Application of Volume in Forex

I want to start a thread about VSA and how volume can be used to trade Forex.

I know the topic of applying tick volume in Forex was discussed before, but when I looked through these topics I did not find anyone posting his own charts.

to start the topic I attached a file where I compared tick volume for Euro in Forex with Euro in Futures and CurrencyShares Euro Trust.

VSA is a sound methodology to show you when professional money is taking advantage of an imbalance in the marketplace in an attempt to move it in the opposite direction. By using volume per bar and the spread of that bar (the hi to the lo) and the close of that bar, you are able to see that professional money is entering the market.

Moreover, their activity a day before the big news shows what they already know and how they position themselves before the announcement.

I am going to post here my charts with my comments on them.


Anyone who would like contribute into this discussion is welcome.

one more day in Forex

eur/usd 2008-09-10

how long have you used this way to trade or give you decision?

I am posting very interesting article which goes over Volume analyses in details. The founder of this tread also did a excellent job explaining it but reading the article probably will make it more clear to those who still don't get it !

Here it is !

http://www.sfomag.com/homefeaturedet...er&YearID=2006

to MoreYummy: about two years

good info. ill take a look, sometimes I used volumne too, as it is useful.

Why we don't utillize a system based on the Volume analyses. The creator of the tread has a good knowledge about it and I think I can be very helpful as well ........Anyone ?

BTW I trade Forex 75 % based on Volume analyses ! But i have my own tweak in it. Besides the HLOC bars I use the tick chart ( if you use MT4 ).

Well, I think that style of trading requires a different type of mind and if anyone has it he would not switch places with a system. I believe that math indicators are training wheels that some day must go.

Why I don't like math indicators, first, they smooth the market and hide important clues from a trader, second, they require many bars to from before produce a signal and by that time you are too late. with volume i need 1-3 bars to produce a signal and by the time public become interested in a stock or in a move in currency I liquidate my positions into their interest. Believe me you do want to be in a trade when a public noticed it

I am personaly scalping the market on 1m and almost don't use indis..trading the price action.

I myself started as a scalper in stock before moved into Forex. If you can make money on 1m I salute you.

When I began trading I understood that my psychology and lack of knowledge about supply and demand keeps me away from making money on larger time frames. with understanding myself, I could allow my trades run for days without making me nervous.

my personal belief and experience showed that big money are not on 1m time frame. small time frames in Forex has too much noise.

1 minute = bad for your money - bad for your heart.

I agree with you but I take my signals from a higher time frame based on my analyses. I enter on a 1 min for precision since I am scalping for 3 -5 pips every time .If you tell me how to post a chart I'll show you.

but what a rush.

Ive been working 1minute TF as well. Small pip gains means bigger lot sizes or more trades. One day I will graduate to bugger TFs but only when I am good at the smaller TF.

This is a valuable thread. I tried reading some of the threads on candle analysis but they seem to miss the point that professionals are leading the market rather than the candles (maybe I am being too harsh). And it seems professionals are also trading 1 minute charts.

To print your screen: Ctrl-PrintScrn then open a new word doc and then Shift-Insert. Your image should show and then you can cut and paste it wherever.

I use two screens on high resolution so I hope you can see the image !

I want to start a thread about VSA and how volume can be used to trade Forex.

I know the topic of applying tick volume in Forex was discussed before, but when I looked through these topics I did not find anyone posting his own charts.

to start the topic I attached a file where I compared tick volume for Euro in Forex with Euro in Futures and CurrencyShares Euro Trust.

VSA is a sound methodology to show you when professional money is taking advantage of an imbalance in the marketplace in an attempt to move it in the opposite direction. By using volume per bar and the spread of that bar (the hi to the lo) and the close of that bar, you are able to see that professional money is entering the market.

Moreover, their activity a day before the big news shows what they already know and how they position themselves before the announcement.

I am going to post here my charts with my comments on them.


Anyone who would like contribute into this discussion is welcome.


p.s. this thread was moved from Trading Discussion into Trading Systems (http://forexfactory.com/showthread.php?t=105655)

I decided to move this thread to Trading Systems forum at http://forexfactory.com/showthread.php?t=106315

Hi Denbur - thanks for starting an interesting thread.

Your phraseology reminds me of the work done some years ago by the experienced English trader Tom Williams, who traded for many years on Wall Street - I met him several times.

I look forward to working through you charts etc

Regards

Islander

Hey Denbur, thanks for the thread. Just downloaded an ebook called 'Master The Markets', which a partial reproduction of earlier works by Tom Williams. Had a quick look thru it and it looks very interesting...

I am going to look thru again and then take another look at your charts etc.