Volume on indices

2be

Experienced member
1,857 292
Using volume alongside of bar chart is important if not absolutely vital for traders.

In my experience volume has become very important, and here lies an area of further research, even purely on technical level, as simple as where, or which platform and charting software provides a reliable volume (real volume as opposed of tick volume) data.

I know that for Forex, there is only tick volume that is available.

Indices, and I trade DAX and DOW, but generally indices volume data is available, apart from a tick volume.

Currently I use IG Proreral charting, but would like another source to compare.
I also use MT4, but find tick volume on MT4 not that useful, especially on shorter TFs as the Proreal volume.

I would be grateful for comments on that subject, especially as to which platforms and charting software provide a good and reliable volume data, including a live volume data which can be utilised on shorter TFs as well as on loner TFs.

My intention is to sharpen my perspective on that subject, please forgive me if you find this to be too basic.

Many thanks to all that are willing to contribute on this tread!

Best wishes to all,

2be
 
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J_C_Anderson

Active member
116 17
If you need, for example, S&P 500 volume, you can look either at SPY ETF or futures like ES. For such purpose you can use various platforms like Thinkorswim (by TD Ameritrade) or TWS (by Interactive brokers).
 
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2be

Experienced member
1,857 292
If you need, for example, S&P 500 volume, you can look either at SPY ETF or futures like ES. For such purpose you can use various platforms like Thinkorswim (by TD Ameritrade) or TWS (by Interactive brokers).
Thanks for your post.

Thinkorswim - it is not possible to open an account in the UK

I am not too sure about TWS as the volume might be derived from the data gathered and generated by their own platform.

Have been looking at ProRealTime and it looks interesting.
Will have a chat with them tomorrow.
ProRealTime does not provide volume for DJIA FTR on the end of day feed,(for free) but they provide volume for DJIA (I think pit time), will have to check it with them.
If they provide real time data with real volume, the charting looks reasonably priced, and the charts display slightly different data, including volume compared with the IG linked Proreal data.
Will know more tomorrow after calling them.
It might be impossible for the future's including DJIA Future to have a volume derived independently from the brokers, platform providers and so on, if so there will be another challenge to trade the DJIA Futures using the real "Pit Time "data (charts including volume), the good thing is that DJIA is the foundational security from which the DJIA future's market is derived.

More research is needed.
 

2be

Experienced member
1,857 292
The research into the volume data and how it is made available is proving to be very interesting.
It is a bit like trying to find a reason behind the price movements in a period of comparatively little market activity. Have anyone seen kites flying high without the wind? At times PA is "so complex" that it seems to deny the common sense. That needs to be taken into account, studied and thoroughly investigated. It is not impossible, but it is not that easy either.

After spending some time doing so, there seems to be a reasonable progress.
Would not like to bore you with the details, I would only point to the facts that proved to be important for traders over many years and without a doubt are important now.
Take for example a well documented activity of "tape reading". What constitutes tape reading, what data is analysed and so forth. The next question is the integrity of the used data.
Closer proximity to the real not compromised data by the "market complexity" is important, but it does not negate nor diminish other crucially important ingredients of a well put together trading strategy.

Studying the VSA is a good start in respect of the importance of volume, make sure that the volume data in not compromised, and if it has been compromised, it will be found out to be so by the effects.

Good trading to all,

2be
 

2be

Experienced member
1,857 292
It looks that it is likely that IG pro-real charting is displaying volume generated by IG, they are Market Maker above all.
I find it more useful than tick volume on MT4 , but??? Please draw your own conclusion/s.
Spoken with ProRealTime and there are few options opened. The volume data is derived from the exchanges, so it is more likely to be of more utility:):cool:

The cost will easily be covered by that arrangement, or by opening IB acc, though Spread-betting is out of question with IB.
I mainly trade DOW and DAX30 futures, their CFD margin requirements are reasonable by today standards.

J C Anderson post has been very useful, for UK the only option is TWS (by Interactive brokers).
Pity Thinkorswim is not accessible here.



Ideas and other points of view are very welcomed on that subject.
 
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Trader333

Moderator
8,490 881
I am not too sure about TWS as the volume might be derived from the data gathered and generated by their own platform
Unless something has changed with IB then you are right that their volume data is derived from their own trades.
 
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2be

Experienced member
1,857 292
I am interested in ProRealTime charting software with a direct data feed from CBOT to get E-mini DOW Jones with the order book. Such arrangement is likely to be totally independent and data feed not contaminated by a broker or MM, it is also not linked to IG , IB or any other broker.
There are possibilities to get real data feed from other exchanges, according to the demands of traded instrument/s.
Has anybody got some experience with that provider. More info available from PRT site.
Please feel free to PM me if not happy sharing on this thread.
2be
 
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2be

Experienced member
1,857 292
After some searching and communicating I have resolved the issue of Volume of the indices I trade to a fair degree of satisfaction.

Good trades to all,

2be