Forex Metatrader + Volume Indicator | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Metatrader 4 vs Metatrader 5! 23 replies

Volume indicator that predicts total volume of current candle 14 replies

MetaTrader Volume Number? 5 replies

Metatrader 5 is going to wipe out your Metatrader 4 indicators / systems 13 replies

Metatrader volume 2 replies

Forex Metatrader + Volume Indicator

  • #1
  • First Post: Jan 6, 2007 12:49am Jan 6, 2007 12:49am
I read on John Person's book - Candlestick and Pivot Points - that volume is a pretty good indicator if you know how to interpret it (I do now)

The thing is, he says that you need to borrow the volume from the futures market because the forex market does not include volume for intraday - that is it only appears after an entire day.

I'm using MetaTrader for charting and I noticed that there indeed is a volume indicator - there are quite a few, actually - and I'm wondering what this exactly is?

Anyone care to educate me? Haha
  • #2
  • Jan 6, 2007 1:14am Jan 6, 2007 1:14am
Implied volume is different but if it works out the same way in your analysis, then why not?
  • #3
  • Jan 6, 2007 1:44am Jan 6, 2007 1:44am
I use Volume and it work great, like you said, if we know how to intrepret( I also use OBV and MFI )

If you look at volume to confirm pivotpoint or td breakout, its powerfull...
I use a volume indicator that i modify with volume average, below the average a never take position

Ps.:
Probably is the broker volume: Not sure of that (I use InterbankFX)
Forex volume is not good compare to Stock market,
just look at weekly,Daily they are strange volume flow.
Thats why i use only 15,1H and 4H for volume.
Sorry for my bad english translation
  • #4
  • Jan 6, 2007 2:03am Jan 6, 2007 2:03am
Quoting Zeuzere
I use Volume and it work great, like you said, if we know how to intrepret( I also use OBV and MFI )

If you look at volume to confirm pivotpoint or td breakout, its powerfull...
I use a volume indicator that i modify with volume average, below the average a never take position

Ps.:
Probably is the broker volume: Not sure of that (I use InterbankFX)
Forex volume is not good compare to Stock market,
just look at weekly,Daily they are strange volume flow.
Thats why i use only 15,1H and 4H for volume.
Really, how do you use the OBV and MFI? I probably know less about volume than you do, seeing as how you use it constantly. All I know is volume decline => weakening, steady volume gain => strengthening, and extreme volume => blowoff.

How else do you use volume, especially in combination with pivot breakout and TD breakout?
  • #5
  • Jan 6, 2007 10:50am Jan 6, 2007 10:50am
Anyone that knows what the volume indicator is and how the forex market works will quikly realise that there is no such thing as volume for forex. The closest thing would be using futures volume as a proxy for forex volume but once again that would not be volume in its pure sence(for forex). In regard to MT volume that is a pretty worthless toll. The volume on MT is being calculated on ticks for a specific time frame and not on the number of contracs traded. The more ticks the higher the volume. To me this info is mesleading and does not hold any real value.
Stubbornly persistent
  • #6
  • Jan 6, 2007 11:09am Jan 6, 2007 11:09am
Quoting sergiu
Anyone that knows what the volume indicator is and how the forex market works will quikly realise that there is no such thing as volume for forex. The closest thing would be using futures volume as a proxy for forex volume but once again that would not be volume in its pure sence(for forex). In regard to MT volume that is a pretty worthless toll. The volume on MT is being calculated on ticks for a specific time frame and not on the number of contracs traded. The more ticks the higher the volume. To me this info is mesleading and does not hold any real value.
Extremely useful insight there. So what do you normally use in place of MT volume and futures volume? How about borrowing open interest from futures?

I can't borrow anything from futures, just pure MT info, so what do you think would be useful?
  • #7
  • Jan 6, 2007 11:14am Jan 6, 2007 11:14am
Maybe your right!!! Maybe there is no real correlation, but it works...
Most of the trader that do not know how to interpret volume indicator say its worthless... But one thing is sure (Tick or Number of contract), it show activity... And thats the goal(Get in the action when there is actual action).

