Thread: Hey...what about Volume?

Hello. . .its been awhile since I've posted. Private and health problems have prevented me from having the ability to post. . .but I have NOT ceased trading or watching the markets. In my continuing attempt to interpret the lessons I learn from my experience in the futures market I have to ask you all here (the more experienced the better). . .how come men and women use the volume information contained in their brokers?

I have to admit I have gone on record here as saying the volume information on the forex market is practically useless. I repent those words. I have been utilizing the volume advice from my forex broker (oanda) and have found that I CAN interpret some of the classes of my futures trading into the forex market. . .perhaps monitoring although not in the exact same way, but back testing are demonstrating to me in utilizing the volume information which most of us have available to us, the potential.

I haven't studied much about VSA (Volume/Spread Analysis), but I do not thing one needs to get so preoccupied with that. As you may recall from previous posts, I am trading Forex, as a means to grow my savings account...I do NOT look at this market for daily income just like I do the forex market howeverthe same principles I trade there, also operate in this market. . .those of order flow.

A big portion of order flow trading is volume. Specifically those volume metrics which are separated by where people are currently transacting. . .the bid or the ask. Therefore the futures market divides the volume as follows: buying quantity = those transacting on the ask (or the bid in the futures market), and selling volume = those speculating on the bid (or the deal in the futures market). Thus it is no problem to locate anomalies in the futures market utilizing this information provided in each candle.

However, this information doesn't exist in the forex market. BUT there is a way to use the tick volume data on the forex market in combination with price's reaction to that volume and come up with nearly the same thing.

How about you personally? Do you use the tick volume data in your trading? Why? Or why not?

Many traders claim they incorporate order flow in their trading. As I know it, order flow is information about bid and ask volume by price amount for closed and pending orders. Footprint chart,Market Depth and Level II for futures reveal order flow. But some order flow traders don't use tools such as footprint chart or Market Depth. They assert the moving average, stochastic or MACD indiors they use show order flow. I'm really perplexed. Can anyone comment on that?

Originally Posted by ;

quote your understanding on the 3 stages is spot on. Your analysis is flawed. Quantity is a tick counter that means it's localized to that particular broker. Eg: broker A has relations to 25 LPs. The tick count, will be higher when compared with broker B whom simply has relations to 10 LPs. Simply because MT4/ECN are tuned to quote best bid/ask. Having more LPs to vett thru will lead to more changes. Only as long as you're trading stocks that requires a centralized exchange, then quantity of a particular instrument will be less or more true

the correlation between sign quantity (Currency Market ) and actual volume (Forex ) is over 90 percent
the greater LPs the closer the correlation.

Originally Posted by ;

Many traders claim they incorporate order flow in their trading. As I understand it, order flow is information about bid and ask volume by price amount for pending and closed orders. Footprint chart,Market Depth and Level II for futures show order flow. But some order flow traders do not use tools like footprint chart or Market Depth. They claim the moving average, stochastic or MACD indiors they use show order flow. I'm very confused. Can anybody comment on that?

There is no way a retail trader can get accurate order flow.

Utilizing indiors/fibo to predict order flow is just a thesis in itself. Like all thesis, assumptions need to be made.
Eg: I will sell eurusd if it retracts to fibo 38.2%. Because order flow indicate to follow the tendency, get in at a retraced price. Fibo amounts are frequently gone to by and retracement. (this is a premise )

Originally Posted by ;

quote there is no way a retail trader can acquire accurate order flow. Employing indiors/fibo to predict order flow is a thesis on your own. Like all thesis, assumptions need to be made. Eg: I will sell eurusd in case it retracts to fibo 38.2%. Because order flow suggest to follow the tendency, get in at a retraced price. And retracement goes to fibo levels. (this is an assumption)

there is no way a retail trader can get accurate order flow 100% correct

However: Order Flow example usdjpy 1M (just occurred )

No assumptions except 1 Buy low, Sell high i.e so called Smart Money (sarcasm intended)





... sufficient to let for a BE and let it go... repeat

Originally Posted by ;

quote there is no way a retail trader can acquire true order flow 100% right But: Order Flow example usdjpy 1M (just occurred ) No assumptions except 1 Buy low, Sell high i.e so called Smart Money (sarcasm intended) image image... enough to allow for a BE and let it go... replicate

Let me disagree with you on that, we mightn't get 100% of this book but we could get access to all it. Of course not in forex but if you use its future in a regulated market which is 99.99 connected you can get it.

Originally Posted by ;

quote Let me disagree with you on that, we may not get 100% of this book but we can have access to all it. Of course not in forex but if you utilize its future at a regulated market that's 99.99 correlated you can have it.

I concur

https://www.nigeriaforextrading.com/...-expected.html

Originally Posted by ;

quote I concur https://www.nigeriaforextrading.com/...ghts-book.html

It ought to be crucial in each trader to know that, but regrettably is a simple fact that most of”traders” ignore.

Originally Posted by ;

quote It should be a must in every trader to know that, but sadly is a fact that most of”traders” discount.

I would rather that many ignore it (:

Originally Posted by ;

quote I'd rather that many dismiss it (:

Do I find after all the years of disparaging the notion that potential edges exist a sign of optimism?