Real Volume and Transactions Indicators | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Question: What is the difference between Tick Volume and (true) Volume? 8 replies

FXCM's real volume and transactions indicators 9 replies

Volume MACD and Linear Regression Volume Overlay 3 replies

Volume for indices, tick and the exchange derived volume 4 replies

Help with % increase in Up volume and Down Volume 2 replies

Attachments: Real Volume and Transactions Indicators
Exit Attachments

Real Volume and Transactions Indicators

  • #1
  • First Post: Edited 7:05pm Jun 23, 2014 6:45pm | Edited 7:05pm
This thread will focus on how Real Volume and Transactions indicators can be used for trading in the forex market.

 

  1. Free download for Trading Station charts
  2. Twice-daily updates www.dailyfx.com/volume


Real Volume and Transactions indicators used to be hard to come by for forex traders. Previously, we had to make do with approximations such as tick volume which, while useful, only tell part of the story. As you can see from a 1-minute chart below of the recent ECB announcement there's definitely a correlation between Real Volume (top), Tick Volume (middle) and Transactions Volume (bottom).


http://i.imgur.com/nnSJFpR.png



However, there are notable differences when there is a large spike in real trading volume. This reveals a limitation with tick volume in that it has no way of showing when a large amount of volume trades at a single price, since that would only be counted as a single tick. Real Volume and Transactions indicators can thus provide new perspectives on what traders are doing during major news events, especially since they work even on 1-minute charts.


To summarize:

  1. Real Volume shows you how many currency units traded
  2. Transactions show you how many client orders executed
  3. Tick Volume shows you how many times the price updated


While each of them can be valuable in its own way, this discussion will focus on Real Volume and Transaction indicators, since this information is new in retail forex.

  • #2
  • Jun 23, 2014 8:59pm Jun 23, 2014 8:59pm
Quoting Jason Rogers
This thread will focus on how Real Volume and Transactions indicators can be used for trading in the forex market. Free download for Trading Station charts Twice-daily updates www.dailyfx.com/volume Real Volume and Transactions indicators used to be hard to come by for forex traders. Previously, we had to make do with approximations such as tick volume which, while useful, only tell part of the story. As you can see from a 1-minute chart below of the recent ECB announcement...
I'm sure the mass majority of "Volume" traders here at FF will find this thread an invaluable source of information............
Markets are not efficient, rather they are effective - Jones
  • #3
  • Jun 24, 2014 1:21am Jun 24, 2014 1:21am
How come you are sure?
  • #4
  • Jun 24, 2014 1:57am Jun 24, 2014 1:57am
Quoting olsen-yersen
How come you are sure?
I was being facetious....................
Markets are not efficient, rather they are effective - Jones
  • #5
  • Jun 24, 2014 2:55am Jun 24, 2014 2:55am
I always maintained that if a volume indicator cannot be used for analysis on M1 charts then it's worthless.
I'd be watching maybe you might come up with an MQL version.
Let it turn and find your entry.
  • #6
  • Jun 25, 2014 12:36pm Jun 25, 2014 12:36pm
Quoting Intrepidpips
I always maintained that if a volume indicator cannot be used for analysis on M1 charts then it's worthless.
Hi Intrepedipips,

The Real Volume and Transactions indicators work on M1 charts along with the following time frames: m1, m5, m15, m30, H1, H2, H3, H4, H6, H8, D1 and W1.

