I wanted to ask you doubt ... In technical action of prices you guys can use the VOLUME Forex how I use the stock exchange? If the answer is no ... Could someone explain to me why I can not use the Volume?
First of all I would ask you do you understand what volume is and how it affects the market ?
Secondly I would ask have you ever traded on a stock exchange ?
And do you know the difference between a centralized stock exchange and how the forex market works ?
In an equities based stock exchange I would say most definately volume can play a part in your trading.
Unlike other financial markets for example the Australian Stock Exchange (ASX) or the American Stock Exchange (NASDAQ) that operate at a centralized location the worldwide forex market does not have a central location. It is a global network of banks, financial institutions and individual forex traders all of these involved in the buying and selling of national currencies.
So when trading with a platform with a particular broker, essentially you are getting the "volume" that the particular broker has access to not the entire forex market.
Now to me this is why, in my opinion, using volume in the forex market is a waste of time.
Of course there are many who base their whole trading method around volume in the forex market, but essentially I can not possibly see how the information they are getting is correct unless they have the ability to get information from every single institution around the globe simultaneously in regards to what is being traded at any given time, quite a task I would imagine.
But like I always say, if you have a method that works for you, and that method is what you believe to be volume in the FX market, then by all means continue to use this.
I hope this brief explanation may give you some insight into why you cant use volume in the forex market.
Cheers.
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