Maybe it could have been a better idea to name it Activity indicator... ;-)

Quoting sergiu
Anyone that knows what the volume indicator is and how the forex market works will quikly realise that there is no such thing as volume for forex. The closest thing would be using futures volume as a proxy for forex volume but once again that would not be volume in its pure sence(for forex). In regard to MT volume that is a pretty worthless toll. The volume on MT is being calculated on ticks for a specific time frame and not on the number of contracs traded. The more ticks the higher the volume. To me this info is mesleading and does not hold any real value.
Sorry for my bad english translation
  • #8
  • Jan 6, 2007 12:04pm Jan 6, 2007 12:04pm
Volume indicator is really usefull... What ever it is made off, it work the same way as Stock volume(for interpretation)
Quick Chart Demo
Sorry for my bad english translation
  • #9
  • Jan 6, 2007 1:09pm Jan 6, 2007 1:09pm
The volume indicator on MT4 is more of a guage of volatility rather than true volume.
  • #10
  • Jan 6, 2007 1:47pm Jan 6, 2007 1:47pm
Quoting Makaveli390
The volume indicator on MT4 is more of a guage of volatility rather than true volume.

yep. In forex, there's no a true sense of volume because there is no centralized market. On any platform, it's not the true volume you are looking at but one can make use of it nevertheless. I use volume relative to action. I take note of how good the volume is when NFP comes out, relative to how good the volume is when it's flat. As for trends, volume is still volume, if it's on an uptrend and you see buying volume slowing down, it may be a warning of the end of a trend or even a reversal. The volume indicator is useful if one can apply it to his/her advantage.
  • #11
  • Jan 6, 2007 2:00pm Jan 6, 2007 2:00pm
Quoting Zeuzere
Maybe your right!!! Maybe there is no real correlation, but it works...
Most of the trader that do not know how to interpret volume indicator say its worthless... But one thing is sure (Tick or Number of contract), it show activity... And thats the goal(Get in the action when there is actual action).

Maybe it could have been a better idea to name it Activity indicator... ;-)
You are misquoting me. I did not say the Volume ind is worthless. As a matter of fact i think it is a very important tool. The volume ind from MT4 is what I was refering to as worthless in terms of showing what the volume is. Just because there is a lot of acivity it does not mean that that activity is based on high volume. Actually the exact oposite could be true. Many times you can see the price get volatile during a low liquidity period.
If one can use the volume ind from mt4 to their advantage that's great. I just think that a trader should understand the logic and calculation behind the indicators they use. If you wanna use volume in your trading the MT4 ind is not it. Use it for what it's worth and for what it can help you with but do not be mislead by it representig true Volume.
Stubbornly persistent
  • #12
  • Jan 6, 2007 2:46pm Jan 6, 2007 2:46pm
sergiu ,
by the way i dont say your wrong(Just a question),
but what make you think that the Volume is in faq the sum of the tick?
Why not the actual client buy and sell(Volume) from the broker ( In fact, volume from the broker : Not the volume market)?

Alway good to know!
Actualy a did send the question to interbankfx(Hope they answer,I'm curious. Tick count or Client buy/sell).
Sorry for my bad english translation
  • #13
  • Jan 6, 2007 2:53pm Jan 6, 2007 2:53pm
Ok i found my answer!!
Quote:
double Volume[]
Series array that contains tick volumes of each bar of the current chart.
Sorry for my bad english translation
  • #14
  • Jan 6, 2007 3:53pm Jan 6, 2007 3:53pm
Heres what i think!
Feel Free To Correct Me As you Like :-)

What is Volume Stocks?
Number of share(contract) traded over a period of time...
Ex.:So 10 000 000 in Volume/Daily could mean 100 client that bought 100 000 share...
What is Forex Volume?
It look like its the amount of ticks receive for a period of time....

Now the question!
What is the reason the tick as been push?

Do we receive the tick because we need to refresh the MT4 Charts?
--- If so, the volume receive useless data(Not fully reliable)

Do we receive the tick only when there is a transaction?
--- If so, it mean that there is indeed a transaction

Ex.: If i receive 100 volume and it mean 100 transanction, it can be considered like 100 transaction on stock(Like the above exemple on stock),Without the quantity of share...
So its not the volume in its self, but the sum of transaction in a period of time.

But forex is not like stocks. Can we consider the volume the same way?
Its is more volatile, everyone agree, so whats more important in forex,the amount of volume traded or the number of transaction?

Maybe i'm going to far here but hey!;-)
In stock we buy in theory a part of the compagny(share),
but in forex you buy what(money).
So you cannot associate volume to money, you can only look how much transaction people have done over X period of time!
The only way to associate volume to forex would be to calculate how much money we can buy from a currency and separate this into share for exemple.
So if we can only look for the number of transaction, looking at Volume(tick amount, if push on avery transaction only) sound legitimate? Dont you think!!!!
Sorry for my bad english translation
  • #15
  • Jan 6, 2007 4:09pm Jan 6, 2007 4:09pm
Quoting Zeuzere
Heres what i think!
Feel Free To Correct Me As you Like :-)

