Netdania Forex Volume?

[ramrob]

Would someone be so kind as to briefly explain why netdania offers the volume indicator on its fx charts and no other that I personally have seen does that? Also, what does the data actually reveal, transactions? lots?

I've heard some people claim "Volume in forex is bollox", why is this?

~thanks

 

[gc1]

Not familiar with Netdania but I think you'll find is just the number of price changes within each bar on their platform. Can't do real volume because any one company's share of the total is tiny and no central exchange through which data could be collected.

 

[ramrob]

Not familiar with Netdania but I think you'll find is just the number of price changes within each bar on their platform. Can't do real volume because any one company's share of the total is tiny and no central exchange through which data could be collected.

Not quite sure i follow exactly. Number of price changes as through whichever liquidity provider is providing the data stream?
Sorry if my question is equally unclear.

In other words volume is not used much by forex traders?

 

[gc1]

Sorry, my post yesterday was assuming Netdania were a forex broker/marketmaker, I didn't realize they are a charting company. The market makers generally use number of price changes per bar as a (poor) proxy for volume. I don't see how Netdania could report any meaningful volume data so I presume they are probably doing the same or something similar.

I suspect some currency futures traders (CME fx products) make use of volume, but the problem there is only 6 currencies against the US dollar have any liquidity.