Is it true Volume doesn't mean anything in Forex? | Forex Factory

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Is it true Volume doesn't mean anything in Forex?

  • #1
  • First Post: Nov 21, 2013 6:16am Nov 21, 2013 6:16am
I have heard one person say this before and also i heard Steve Nison say the same thing, that volume in forex is useless and volume should only be used in buying not for selling.

So that being said, is volume (ie the standard volume indicator in metatrader for example) any use to our trading?>
  • #2
  • Nov 21, 2013 6:25am Nov 21, 2013 6:25am
Quoting ReyesWhite
So that being said, is volume (ie the standard volume indicator in metatrader for example) any use to our trading?
The volume indicator in MT4 is just a ticks counter. Nothing else.
MT4/MT5 EAs/Indicators/Alerts coder
  • #3
  • Nov 26, 2013 2:07am Nov 26, 2013 2:07am
Tick volume from MT4 may be a nice measure of market activity, but it cannot be used as real volume is used in stock markets for example.
  • #4
  • Nov 26, 2013 1:30pm Nov 26, 2013 1:30pm
Volume can be used in counter trend strategy...

Say you have 3-5 bars in one direction with rising volume at each, soon it will peak and next bar will less volume, if you combine this with STO CCI WPR any one of those with divergence you can successfully scalp against the mirco trend...
  • #5
  • Dec 2, 2013 12:56am Dec 2, 2013 12:56am
Quoting ReyesWhite
I have heard one person say this before and also i heard Steve Nison say the same thing, that volume in forex is useless and volume should only be used in buying not for selling. So that being said, is volume (ie the standard volume indicator in metatrader for example) any use to our trading?>
Volume is quite useless in Forex trading, because the volume you see is brokerage specific. You only see the trading volume of the current broker, so you will not see volume of the whole market, making volume indicator quite useless.
  • #6
  • Dec 2, 2013 2:19am Dec 2, 2013 2:19am
I believe everyone is talking about market depth. Volume is more like a measurement of your position size. If you want to use this information for trading, what exactly are your measuring? The ticks as one member said. That is useful for picking a pair to trade for a fast scalp, so maybe someone has an indicator that monitors the ticks on all pairs and indicates the Most Active ticker. Lets search for something ..
  • #7
  • Dec 2, 2013 3:21am Dec 2, 2013 3:21am
Actually, online brokers rarely provide any internal volume information. The volume information shown in MetaTrader 4 volume indicator is "tick volume", not broker's internal volume.
  • #8
  • Dec 2, 2013 3:32am Dec 2, 2013 3:32am
Quoting olympus999
{quote} You only see the trading volume of the current broker.
Absolutely not. There's no real volume in MT4. As said in my post #2 and also by enivid, the volume provided in MT4 is a simple tick counter.
MT4/MT5 EAs/Indicators/Alerts coder
  • #9
  • Dec 2, 2013 4:10am Dec 2, 2013 4:10am
Whilst it is only broker's tick volume, IMO it has its uses when viewed as an "activity alert" in conjunction with PA, WRBs and S&R areas....
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Trading Levels with WRBs
  • #10
  • Dec 2, 2013 4:15am Dec 2, 2013 4:15am
Quoting Islander
Whilst it is only broker's tick volume, IMO it has its uses when viewed as an "activity alert" in conjunction with PA, WRBs and S&R areas....
Absolutely. My point wasn't that it is useless ... just that it isn't volume.
MT4/MT5 EAs/Indicators/Alerts coder
  • #11
  • Dec 2, 2013 4:47am Dec 2, 2013 4:47am
Quoting FerruFx
{quote} Absolutely. My point wasn't that it is useless ... just that it isn't volume.

NP - you and I are both on the same page. I was just showing one way in which the tick volume can be used
Trading Levels with WRBs
  • #12
  • Dec 2, 2013 4:51am Dec 2, 2013 4:51am
Quoting Islander
{quote} NP - you and I are both on the same page. I was just showing one way in which the tick volume can be used
MT4/MT5 EAs/Indicators/Alerts coder
  • #13
  • Dec 5, 2013 6:30pm Dec 5, 2013 6:30pm
Volume in Forex means nothing, however, I do know that hedge fund traders and professionals use futures volume to gauge the major pairs.

Euro FX would be used for EUR/USD volume...
  • #14
  • Last Post: Dec 6, 2013 2:41am Dec 6, 2013 2:41am
Just like in any other market, volumes means alot. In the case of Forex its the order volume that moves the price to either direction.
Here is the catch however, with the lack of any central FX exchange, and no volume indicators, there is no absolute measure of volume in the market. Well except through an actual " major liquidity provider" orderbook
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