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FXCM's real volume and transactions indicators

  • #1
  • First Post: Aug 17, 2015 12:05pm Aug 17, 2015 12:05pm
I recently got into Forex and am using Volume in my trading. I know how people always used to say "the time volume will really be helpful in Forex will be when they provide actual volume figures and not tick volume". Well this is what the Real volume does right? Even if it's only capturing what the FXCM order books record it must still be alot more usefull and acturate than tick volume. I have compared the two side by side and real volume has more definition for sure.

The problem is that I was not around when the real volume indicator by FXCM trading station was released and I cannot seem to find much information on it. So i'm wondering if its really as good as I think it is?

I have another question about it also. They also have a directional Volume indicator which not only shows the volume but how much of that candle was buy orders and how much were sell orders. Does this not tell us exactly what the Market Makers are doing? If we are seeing large buy orders at a bottom of a range with few sell orders at the top of the range then we can assume money makers are accumilating buys. Isn't this incredibly powerful?

They even have a market flow indicator which basically does this calculation (Volume/transaction). So if there is a spike is shows clearly that there was a unusual amount of volume with very few transactions. This tells us money makers were involved there.

Although I have also read that the real volume does not include institutions so only retail volume.. Not sure how this can be true when a daily candle shows about 4 trillion in trades. Surely this is not only retail.

So did people jump on to trading station and start using these indicators and scrap the tick volume? Or am I giving this too much credit.

thanks
  • #2
  • Aug 17, 2015 3:22pm Aug 17, 2015 3:22pm
Quoting Epidot
I recently got into Forex and am using Volume in my trading. I know how people always used to say "the time volume will really be helpful in Forex will be when they provide actual volume figures and not tick volume". Well this is what the Real volume does right? Even if it's only capturing what the F__M order books record it must still be alot more usefull and acturate than tick volume. I have compared the two side by side and real volume has more definition for sure. The problem is that I was not around when the real volume indicator by F__M trading...
In my opinion it strongly correlates with the tick volume.

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Quoting Epidot
They also have a directional Volume indicator which not only shows the volume but how much of that candle was buy orders and how much were sell orders. Does this not tell us exactly what the Market Makers are doing?
No, this tells you only about the broker's customers, i.e. the retail traders. Perhaps an interesting way to use this indicator would be to notice, say, a lot of buying in retail and the price going down. You could consider selling at this point...

Quoting Epidot
They even have a market flow indicator which basically does this calculation (Volume/transaction). So if there is a spike is shows clearly that there was a unusual amount of volume with very few transactions. This tells us money makers were involved there.
This is all retail. IMO, a better idea can be perhaps obtained by price not moving anywhere (after a strong one-sided move, usually to an area beyond S/R) and the tick volume being very large. This could give you an idea about strong hands buying/selling to launch the price in the opposite direction.


