It's extremely hard to get reliable volume data for us retail traders. I know the alpari data has volume in it, but that is just the number of ticks in that bar. So, if this indicator relies on volume, which I can guess it does, it will be nearly impossible to use reliably.
andersenws
"Youth is the trustee of prosperity." - Benjamin Disraeli
i know fx volume is not as great of an indicator as in other markets because there is no centralized dealer...but when you see huge spikes it still means something.
What it volume increases and the trend changes that indicates a reversal
Volume increases trend stays the same no change reversal
Does volume indicate how many and how fast currency moves
anyone interested in coding this??. I use it in my stock account. I know volume in forex is not the true value but it's relative. Would love to have someone code this if they don't mind.
the parameters would be something along these lines (for eurusd).
volume by price at 5 pip intervals at round numbers (i.e 1.2005, 1.2010, 1.2000...etc.). Basically summing up all volumes within that price range.
Joined Sep 2008
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Status: Order Flow Trader
|880 Posts
There's a indicator for Ninjatrader that has 3 way to plts volume histogram, imho the better is this:
VWTPO - This method distribues the volume of a bar over the price range of the bar.
e.g. A 5-minute bar has a volume of 280 and a range of 1.5 points with a High at 1534 and a Low at 1532.5, then 40 contracts (=280/7) are loaded to each of the seven prices in that range: 1532.50, 1532.75, 1533.0, 1533.25, 1533.50, 1533.75, and 1534
Inserted Code
//Volume Weighted Time Price Opportunity -
//Disperses the Volume of the bar over the range of the bar so
//each price touched is weighted with volume
BarH=High[i]; BarL=Low[i];
int TicksInBar = (int) Math.Round((BarH-Low[i])/TickSize+1,0);
while(BarL<= BarH) {
index = (int) Math.Round((BarL-TheSessionLow)/TickSize,0);
index /= TicksPerSlot; //drop fract part.
PriceHitsArray[1,index] += Volume[i]/TicksInBar;
BarL = BarL + TickSize;
May given the choise of select TF for the calculation.
