Massive Volume today! What happened? | Forex Factory

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Massive Volume today! What happened?

  • #1
  • First Post: Feb 6, 2013 4:28pm Feb 6, 2013 4:28pm
Today the daily volume on the E/J was 7.5 times normal and the E/U ws 7.9 times normal. Similar for G/U and U/C.

I've seen this with stocks when the price hits a swing high or low and the market reponds but the price of these pairs didn't do anything huge. I was expecting a rally after the daily outside bar on the E/J but that hasn't happened yet.
Does this mark today as a swing high for the E/J?? Is tomorrow going be a big selloff?

Also my broker - Forex.com had speads as low as 1 or 0 on the E/J which I was watching in amazement.

If everyone jumped in today why didn't the price move more than 175 high to low?


Can someone enlighten me?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: daily eurjpy feb 6 2013.gif Size: 13 KB
Click to Enlarge Name: daily eurusd feb 6 2013.gif Size: 14 KB
Click to Enlarge Name: daily gbpusd feb 6 2013.gif Size: 15 KB
Click to Enlarge Name: daily usdcad feb 6 2013.gif Size: 17 KB
Click to Enlarge Name: hour eurjpy feb 6 2013.gif Size: 19 KB
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  • #2
  • Feb 6, 2013 4:46pm Feb 6, 2013 4:46pm
Yesterday's London open bar - see above - was 107 pips in one hour yet the volume was less than a quarter of the high volume bar today.

It seems the big boys were in agreement yeaterday but on opposite sides today. I guess tomorrow will shed some light.
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  • #3
  • Feb 6, 2013 9:35pm Feb 6, 2013 9:35pm
Quoting Don M
Today the daily volume on the E/J was 7.5 times normal and the E/U ws 7.9 times normal. Similar for G/U and U/C.

I've seen this with stocks when the price hits a swing high or low and the market reponds but the price of these pairs didn't do anything huge. I was expecting a rally after the daily outside bar on the E/J but that hasn't happened yet.
Does this mark today as a swing high for the E/J?? Is tomorrow going be a big selloff?

Also my broker - Forex.com had speads as low as 1 or 0 on the E/J which I was watching in amazement....
This typically means that buyers were more aggressive than sellers, and vice a verse. However it usually a "swap" where buyers were spooked and got out early by becoming sellers - until price reach a certain level. Now new buyers that are thinking that is the level of a bargain and jump in. The buyers that sold earlier are now upset that it is not sell off, so more buyers come in. When they notice that it hesitates and slightness sell off and back and forth and at the end of the day it slightly forms a doji

Rising prices and rising volume signal a healthy up-trend, while falling prices (which is happening in the futures market) and rising volume signal a healthy down-trend.
  • #4
  • Feb 6, 2013 9:46pm Feb 6, 2013 9:46pm
http://i.imgur.com/tepPBUK.png
  • #5
  • Feb 7, 2013 3:38am Feb 7, 2013 3:38am
Quoting Don M
Today the daily volume on the E/J was 7.5 times normal and the E/U ws 7.9 times normal. Similar for G/U and U/C.


Can someone enlighten me?
I do not have those kinds of volume that you have.
I don`t say what price will do, only that you and I have totally different volume bars.
  • #6
  • Feb 7, 2013 4:30am Feb 7, 2013 4:30am
Hi Folks !

From my point of view there is a big sell off of the Euro and a huge buying activity
regarding the Japanese Yen in place.

I'm thinking long term and these are the clues for a bigger trend change !

Greetings

Bernhard
  • #7
  • Nov 14, 2014 1:57pm Nov 14, 2014 1:57pm
I am not an expert, but it is just weird that Euro keeps going north when their economy is very bad. bad news after bad news seems dont have any correlation with the pair EurJpy.
I am stucked with negative $2,482 on Eur/Jpy

I
  • #8
  • Last Post: Nov 15, 2014 5:21pm Nov 15, 2014 5:21pm
Quoting rajjarindo
I am not an expert, but it is just weird that Euro keeps going north when their economy is very bad. bad news after bad news seems dont have any correlation with the pair EurJpy. I am stucked with negative $2,482 on Eur/Jpy I
Its all about relative value, the EU is in a bad spot but does that make it lessen its value that much? Yes sure you have big funds and speculators shorting/buying but it is mostly just that-speculation. BUT WHEN a central bank announces the fact that they are going to print more money, that will lessen the value of a currency NO MATTER what because of simple supply and demand. WHEN ECB first announced they going to lower interest rate and when they gave more dovish monetary policy measures in there speeches that IS FACT that will make the currency weaken. When they announced this you saw it tanks hundred of pips in minutes.

But also you have to watch as if risk aversion sets in, eg the stock market tanks, this eurjpy will also tank as jpy is a safe haven. But that is also speculation as of right now stock markets still in euphoria mode.

How much capital are you trading with?
All posts are my personal opinion
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