHLC bar(openhighlowclose). the chart SHOULD be Normally Distributed with same angle like the situation when set 1 volume.{image} However, it did not appear/present what I expected, it looks Non-normally distributed. (please see picture...
You might be interested in this type of charts,
https://www.forexfactory.com/thread/...art-creator-ea?
Trading is the hardest way to make easy money...
  • #17
  • Dec 31, 2020 3:56am Dec 31, 2020 3:56am
Volume paints many strange pictures in these types of markets dude to the fact it is only but a band of price action with ticks based on your broker.
Check out renko chart. Its based on price ticks per candle tied to price,



https://www.forexfactory.com/thread/...o-block-charts
Learn, a forex trader must, unlearn and relearn he will.
  • #18
  • Edited 8:15am Dec 31, 2020 7:59am | Edited 8:15am
Quoting Quickly
The entire thread is absolutely packed with misinformation and totally incorrect assertions. Almost nothing said above is right. {quote} No, not correct at all. {quote} No, again completely wrong. {quote} Sorry, not trying to be rude, but this is pure fiction. {quote} Again, wrong. It depends on the "broker" and whether they and/or their liquidity provider are offering volume monitoring and display. It isn't connected with whether or not you're using MT4 at all. It would be no different if you used cTrader, for example. You would have a volume display...
Thank you for your definite reply, and to others to my post. I originally thought volume has no linear proportion relationship with price. tick and volume is similar to house and house area. one tick represent you buy one house, volume represent how big the house is, and how much you pay is house price multiply house area, the house area has no linear proportion relationship with price. Am I Right?
can you participate in below post
  • #19
  • Edited Jan 1, 2021 6:04am Dec 31, 2020 8:01am | Edited Jan 1, 2021 6:04am
Quoting Anotan
{quote} I'm not sure I completely follow what you're saying.. I think you are asking about using volume as a constant and plot what price does during that "block" of volume whether that volume block is set to 1 or 10 etc. If that is the case, that wouldn't work, following volume you're essentially trying to follow professional (bank) money. Professional money hide their volume, they will flood the market with both buy and sell orders at the same time. Looking at volume in blocks you will be very misleading because of the market being flooded with...
I am seeking a kind of bar ,here I call it Price Quantity bar.
Like time bar consists of time, tick bar consists of trades, volume bar consists of shares, Price Quantity bar consists of pips.
Construction of Price Quantity bar,
the basic unit of price quntity bar is just one pip, when price move up or down 1 pip,Price Quantity bar move 1 unit.
for example, current eurusd price=1.22000,
1.22000
1.22001
1.22002
1.22003
1.22004
1.22003
1.22002
1.22001
1.22000
1.21999
Price Quantity bar move 9 pips at all, if Price Quantity bar setting=1 unit,then Price Quantity bar will have nine bars. ,if setting=3 unit,Price Quantity bar will have three bars, if setting=9, Price Quantity bar will have one bar.
  • #20
  • Dec 31, 2020 5:01pm Dec 31, 2020 5:01pm
Quoting zoo
There are essentially two quotes the pricing aggregator gives us. The Bid, and the Ask which may be derived from SPA or MPA data. If the Bid dose not move, but the Ask moves one tenth of a pip, due to an LP pulling a limit order, or perhaps someone bought all that was top of book at ask. Impossible to know, but either scenario counts as a tick?
In fact, I have an indicator which can seperate the number of Bid ticks, and the number of Ask ticks in each bar.
You might be surprised to see a down bar with a greater number of Ask ticks but happens all the time.
It's bad luck to be superstitious
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