http://i.imgur.com/KB2mmW9.png



Quoting Intrepidpips
I'd be watching maybe you might come up with an MQL version.
While these real volume indicators are only available on Trading Station charts, if you have either a live or demo MT4 account with FXCM, then your MT4 login will also work to access the Trading Station platform.
  • #7
  • Jun 25, 2014 1:44pm Jun 25, 2014 1:44pm
Quoting Jason Rogers
{quote} Hi Intrepedipips, The Real Volume and Transactions indicators work on M1 charts along with the following time frames: m1, m5, m15, m30, H1, H2, H3, H4, H6, H8, D1 and W1. {image} {quote} While these real volume indicators are only available on Trading Station charts, if you have either a live or demo MT4 account with FXCM, then your MT4 login will also work to access the Trading Station platform.
Thanks Jason will give it a good look soon.
Let it turn and find your entry.
  • #8
  • Edited 7:06pm Jun 25, 2014 6:55pm | Edited 7:06pm
Quoting Jason Rogers
Real Volume shows you how many currency units traded
To clarify this further, the Real Volume indicator shows the total volume of live trades during a specified period. Total volume is calculated from the sum of individual transactions. For example:

  1. Client A buys 10K EUR/USD, sells 10K EUR/USD = 20,000 in volume
  2. Client B buys 10K EUR/USD, buys 20K EUR/USD = 30,000 in volume
  3. Total Real Volume = 50,000

http://i.imgur.com/he64eW4.png

  • #9
  • Jun 26, 2014 7:32am Jun 26, 2014 7:32am
Is this just the volume of retail traders at FXCM - or does it include volume from FXCMPro or any other institutional offerings FXCM has?
  • #10
  • Jun 26, 2014 2:05pm Jun 26, 2014 2:05pm
Quoting investwbtc
Is this just the volume of retail traders at FXCM - or does it include volume from FXCMPro or any other institutional offerings FXCM has?
Hi Investwbtc,

The Real Volume and Transactions indicators include information from all the retail traders at FXCM, but not from all institutional traders at FXCM Pro. To give you an idea of the proportion of total retail volume that represents, below is a table comparing our retail volume to that of other forex brokers. The numbers shown are in billions of dollars.

http://i.imgur.com/bo7Nbgz.png


The stats above are from the Forex Magnates industry report for Q4 2011. I would post something more recent, but that's the last report that's available to non-subscribers. I hope the authors won't mind me revealing that even their latest report for Q4 2013 confirms FXCM's lead over the other firms listed above in terms of monthly trading volume although, as you probably know, volumes were down across the board in 2013 due to lower volatility.
  • #11
  • Jun 26, 2014 6:34pm Jun 26, 2014 6:34pm
In this video, DailyFX quantitative strategist David Rodriguez discusses ways to use the Real Volume and Transactions indicators.

Inserted Video
  • #12
  • Jun 26, 2014 6:41pm Jun 26, 2014 6:41pm
Quoting Intrepidpips
{quote} Thanks Jason will give it a good look soon.
I'm interested in learning more about how you use M1 volume analysis as part of your trading!
  • #13
  • Jun 27, 2014 8:51am Jun 27, 2014 8:51am
Quoting Jason Rogers
{quote} I'm interested in learning more about how you use M1 volume analysis as part of your trading!
All the Volume indicators I've tried out in the past just did not satisfy me, I have a way of looking at charts and if the FXCM indie makes sense with my paradigms then I'd have my version of the "Holy Grail".
I am about downloading the Trading Station platform and the add on and hopefully this week end will go thru it.
Let it turn and find your entry.
  • #14
  • Jul 1, 2014 7:39pm Jul 1, 2014 7:39pm
Quoting Intrepidpips
I am about downloading the Trading Station platform and the add on and hopefully this week end will go thru it.
It's rare that NFP would be released on a Thursday, but this week's July 4 holiday has pushed the release ahead a day. And the ECB rate decision also happens to be coming out on Thursday as well. Should make for an exciting day of trading!

http://i.imgur.com/x8tXZmx.png



Do you think Real Volume and Transactions will be even higher than last NFP as a result?

