The volume formula. | Forex Factory

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The volume formula.

  • #1
  • First Post: Aug 1, 2006 3:10pm Aug 1, 2006 3:10pm
I am using intellicharts and they do not have a volume indicator. I would like to try and create one myself but i do not know the formula and the variables that it consists of. Could anyone help? Thanks!
Sergiu
Stubbornly persistent
  • #2
  • Aug 1, 2006 4:39pm Aug 1, 2006 4:39pm
Mumble... volume could not be an indicator, maybe it's an option for the chart.

If they don't have volume it probably because there is not volume in the data feed, since volume is a basic piece of data, like OHLC.
  • #3
  • Aug 2, 2006 1:21am Aug 2, 2006 1:21am
Volume in forex is price volume and NOT volume traded as in number of contracts or positions.
Therefore it is useless...
  • #4
  • Aug 2, 2006 1:54am Aug 2, 2006 1:54am
What would be the formula for determining price volume?
Stubbornly persistent
  • #5
  • Aug 2, 2006 7:06am Aug 2, 2006 7:06am
Quoting Liquid4x
Volume in forex is price volume and NOT volume traded as in number of contracts or positions.
Therefore it is useless...
Whatever it is, it's not useless.
In fact it is doing the usual patterns (e.g. volume climax).
Also the Force Index i also use in trading futures, is behaving the same way in forex, so it is of great use to me.
  • #6
  • Aug 2, 2006 7:31am Aug 2, 2006 7:31am
Whenever there is a Price Tick on your Brkrs Server, Volume increases by One.

Therefore it Counts Number of Trades FOR YOUR Brkr, Not Number of Lots.
  • #7
  • Aug 2, 2006 9:22am Aug 2, 2006 9:22am
In futures the volume indicator is different. It's the number of shares or contracts traded in the market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller, then the volume for that period increases by 100 shares based on that transaction. Therefore in furures the volume gives you the insight on order flow. In forex you basically trade against the house (dealing desk broker) and their order flow is a mistery.
  • #8
  • Aug 2, 2006 9:23am Aug 2, 2006 9:23am
Quoting Bemac
Whenever there is a Price Tick on your Brkrs Server, Volume increases by One.

Therefore it Counts Number of Trades FOR YOUR Brkr, Not Number of Lots.
Thank You for the explanation.

I know it is not the same as number of lots, but what is important for using "volume" in forex technical analisys is the relation between "volume" readings from bar to bar. If "volume" increases together with price or not, and so on.

To this purposes, the number of trades for a broker (if the broker is not small) is as good as the real number of lots. In other markets this is the number of ticks for each bar, a misure one can use in place of number of lots and obtain almost the same results.

I understand we have different position on this subject, i did not want to argue at all, just explain my experience.
  • #9
  • Last Post: Aug 2, 2006 10:00am Aug 2, 2006 10:00am
Quoting jagui
Thank You for the explanation.

I know it is not the same as number of lots, but what is important for using "volume" in forex technical analisys is the relation between "volume" readings from bar to bar. If "volume" increases together with price or not, and so on.

To this purposes, the number of trades for a broker (if the broker is not small) is as good as the real number of lots. In other markets this is the number of ticks for each bar, a misure one can use in place of number of lots and obtain almost the same results.

I understand we have different position on this subject, i did not want to argue at all, just explain my experience.
No problem Jagui, If everyone agreed, there would be no market to discuss.

I agree that it does have relevence in forex and do use it as a facet of my insight into market activity.

When Trading Fx, I could really care less [on the retail side] if trader 'A' has 100 lots open or 10 or 1. What I do care about is Price Falling TradeVolume Increasing or Price Falling TradeVolume Decreasing etc etc...

This gives me a perspective on the percentage of Traders that are Bullish v Bearish. However, until they publish Open Interest [wont happen], the perspective is skewed.
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