Forex? Discussion

I am not the only one who is not convinced with persistent BS

Volume here is the ‘true’ volume of futures contracts traded through the central exchange, but if you compare this with the proxy volume of the spot forex world, you will be surprised at how closely the two correlate.

Coulling, Anna. Forex Trading Using Volume Price Analysis: Over 100 worked examples in all timeframes (Page 7). . Kindle Edition.
 
Cherry-picked. You should find some productive use of you time after 20Y of trading microlots. Convincing yourself that OTC volume is meaningful is obviously not translating into profits. Most people are not cut-out for trading.
 
But before we move on, let me address one issue immediately which is the criticism leveled at using volume in the world of spot forex. We all know there is no currently central exchange in the spot market, and as such we therefore have to turn to an alternative measure of volume, which is tick activity, and is a proxy for volume. My own view, and proven over many years, is that this volume works perfectly well, and in exactly the same way as in other markets. After all, volume is simply a measure of activity or a lack of activity, and if activity is very high or very low, then this signals participation or a lack of participation by the institutional market makers.

Coulling, Anna. Forex Trading Using Volume Price Analysis: Over 100 worked examples in all timeframes (Page 15). . Kindle Edition.
 
padutrader said:
But before we move on, let me address one issue immediately which is the criticism leveled at using volume in the world of spot forex. We all know there is no currently central exchange in the spot market, and as such we therefore have to turn to an alternative measure of volume, which is tick activity, and is a proxy for volume. My own view, and proven over many years, is that this volume works perfectly well, and in exactly the same way as in other markets. After all, volume is simply a measure of activity or a lack of activity, and if activity is very high or very low, then this signals participation or a lack of participation by the institutional market makers.

Coulling, Anna. Forex Trading Using Volume Price Analysis: Over 100 worked examples in all timeframes (Page 15). . Kindle Edition.
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She's wrong in the sense that it's an acceptable proxy. It basically correlates to bar-height. That's it.
 
Most of the volume these days is done by the HFTs/algo's - they are trading on the micro market without using charts at speeds from millisecond to nanosecond.


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comagnum said:
Most of the volume these days is done by the HFTs/algo's - they are trading on the micro market - millisecond down to nanosecond.


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very true
if they are doing that, they are not moving price very much are they? they make money doing this but it will not affect others who are trading longer term.
also what is important is not absolute volume figures but the co relation or non co relation with price: that is important to discern as far as trade decisions are concerned
 
padutrader said:
But before we move on, let me address one issue immediately which is the criticism leveled at using volume in the world of spot forex. We all know there is no currently central exchange in the spot market, and as such we therefore have to turn to an alternative measure of volume, which is tick activity, and is a proxy for volume. My own view, and proven over many years, is that this volume works perfectly well, and in exactly the same way as in other markets. After all, volume is simply a measure of activity or a lack of activity, and if activity is very high or very low, then this signals participation or a lack of participation by the institutional market makers.

Coulling, Anna. Forex Trading Using Volume Price Analysis: Over 100 worked examples in all timeframes (Page 15). . Kindle Edition.
More...

What has been attempted to get across to you many times now, is that tick volume as you're seeing it, is a measure of the price updates to the data feed. There are updates to the feed that aren't really trading activity. On top of that, your data feed is from a bucket-shop broker, not true interbank ECN feeds; meaning... really worthless.

Knowing that, how can it be a proxy for true volume?
 
contra said:
What has been attempted to get across to you many times now, is that tick volume as you're seeing it, is a measure of the price updates to the data feed. There are updates to the feed that aren't really trading activity. On top of that, your data feed is from a bucket-shop broker, not true interbank ECN feeds; meaning... really worthless.

Knowing that, how can it be a proxy for true volume?
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agree with you. volume data from market makers are garbage.
GARBAGE IN --> GARBAGE OUT --> ZERO SUCCESS

accurate volume data is available in exchanges like CME ....
we can purchase currency futures data from data feed providers.
and there is forum on data feed providers in ET.


for those who are serious about trading you must invest in a good charting
software, plus pay the necessary data fees. there's no short cut to these.

anyway no point arguing with padutrader.
 
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maxinger said:
agree with you. volume data from market makers are garbage.
GARBAGE IN --> GARBAGE OUT --> ZERO SUCCESS

accurate volume data is available in exchanges like CME ....
we can purchase currency futures data from data feed providers.
and there is forum on data feed providers in ET.


for those who are serious about trading you must invest in a good charting
software, plus pay the necessary data fees. there's no short cut to these.

anyway no point arguing with padutrader.
More...


Currency futures data is also pretty worthless, we went over this earlier in the thread if you care to see why.
 
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