volfixtrader
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Hi guys
I'd like to share with idea about trading based on volumetric analysis. Everyone of us know that volume is too important data to ignore it. When we trade FOREX we can't see true volume. But Forex Market, as well as other markets are controlled by big players. They may be central banks, hedge funds, large multinational companies that operate in different countries. Before we talk about FOREX – you need to understand that each currency has a guide. This is an absolute analog of the currency pair at the Chicago Mercantile Exchange (CME). For example, EUR / USD pair has a ticker 6E, CAD / USD pair has a ticker 6C etc.
Since Forex is a decentralized global curb market, respectively there’re no clear criteria for the formation of foreign exchange rates. FOREX operates through a network of financial institutions, each of which may affect the price of the currency as well as its volume. We can’t clearly track the volumes. They will be not correct.
However, most of the big players are also trading on the CME, buying and selling futures contracts, options and other financial instruments. For many, it is more reliable, because the market is governed by laws and regulations, as well as giving more opportunities to trade. And since, according to the rules of the Exchange, all transactions are recorded at the exchange, we can see the volume and see the big players.
When we see volumes on CME it is more easy to predict a price movement. Huge volumes like fuel for price movement. Often price move fast after "loading" by volumes. I show some examples. It's very clear and logical.
I'd like to share with idea about trading based on volumetric analysis. Everyone of us know that volume is too important data to ignore it. When we trade FOREX we can't see true volume. But Forex Market, as well as other markets are controlled by big players. They may be central banks, hedge funds, large multinational companies that operate in different countries. Before we talk about FOREX – you need to understand that each currency has a guide. This is an absolute analog of the currency pair at the Chicago Mercantile Exchange (CME). For example, EUR / USD pair has a ticker 6E, CAD / USD pair has a ticker 6C etc.
Since Forex is a decentralized global curb market, respectively there’re no clear criteria for the formation of foreign exchange rates. FOREX operates through a network of financial institutions, each of which may affect the price of the currency as well as its volume. We can’t clearly track the volumes. They will be not correct.
However, most of the big players are also trading on the CME, buying and selling futures contracts, options and other financial instruments. For many, it is more reliable, because the market is governed by laws and regulations, as well as giving more opportunities to trade. And since, according to the rules of the Exchange, all transactions are recorded at the exchange, we can see the volume and see the big players.
When we see volumes on CME it is more easy to predict a price movement. Huge volumes like fuel for price movement. Often price move fast after "loading" by volumes. I show some examples. It's very clear and logical.