What is Volume Stocks?
Number of share(contract) traded over a period of time...
Ex.:So 10 000 000 in Volume/Daily could mean 100 client that bought 100 000 share...
What is Forex Volume?
It look like its the amount of ticks receive for a period of time....
Volume is Volume whether is stocks, futures or forex. It means the same thing. It's what you said it is: " Number of share(contract) traded over a period of time...". Now why would volume be different for forex. You are contradicting yourself by giving two different definitions about the same thing - Volume. Just because there is no volume for forex it does not mean that you can invent it. Like I said if the MT4 ind works for you that's fine more power to ya. I do not intend to turn this into a big argument. If you are so set on proving that the MT4 volume ind is the real deal good luck. I just thought it might be beneficial for people to know what the ind is all about. That's why i got involved in this discussion. I think i made my point clear. Now anyone can use that info for what it's worth.
Stubbornly persistent
  • #16
  • Jan 6, 2007 5:00pm Jan 6, 2007 5:00pm
Quoting sergiu
Volume is Volume whether is stocks, futures or forex. It means the same thing. It's what you said it is: " Number of share(contract) traded over a period of time...". Now why would volume be different for forex. You are contradicting yourself by giving two different definitions about the same thing - Volume. Just because there is no volume for forex it does not mean that you can invent it. Like I said if the MT4 ind works for you that's fine more power to ya. I do not intend to turn this into a big argument. If you are so set on proving that the MT4 volume ind is the real deal good luck. I just thought it might be beneficial for people to know what the ind is all about. That's why i got involved in this discussion. I think i made my point clear. Now anyone can use that info for what it's worth.
are you sure that the volume is not the number of transactions by FXDD FCM?
  • #17
  • Jan 6, 2007 5:15pm Jan 6, 2007 5:15pm
Wo ! relax man...
Quoting sergiu
I do not intend to turn this into a big argument.
You do, i dont
Quoting sergiu
If you are so set on proving that the MT4 volume ind is the real deal good luck.
Are you frustrated, I did not disagree at what you said at all, and my last post was just a thought i had on this, base on what you said...

Quoting sergiu
I just thought it might be beneficial for people to know what the ind is all about. That's why i got involved in this discussion. I think i made my point clear. Now anyone can use that info for what it's worth.
No one say the opposite...

I really do not care about what is behind all this... It works thats it, i'm only curious....

Quoting sergiu
You are contradicting yourself by giving two different definitions about the same thing.
Absolutely not!,
Volume Stock is number of share traded, and Forex (No Volume) have just number of transaction(how much on each transaction, you dont know), is that better ;-)
And dont tell me thats the same thing, this time:-)
Sorry for my bad english translation
  • #18
  • Jan 6, 2007 5:17pm Jan 6, 2007 5:17pm
If you look at the definition in the MetaEditor help file, you see that they say its ticks volumes( tick amount in facts).
I'm sure is right!

Quoting Trader1580
are you sure that the volume is not the number of transactions by FXDD FCM?
Sorry for my bad english translation
  • #19
  • Jan 6, 2007 5:19pm Jan 6, 2007 5:19pm
Quoting sergiu
Just because there is no volume for forex it does not mean that you can invent it. Like I said if the MT4 ind works for you that's fine more power to ya. I do not intend to turn this into a big argument. If you are so set on proving that the MT4 volume ind is the real deal good luck. I just thought it might be beneficial for people to know what the ind is all about. That's why i got involved in this discussion. I think i made my point clear. Now anyone can use that info for what it's worth.
I started reading through this thread and don't understand what you are trying to tell him. The last post he is trying to understand what the volume indicator in MT4 is actually reporting not stating that it is in fact a true volume indicator. I don't see were the argument was. Plain and simple is the indicator showing number of contracts for that particular broker or is it just a sum of the ticks for the particular timeframe? If it is a number of ticks does it include manual updates or just the actual amount of reported ticks from the broker? I don't know the answer and I think he is just trying to find out to better know how ot use it.
  • #20
  • Jan 6, 2007 5:22pm Jan 6, 2007 5:22pm
Quoting migamb
I started reading through this thread and don't understand what you are trying to tell him. The last post he is trying to understand what the volume indicator in MT4 is actually reporting not stating that it is in fact a true volume indicator. I don't see were the argument was. Plain and simple is the indicator showing number of contracts for that particular broker or is it just a sum of the ticks for the particular timeframe? If it is a number of ticks does it include manual updates or just the actual amount of reported ticks from the broker? I don't know the answer and I think he is just trying to find out to better know how ot use it.
Thanks, you got my point...
Sorry for my bad english translation
0 traders viewing now