A Trading Idea which needs Refining | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Newbie needs help with a logic idea 19 replies

Needs Coding (Syntax) idea 2 replies

Breakout Strategy EA needs refining 1 reply

Simple Trading Idea: 20-3 win loss record, needs EA to further test please! 2 replies

which pairs to watch at which open/close 5 replies

Attachments: A Trading Idea which needs Refining
Exit Attachments

A Trading Idea which needs Refining

  • #1
  • First Post: Apr 3, 2008 8:19am Apr 3, 2008 8:19am
Hi All Expert Traders,

I have a trading idea which needs a bit of refining and i will appreciate expert comments on this.

The idea is to compute the maximum traded volume on 1 minute charts during the day.

Then finding the bulls power and bears power at that point of time along with the close price.

This defines the trend direction, whether up or down.


Now, can this idea be put to some useful purpose.
  • #2
  • Apr 3, 2008 8:56am Apr 3, 2008 8:56am
Who got the nobel prize for discovering a way to find volume on spot currency market?

:surprised
  • #3
  • Apr 3, 2008 9:05am Apr 3, 2008 9:05am
Quoting forexlion
The idea is to compute the maximum traded volume on 1 minute charts during the day.
I'm having a bit of trouble with this too... How do you propose to calculate volume?
  • #4
  • Apr 3, 2008 9:29am Apr 3, 2008 9:29am
Regardless of how to get the volume, me, I'd say: since when does volume define the trend?

I suspect another terminology thing coming up
Trust price. Know yourself.
  • #5
  • Apr 3, 2008 9:36am Apr 3, 2008 9:36am
Quoting SeekingLight
Regardless of how to get the volume, me, I'd say: since when does volume define the trend?

I suspect another terminology thing coming up
In exchange-traded markets, volume is an important indicator of "conviction". For example, if we see a good rally after a prolonged blowout, we could look at volume to see whether it's just short covering or new buying interest.
  • #6
  • Apr 3, 2008 10:13am Apr 3, 2008 10:13am
Quoting fierceman
In exchange-traded markets, volume is an important indicator of "conviction". For example, if we see a good rally after a prolonged blowout, we could look at volume to see whether it's just short covering or new buying interest.
Doesn't convince me. Either things move inside/outside of thing X or not.

I'll post a simple example. Click on image to enlarge.
Regardless of volume, doesn't price already tell us what's up?
Attached Image (click to enlarge)
Click to Enlarge Name: s&p_080404_channel_example.gif Size: 18 KB
Trust price. Know yourself.
  • #7
  • Apr 3, 2008 11:10am Apr 3, 2008 11:10am
i used this

double v = iHighest(Symbol(),PERIOD_M1,MODE_VOLUME,Hour()*60,0);
double pr = iClose(Symbol(),PERIOD_M1,v);

double blp = MathAbs(iBullsPower(Symbol(),PERIOD_M1,13,PRICE_CLOSE,v));
double brp = MathAbs(iBearsPower(Symbol(),PERIOD_M1,13,PRICE_CLOSE,v));


where v gives the shift value when the volume was max on the current day's 1 minute charts

pr gives the price at that shift value

blp is bullspower and brp is bears power


like GU gave max volume at 9893 and moved on to touch 9961

but what i am not able to place is what about the lows of the day.
  • #8
  • Apr 3, 2008 11:17am Apr 3, 2008 11:17am
Myopia (http://en.wikipedia.org/wiki/Myopia)
  • #9
  • Apr 3, 2008 11:51am Apr 3, 2008 11:51am
Quoting im7i4z
Myopia (http://en.wikipedia.org/wiki/Myopia)
Thou jesteth me O noble man
  • #10
  • Apr 3, 2008 12:09pm Apr 3, 2008 12:09pm
Quoting SeekingLight
Regardless of volume, doesn't price already tell us what's up?
If you had volume data, it would have perhaps added an extra degree of probability to your trade.

I'm not arguing that volume would be the greatest thing ever, I'm just saying that it has its use in some people's trading strategies. Since the original poster here wants it, I just wanted to shed some light on it.

forexlion, where are you getting this volume stuff? You know the volume in MT4 is not actually the trading volume right? (I'm not a programmer so the code you posted doesn't answer my question).
  • #11
  • Apr 3, 2008 12:24pm Apr 3, 2008 12:24pm
only way to exploit volume in fx is if u are trading in a tier 1 bank. Thats where the biggest orders come from. Else you'd have to make do with price.

regards
jest
  • #12
  • Apr 3, 2008 1:55pm Apr 3, 2008 1:55pm
Quoting fierceman
In exchange-traded markets, volume is an important indicator of "conviction". For example, if we see a good rally after a prolonged blowout, we could look at volume to see whether it's just short covering or new buying interest.
Just trade candles and watch the fundamentals. That is the consensus of the market and should give u conviction. In forex things are a bit different from equities
100% of traders are losers. Just that some win more than they lose!
  • #13
  • Apr 3, 2008 2:16pm Apr 3, 2008 2:16pm
After writing up a 4 paragraph reply I realized that I've got my (wildly differing) views and that's that. And they won't be of help here.

