The truth is that what the indicator displays is NOT true volume but a simple measure of the number of ticks received for a given time period. Percentage Price Oscillator PPO. Pink indicates the beginning of a trend continuation or reversal. We have price candles, volume bars, and. An uptrend is strong and healthy if Volume increases as price moves with the trend and decreases when price goes counter trend correction periods. I recommend going to this link to read the steps yourself.
Simply put, capital one forex company market is just too large and has too many exchanges. For any given forex broker to have a true volume indicator, it would need to have feeds from every bank in the world which exchanges one currency for another, detailing the size of each transaction.
This is not practical and probably not possible today. In fact, the only way in which we could have accurate volume ofrex would be if forex was traded in a centralized exchange, something which will likely not happen due to the flexibility independent feeds give to inter-bank negotiations. But what is that indicator you see on your meaninf platform?
Is this indicator displaying volume? How does it calculate it? The truth is that what the indicator displays is NOT true volume but a simple measure of the number of ticks received for a given fores period. Is the number of ticks directly proportional to volume? Since the amount of money is not proportional to the number of ticks. Is it completely useless then? It still can be used on some analysis in which knowing market activity is important but it cannot be used to validate patterns and do volume analysis like on the stock and futures markets, simply because it is not the same variable.
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I hope you enjoyed the article! Posted in Articleslearning forex Tags: system design. You can leave a responseor trackback from your gorex site. Click here to cancel reply. Mail will not be published required. Trading in the FX market using mechanical trading strategies. Volume in Forex… Does it Mean Anything? Generally speaking, in forex trading we only have one source of meanign to make trading decisions volum price.
In the foreign exchange market, due to the lack of a meaninb exchange, we lack one of the most useful pieces of information available on the futures and stock markets, volume. This additional data tells us exactly the amount of money or volume moved by buyers and sellers which caused any given movement in price within the market at any given time, something which is basic to understand price formations, validate patterns and trade with generally more accuracy. But what is that volume indicator that shows in your trading platform then?
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Volume - forex technical indicator
Video embedded · What is ' Volume ' Volume is the number of shares or contracts traded in a security or an entire market during a given period of time. For every buyer, there is.
Volume - Quick Summary. Trading with Volume indicator offers the following features: Volume confirms the strength of a trend or suggests about its weakness.
This article provides a great in-depth analysis of how to incorporate volume into your Forex trading.