Hello, dear readers forex blog tradelikeapro.ru.Continuing the theme of the analysis of the volume of the forex, or rather an introduction to VSA technology.Today we talk about the complexities of determining the volume of trading on forex, we choose the most appropriate source of information on volumes and analyze a very interesting indicator
volumes are important, becausein their analysis, we identify the activity "professional money", which significantly affect the forex market.The imbalance of supply / demand creates price movements, VSA helps determine the current mood of the market and follow the big players.
complexity of determining the volume of the forex
However, when analyzing the volume is on the currency market, we are faced with some difficulties.The fact that forex is decentralized, so to get accurate information about the trading volume is not possible.
How to be?How to get information on the volume?The exact information we can not get, but we do no
1. The volume of the market of futures
2. Tick volume
volumes from the market
futures Futures is a contract (agreement) the sale of an asset in a certain amount and a certainfuture date at a price agreed today.
currency futures traded on the Chicago Mercantile Exchange (Chicago Mercantile Exchange), abbreviated CME.In general, the volume of trading in currency futures give a similar picture with what is happening on the spot market and can be used to analyze the situation in the forex.
Tick volume - the number of price fluctuations over time.That teak volume contains default data to the terminal Metatrader 4. This is not a real volume, and only the number of changes in currency rates.Nevertheless, the data volume is quite teak can be used to calculate the relative value trading volumes.After all, for the price moved one tick, you need to sell or buy a certain number of contracts, which is impossible without the infusion of money.Therefore, the size of teak volume it is possible to judge the real extent.
«Where other data on the volume unavailable, can use tick volume.»
Tom Williams, the founder of modern techniques VSA.
In addition, the author of VSA in his book "Hosts market" clearly suggests the possibility of using teak volume.Incidentally, the program TradeGuider, produced under his supervision, it is also used for the analysis of tick volume of the forex market.
Since it is better to watch the volume?
to this question is no single answer.If you look at the screenshot below to set to the same graphic indicators of teak (above) and the amount of a CME Exchange (below), you will see that the analysis of the relative volume they give approximately the same data.Judge what is the relative volume (high, medium or low), you can apply any of these indicators.So just use what you closer and more convenient.
(the image is enlarged by clicking)
indicator signals Description Better Volume
Superior indicator tick volume Better Volume automatically evaluates the current volume and spread candles, comparing them with previous values, and gives us a kind of signals which indicate the presence of a large /small volume and largest spread.Here is a list of color signals that appear in the histogram Better Volume.
Red - means that there is a large volume and wide spread on up bar.It appears at the beginning and end of the upward trend, as well as corrections during the downtrend.
White - means high volume and wide spread on down the bar.It appears at the beginning and at the end of a bearish trend, as well as corrections in an uptrend.
Yellow - means a small volume.It appears at the end of the trend, as well as during corrections.
Green - indicates the presence of a bar with a small spread and a significant amount.It appears at the end of the trend (the transfer of assets from the market makers a simple traders) and at the time of taking profits in the middle of the trends.
Download volume indicators
(indicators set by the standard instructions)
Important!Nuances of the installation in new builds Metatrader 4
P.S.Since September 2013 Cluster Volume indicator for the work requires activation.Details here.