Technical Analysis on High vs Low Volume Instruments

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metatrader54

What are the differences? Say an illiquid instrument vs a liquid instrument such as EURUSD, does it move better “technically”? Does higher volume help you to push price with smart money?

Are your stats better on a liquid or illiquid market?
 
metatrader54 said:
Sorry I meant high volume instruments like the EURUSD compared to say a random cryptocurrency or third world currency.
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Every instrument has their own factors that make them move. Instruments as in equities, forex, crypto, etc...

Liquidity is key, you want to get in and out. I don't know how you would formulate a trading strategy based on an illiquid market. I would imagine the slippage alone would render the best models useless.

I could be wrong though. I'm no expert. Maybe theres some crazy spread trading strategy that attacks illiquid markets with crazy bid/ask prices and does some magic.
 
I will do such trades in stocks so long as they have somewhat decent options so I can hedge, I will sell short a down trending heavy volume company/buy lighter volume company as a spread in same sector, they don't come up too often, but marvels of automation...
 
metatrader54 said:
What are the differences? Say an illiquid instrument vs a liquid instrument such as EURUSD, does it move better “technically”? Does higher volume help you to push price with smart money?

Are your stats better on a liquid or illiquid market?
More...
%%
Depends; RE is the ultimate low[ or No volume LOL] volume market+ profitable. So it really depends.:cool::cool:
 
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