How big a disadvantage is the lack of volume indicator?

[bfd]

Hi,

I think I'm right in thinking that when investing in stocks and shares you can see the volume of buying or selling, where as with Forex this information is not available.

There are indicators like Stochastics which show overbought and oversold, but this is based purely on momentum of price changes and not actual sale volumes.

How much of an advantage is it to be able to see the actual volume of sales and use that information to judge the level of momentum in a price move?

Thanks.

 

[rols]

Hi,

I think I'm right in thinking that when investing in stocks and shares you can see the volume of buying or selling, where as with Forex this information is not available.

There are indicators like Stochastics which show overbought and oversold, but this is based purely on momentum of price changes and not actual sale volumes.

How much of an advantage is it to be able to see the actual volume of sales and use that information to judge the level of momentum in a price move?

Thanks.

There is a huge and very informative discussion about this very issue over on the 'other' TL forum. Worth a peak if you have a mo.

 

[Paul71]

Hi,

I think I'm right in thinking that when investing in stocks and shares you can see the volume of buying or selling, where as with Forex this information is not available.

There are indicators like Stochastics which show overbought and oversold, but this is based purely on momentum of price changes and not actual sale volumes.

How much of an advantage is it to be able to see the actual volume of sales and use that information to judge the level of momentum in a price move?

Thanks.

Good question. I've used volume, i still 'use' volume, but the funny thing is, no matter how i go about my trading activity i still use price, a price, as my only advice.

For me personally, it's either buy side or sell side of a 'market discovered' price.

All i know is this, if you don't know how to guage volume, it will be a distraction at best.

So what i'm telling you is about as much use as t!ts on a snake.

 

[Paul71]

By the way, if you think i'm talking bollux, think about what is needed to move a price higher, it's not just about percieved volume bars on a cheap and cheerful chart?

 

[alfiemal]

Hi bfd,

Pure volume on stocks isnt that useful in my opinion, it does not usually reveal itself until after the move. Level 2 and Time and Sales can show what side the volume is on and I think could be more useful in the short term, however its difficult to master.

As for Forex there is no Volume but about 6.30-7.00AM GMT is the start of the London and European session, this is the most liquid and highest volume session in the world! Also approx 2.30PM GMT the US session begins another high volume session. I stick around these times to catch most of the big moves.

 

[TheRumpledOne]

Does anyone watch volume in Forex?

P.S. there is a volume indicator HERE

 

[nine]

There is no true volume in forex.

The Rumpled One appears to be talking thru a hole in his rumpled one.

 

[TheRumpledOne]

There is no true volume in forex.

The Rumpled One appears to be talking thru a hole in his rumpled one.

I understand that because FOREX is NOT a consolidated market that you don't get the true volume.

However, it doesn't mean that the volume of the liquidity providers on your platform isn't valid unless, of course, they provide bogus numbers.

But the thread is about the lack of a volume indicator.

Didn't your mother teach you to be polite?

 

[montmorencyt2w]

I am not sure if it was in the "other" forum referred to earlier, but somewhere I was reading that volume data supplied by one broker is liable to be less than useful. However, given the right data feed, one can get an aggregate figure coming ultimately from many brokers/sources.

I am personally intrigued by volume, and feel sure it must be part of the picture, although many people seem to manage perfectly well without it.

 

[bfd]

However, it doesn't mean that the volume of the liquidity providers on your platform isn't valid unless, of course, they provide bogus numbers.

I didn't realize any forex platforms had a volume indicator, I don't think that the one I'm using (Oanda) does. I'll check out some others.

I guess the volume from any particular broker is based only on the trades made through that broker, so looking at a selection of volumes from several brokers would give a more accurate account of the currency pair volume overall.

 

[montmorencyt2w]

Well the free demo Metatrader from FXPro.com does, for example, and I am sure that others do.


The VSA "guru" that I was thinking about (but can't remember exactly where I read it, or his name or nickname), talked about getting data from e-Signal, which had combined volume data from many brokers. That would be a paid-for service though.

 

[atomm]

Like other markets, we can trade the forex without the volume as an indicator.