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Volumes

  • #1
  • First Post: Mar 2, 2008 9:37pm Mar 2, 2008 9:37pm
I have been trading with metatrader 4 for about a month now and Im starting to play with new indicators for my own system.. I have stumbled upon volumes in my travels.. the question I have is how do volumes work? is it the bigger the bars are the more strength the trend has in it?

Any and all answers and opinions will be gladly appreciated.. Anything that helps me learn I will look forward to reading
  • #2
  • Mar 2, 2008 9:59pm Mar 2, 2008 9:59pm
volumes fore forex OTC trading?

I don't think so. We are not in a exchange, we are seperated in "Islands"(refer to different brokers).

Some traders using the number of tickets as an alternative to measure volumes. You can check it in trading room.

Quote
is it the bigger the bars are the more strength the trend has in it?

Depends. You should consider liquidity,market sentiment and other factors together.

regards
  • #3
  • Mar 2, 2008 10:26pm Mar 2, 2008 10:26pm
volume indication in MT4 is nothing more than the number of times the price changes (tick change) for a given bar. They are not an accurate indication of true volume. It can, however, be useful for determining volatility.
  • #4
  • Mar 2, 2008 10:40pm Mar 2, 2008 10:40pm
thank you both.. I agree that the volume isnt really that good of an indicator.. I was backtesting my system to the points where everything lined up and there wasnt anything really that I could go with from the volume levels.. some were higher and some lower.. so next hahaha
  • #5
  • Mar 4, 2008 8:35pm Mar 4, 2008 8:35pm
It is my understanding that volumes are quite significant in stocks, but not in spot forex...

tyler
skype: ststroud. let's talk trading.
  • #6
  • Mar 4, 2008 8:55pm Mar 4, 2008 8:55pm
Quoting tyler812
It is my understanding that volumes are quite significant in stocks, but not in spot forex...

tyler
Then, Tyler, I strongly suggest you research to discover WHY FX Volume is not 100% relied upon in the FX Markets. Believe me, understanding this will Improve your position.
  • #7
  • Mar 4, 2008 10:11pm Mar 4, 2008 10:11pm
Quote
WHY FX Volume is not 100% relied upon in the FX Markets. Believe me, understanding this will Improve your position

Hi, Bemec

Any clue for the above words? It's really confusing me. Do you mean futures/option markets?

So how BIS get the data of the daily volume that exceed 3 trillion?

Your answer is really appreciated.

Thanks
  • #8
  • Mar 4, 2008 10:30pm Mar 4, 2008 10:30pm
Quoting Zkf
Hi, Bemec

Any clue for the above words? It's really confusing me. Do you mean futures/option markets?

So how BIS get the data of the daily volume that exceed 3 trillion?

Your answer is really appreciated.

Thanks
Unlike Wheat Futures which are {primarily Traded on CBOT Exchange} Forex is Traded ON Numerous Exchanges {Borkers} Each "Exchange" keeps track of IT'S Own "Volume".
Therefore;

Wheat Volume on the CBOT can be trusted as an indicator of Total Contracts Traded.

GBPUSD Volume {or any other pair} on ANY FX Platform can be trusted to tell you how many times the Price Changed AT THAT PARTICULAR "EXCHANGE" {borker}. Period.
  • #9
  • Mar 4, 2008 11:16pm Mar 4, 2008 11:16pm
Thanks for your reply, I got it.
  • #10
  • Last Post: Mar 5, 2008 12:21am Mar 5, 2008 12:21am
"GBPUSD Volume {or any other pair} on ANY FX Platform can be trusted to tell you how many times the Price Changed AT THAT PARTICULAR "EXCHANGE" {borker}. Period."

Almost true...

MT4 will count up volume without a price change... new "tick", same price, adds to "volume".
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