As I understand it, volume in currency market (unlike in stock markets) is impossible to accurately measure in real time - since there is no centralised exchange through which it is traded. Correct me if I'm wrong, but the 'Real Volume' indicator on your platform just shows the volume of trades passing through your broker. Does this make the volume indicator useless, or is it a representative sample of the actual volume?
- #3
- Mar 22, 2016 5:43pm Mar 22, 2016 5:43pm
- Joined Jan 2011 | Status: Senior Trader | 1,475 Posts
it's more than worthless, there is no volume data in forex,
what you see in Mt4 is not volume at all, it is just ticks, 1 tick is 1 trade someone made,
but you can't see how many lots that trade was, it could have been 1 lot or 1000 lots,
it will still print as only 1 tick, the reason why this is, is because fx is not traded at an exchange like stocks is,
tf is traded at small pools all over the world and every pool is closed to the outside so no one have access to the intire number of pools.
therefore, the complete volume traded can not be known. only a single broker would know, how much volume have traded in his brokerage one day,
sure, volume data could be taken from this and put into an indicator, but I am pretty sure that this is confidential information.
and it will still only show you a tiny speck of the volume of the intire market, it would be like a drop in the ocean,
so it's still useless.
what you see in Mt4 is not volume at all, it is just ticks, 1 tick is 1 trade someone made,
but you can't see how many lots that trade was, it could have been 1 lot or 1000 lots,
it will still print as only 1 tick, the reason why this is, is because fx is not traded at an exchange like stocks is,
tf is traded at small pools all over the world and every pool is closed to the outside so no one have access to the intire number of pools.
therefore, the complete volume traded can not be known. only a single broker would know, how much volume have traded in his brokerage one day,
sure, volume data could be taken from this and put into an indicator, but I am pretty sure that this is confidential information.
and it will still only show you a tiny speck of the volume of the intire market, it would be like a drop in the ocean,
so it's still useless.
Bulls are stupid Animals!especially when Im short!
- #4
- Mar 22, 2016 10:22pm Mar 22, 2016 10:22pm
- Joined Dec 2013 | Status: Trader | 1,942 Posts
Learn, a forex trader must, unlearn and relearn he will.
- #5
- Mar 23, 2016 1:36am Mar 23, 2016 1:36am
- Joined Mar 2011 | Status: I should be on your ignore list | 5,597 Posts
- #7
- Last Post: Mar 23, 2016 2:23pm Mar 23, 2016 2:23pm
- Joined Mar 2011 | Status: I should be on your ignore list | 5,597 Posts