forex volume indicaton

[wasp]

I've been using the metatrader4 chart program and it has an option for volumes (as shown in charts)

Is this a true representation or not as I thought that forex volumes couldn't be regulated or counted?

 

[wasp]

Thats what I thought but it seemed strange to have the option when it can't be true.

 

[whabahaowo]

What they have told me is that what is shown as volume is in fact the number of quote updates they receive in that specific period, it is not a real volume indication but sometimes it can give indications as to a really calm market... it's pretty useless in my opinion.

 

[JumpOff]

MyTrack gives volume on their currency data too - and it looks the same as your chart. I looked at the June EURO contract at Futuresource.com. The price seems to match my chart, but the volume does not match what I see on Sierra with a Mytrack data feed of EURUSD- it's close, but their not getting the vol feed off the futures contract... (or at least not off that contract).

JO

 

[options]

You would think that with todays inovations in computers it would be a fairly straight forward solution to displaying a "central" showing of volume for the fx market.

It's still a bit cloak and dagger with true intentions being hidden.

 

[SOCRATES]

What they have told me is that what is shown as volume is in fact the number of quote updates they receive in that specific period, it is not a real volume indication but sometimes it can give indications as to a really calm market... it's pretty useless in my opinion.

What you are describing is known as Tick Volume.

It is designated Volume of Activity.

It is calculated according to the number of changes that take place in the price within a given period.

In the same way that reading conventional volume requires the acquisition of a specific visual skill, so the reading ot tick data requires a properly developed and parallel visual skill.

The more highly developed these skills become by default, the more accurate the necessary interpretation.