http://i.imgur.com/vHoHC0f.png

  • #15
  • Jul 2, 2014 5:44am Jul 2, 2014 5:44am
Quoting Jason Rogers
{quote} It's rare that NFP would be released on a Thursday, but this week's July 4 holiday has pushed the release ahead a day. And the ECB rate decision also happens to be coming out on Thursday as well. Should make for an exciting day of trading! {image} Do you think Real Volume and Transactions will be even higher than last NFP as a result? {image}
The Real Volume and Transactions failed to load on my terminal.
I only have Tick Volume, maybe I did something wrong?
Attached Image (click to enlarge)
Click to Enlarge Name: _2014-07-02_11-32-20_VOLUME NEEDED.png Size: 84 KB
Let it turn and find your entry.
  • #16
  • Jul 2, 2014 5:40pm Jul 2, 2014 5:40pm
Quoting Intrepidpips
{quote} The Real Volume and Transactions failed to load on my terminal. I only have Tick Volume, maybe I did something wrong? {image}
After you install the real volume indicators, right-click on your chart and select "Add Indicators". In the window that appears, you will see these indicators labeled as REAL VOLUME and TRANSACTIONS.

http://i.imgur.com/FbYh7rX.png


Please let me know whether or not that works for you.
  • #17
  • Jul 3, 2014 5:03pm Jul 3, 2014 5:03pm
Quoting Jason Rogers
{quote} It's rare that NFP would be released on a Thursday, but this week's July 4 holiday has pushed the release ahead a day. And the ECB rate decision also happens to be coming out on Thursday as well. Should make for an exciting day of trading! {image} Do you think Real Volume and Transactions will be even higher than last NFP as a result? {image}
As it turns out, Real Volume reached 135 million, and Transactions reached 5,500 for EUR/USD during the minute NFP was released today which is less than last month's NFP on both counts.

http://www.forex-tsd.com/images/imported/2014/07/40.jpg

  • #18
  • Jul 8, 2014 1:11pm Jul 8, 2014 1:11pm
SSI and Real Volume indicators for EUR/JPY

The latest reading from the Speculative Sentiment Index (SSI) for EUR/JPY stands at 1.29 as 56% of traders are long (1.29 long positions for every short position). Yesterday the ratio was 1.17; 54% of open positions were long.

https://media.dailyfx.com/illustrati..._Picture_1.png


Long positions are 8.7% higher than yesterday and 0.0% below levels seen last week. Short positions are 1.8% lower than yesterday and 7.2% below levels seen last week.

Since SSI is a contrarian indicator to price action, the fact that the majority of traders are long gives signal that EUR/JPY may continue lower.

https://media.dailyfx.com/illustrati...0000_i1040.png


The trading crowd has grown further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.

http://i.imgur.com/ncylKaG.png


Notice in the EUR/JPY chart above how Real Volume (top) spiked to over 2.4 billion on April 22nd while Transactions (middle) and Tick Volume (bottom) did not have a corresponding spikes.

What could this indicate?
  • #19
  • Jul 9, 2014 5:55pm Jul 9, 2014 5:55pm
Strategy Video: Volume for Risk Analysis on EUR/USD Trade Setups

Some believe that most technical indicators are similar in that they are derived from the same thing: price. Volume, however, is a unique and separate appraisal of the market that can meaningfully improve our analysis of the market or individual trade opportunities.

In today's strategy video, John Kicklighter, Chief Strategist for DailyFX, discusses how this information can be used to give us greater insight into broader market conditions as well as shape more distinct trade setups - with a reference to risk trends, the S&P 500, EUR/USD, GBP/USD, USD/JPY and others.

Inserted Video


Talking Points:

  1. The FX market is decentralized, meaning there is no market-wide volume measures
  2. However, Real Volume and Transaction indicators can give a good measure of speculative activity
  3. We can use volume as both an overview analysis technique and as an individual trade filter

  • #20
  • Jul 16, 2014 2:16am Jul 16, 2014 2:16am
Well, I'm trying to load Real Volume and Transactions indicators and they fail to show me anything, I see only a line in a middle, the indicator shows only that it is loading and nothing happens..
0 traders viewing now