DislikedHi TAH:
Please see following daily chart of EU, your chart shows huge volume increase, however my broker' (FXCM) volume seems normal.
[size=3][font=Calibri]In my opinion, the volume is reflecting mostly retail FX traders’ activities, and the volume data is not very reliable sometimes. If we over-interpret the Price Action & volume combination into PPMs, It’s not healthy for objective analysis. The volume (trading activities) increases reflects many scenarios, PPM is one of those, especially on very thin market likes holiday seasons, or early...Ignored
I agree with the thought that some very large forex transactions are not included. For example, if "Soros" were to take a position in the amount of hundreds of millions worth of currency, it might be a special deal that never shows up on any broker server. Days later, when such information might become released, other PPMs might join in the same direction, and some brokers might see some of that thru the feed from their liquidity provider.
The big thing about volume is relative increases and decreases, and where the price is as this takes place.....something often one has to drop down to a M5 or M1 chart to see. And since such matters happen in a series of "steps", just because we see high volume at highs does not mean this will not be repeated in a series of steps as price is repeatedly pumped upwards. All we can say in such a situation is that it looks like closing of longs and opening of shorts, but that it could go on for days.
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