Cheers,
k
  • #3
  • Aug 17, 2015 9:20pm Aug 17, 2015 9:20pm
Hey

On mt4 I use FXCM-USDReal01 server, provides very good high tick volume, higher then most other brokers servers. Yes I know it doesnt show the correct volume but I have found using a cumulative volume idea (attached) to be very accurate. Helps for scalping when looking a key zones finding areas of weakness and strength. I know your not really look for my trading style, but I suppose just shining some light on the fact that tick volume can still be a very indication of price movement.
Attached File(s)
File Type: ex4 COGS'S_Cumulative_Volume v1.1.ex4   9 KB | 1,278 downloads
Learn, a forex trader must, unlearn and relearn he will.
  • #4
  • Dec 15, 2015 2:32pm Dec 15, 2015 2:32pm
Hello, this thread is exaclty what I wanted to ask here. /but as a junior I cant start new thread/
Im interested in volume in trading, I did in MT4 ICM broker, but after some research, I move to trading station platform of FXCM broker.
There is RealVolume , I didnt find "normal"/tick/ volume, but Transactions which should be the same as TickVolume /or not?/ . There is also interesting indicator "market maker index", basically rise when RealVolume rise and Transactions dont. Which is logical..
Also I found Bettervolume indicator in .lua /trading station format/ and this is absolutely same like classic "Volume" on MT4 platform FXCM.
So currently I have three different historygrams showing different things , /RealVolume, Transactions and Tickvolume as you can see in MT4 or also Ninjatrader when trading forex and use FXCM data / . A bit confused. Basically I do not understand why tick volume and transactions are so much different.
I will be very happy if somebody know more then me, and will clear this up to me, or just discuss about this issue, thank you.
  • #5
  • Dec 15, 2015 2:59pm Dec 15, 2015 2:59pm
Quoting matkooooo
Basically I do not understand why tick volume and transactions are so much different.
Because tick volume is just a change in price and nothing more. Example: broker gets data feed from its liquidity provider and due to volatility price changes 100 times per minute and no orders placed. In this case you will see tick volume = 100 and transactions volume = 0
Tick volume means nothing in forex. Its just a number how many times price changed per given time frame.
  • #6
  • Dec 15, 2015 3:27pm Dec 15, 2015 3:27pm
thank you. Im very new in forex /1year/, so I do not want to protest, but I really can see some function of tick volume when analyzing with candles. especially this style of analysis:
Inserted Video
. Generally: big candle-big volume = OK, small candle-low volume=OK, small candle -high volume=activity. Its up on you what you will do with these informations. You can really see it works also in forex, so I cant agree that tickvolume is useless in forex. sorry.
  • #7
  • Dec 15, 2015 5:08pm Dec 15, 2015 5:08pm
Quoting matkooooo
Hello, this thread is exaclty what I wanted to ask here. /but as a junior I cant start new thread/ Im interested in volume in trading, I did in MT4 ICM broker, but after some research, I move to trading station platform of FXCM broker. There is RealVolume , I didnt find "normal"/tick/ volume, but Transactions which should be the same as TickVolume /or not?/ . There is also interesting indicator "market maker index", basically rise when RealVolume rise and Transactions dont. Which is logical.. Also I found Bettervolume indicator in .lua /trading...
Welcome to the forum, Matkooooo

Just to clarify, FXCM does offer Tick Volume on our Trading Station platform, in addition to five new real volume indicators.

Tick Volume shows you how many times the price updated, while Transactions show you how many client orders executed. I discuss the differences between these indicators in this earlier thread: http://www.forexfactory.com/showthread.php?t=491219
  • #8
  • Dec 16, 2015 12:49am Dec 16, 2015 12:49am
Hello,

Thank you very much for answer and useful links. I will come through and study. But for now just one question: if Transactions and RealVolume are only retail, then "Market Movers Index" is not very exact name ? if I understand it right..
I can see it works somehow /"classic" doji candles before strong trends with huge volume and small transactions for example../, but we cant see a real market makers activity , am I right?

thanks
  • #9
  • Dec 16, 2015 12:05pm Dec 16, 2015 12:05pm
Quoting matkooooo
Hello, Thank you very much for answer and useful links. I will come through and study. But for now just one question: if Transactions and RealVolume are only retail, then "Market Movers Index" is not very exact name ? if I understand it right.. I can see it works somehow /"classic" doji candles before strong trends with huge volume and small transactions for example../, but we cant see a real market makers activity , am I right? thanks
You're correct that the Market Movers Index doesn't measure the trading activity of market makers, but that doesn't mean the indicator is named incorrectly. The Market Movers Index shows the ratio of real volume divided into transactions per period, so you can see conviction behind breakouts. Smart money is high volume per transactions. Using FXCMs real volume, the Market Movers Index helps you zero in on specific market dynamics.
  • #10
  • Last Post: Aug 9, 2020 4:29am Aug 9, 2020 4:29am
OP have you found out why a daily candle shows 4 trillion in trades despite only being retail volume yet?
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