*bows out*
Trust price. Know yourself.
  • #14
  • Apr 3, 2008 2:24pm Apr 3, 2008 2:24pm
Quoting Mr demark
Just trade candles and watch the fundamentals. That is the consensus of the market and should give u conviction. In forex things are a bit different from equities
Guys, I am NOT advocating the use of volume, nor do I think that it's even possible to use it since we don't have the data...

I was just trying to respond to forexlion's thread. If he can find a way to get the data and incorporate it into his trading - then all the power to him.
  • #15
  • Apr 3, 2008 2:32pm Apr 3, 2008 2:32pm
FXLion.

That is an interesting approach, to count the largest number of ticks. I am not sure what value that is except to say that there is more activity during a specific time, at a specific broker. Could you explain more about what you are trying to accomplish?
  • #16
  • Apr 3, 2008 6:01pm Apr 3, 2008 6:01pm
Quoting forexlion
Thou jesteth me O noble man
Sorry about being a jackass.

Here is a civil response without any sarcasm freebies.

Spot market has no central mechanics. That means there is no tick data. The MT4 tick data in forex is utter non-sense, not to mention it will be different from broker to broker. Even if you are considering one broker's tick data to be a "random sample" of the subject group then the next question is, do you think every tick movement in pips represents a volume of market orders (in MT4) or does it means that the price moved certain pips in that timeframe (tick TF)?

I know the answer to that so good luck.
  • #17
  • Edited 7:04pm Apr 3, 2008 6:51pm | Edited 7:04pm
I wrote this in Late '05 because I was {then} thinking along similar lines.
I named it {in my system} Bar Strength.

Here is the Base of my code; {sorry but written in VTT}
btw. BS: refers to BarStrength, not to be confused with B.S. {el Merde du del Toros (sp? but appropriate)}

BS:= ( ( H-L) + (H-O) + (H-C) + (O-L) + (C-O) ) / (H-L). Blue = Personal Preference as to whether you think it should read (H-C), (O-C)or whatever.

I then went on to Plot it as an Oscillator designed to run from Zero to 100.

Any further info required {if you think it viable} available on request.
*Edit* added blue stuff...
  • #18
  • Apr 4, 2008 12:37am Apr 4, 2008 12:37am
Quoting Bemac
I wrote this in Late '05 because I was {then} thinking along similar lines.
I named it {in my system} Bar Strength.

Here is the Base of my code; {sorry but written in VTT}
btw. BS: refers to BarStrength, not to be confused with B.S. {el Merde du del Toros (sp? but appropriate)}

BS:= ( ( H-L) + (H-O) + (H-C) + (O-L) + (C-O) ) / (H-L). Blue = Personal Preference as to whether you think it should read (H-C), (O-C)or whatever.

I then went on to Plot it as an Oscillator designed to run from Zero to 100.

Any further info required {if you think it viable} available on request.
*Edit* added blue stuff...

interesting, lets put this into code an test.

my sole objective is to analyze the moment of maximum activity and relate it to direction, so the overall market move could be sensed.
Attached File(s)
File Type: mq4 barstrength.mq4   2 KB | 333 downloads
  • #19
  • Apr 4, 2008 1:27am Apr 4, 2008 1:27am
Maybe this should give a better idea, but this is just an idea.
Attached File(s)
File Type: mq4 strength.mq4   2 KB | 324 downloads
  • #20
  • Apr 5, 2008 12:43am Apr 5, 2008 12:43am
I USE TO USE VMA ON THE FOREX buy i found the figures not to be accurate but i prefer to use the average tradingrange pips daily against the average of defined period expressed as a percentage using batch trading.

of course the volume feed from iq feed ect is still a little suss to realy get any value from, so i found there were better methods to obtain the volatility percentage to indicate the range expansion or contraction.

i havnt found a better way as yet but im sure someone will find one , its a pitty that in forex markets you cant like the share market

get the number of actual buyers to sellers this of course is seeing supply and demand in its purest form, but of course this lends it self to running up and down the price by the multi group traders or large investors and the brokers

from Brian
0 traders viewing now