So I’ve been reading about forex trading and trying to learn as much as I can. I’m starting to grasp strategies, charting, etc. Despite my research I still can’t find a basic information on ticker data. I think this is very important because it is the basis of information that we use to chart and make our predictions.
So my question is how do tickers differ between brokers?
For example, analysis uses number of ticks to determine volume. (does this change between brokers)
It seems that the most accurate ticker information is provided by dukascopy, although I am only guessing.
I realize that this would make only minute differences in trading, but as I said I think having understanding of the most basic data provided is key to understanding anything.
Hello and welcome to this forum!
One of the better questions I can read here. Most questions goes like what you can google for easily.
Okay, the ticker data doesn’t differ “that much”. Sure, you can have differences of a few pips based on spread differences and some time differences. But it hardly goes beyond 10 pips and only temporary. The brokers are interested for themself to keep that like it is. Because if it would differ a lot, you could use arbitrage. That is, you could buy at one broker and sell at another. If that would somebody do, the price would then average between the both brokers. So, in reality and most of the time you see just a difference of less than a pip or around that.
The second answer is then clear. Also the tick count is not that much different between brokers in relation. I mean, maybe they differ absolutely, but if you relate one day ticker volume to another, it should be relative the same percentage compared with another broker.
Ty, that does make sense. I guess I was focusing on making intraday trades, but even taking at 15min time I imagine the data is equal.
Yea and even on the minute chart there is not much difference. Afaik not as much that you can profit from it. The spread is higher most times than what you would gain if you would buy/sell at different brokers using arbitrage strats. Just a very few times it could work, but I do not know if that is already good enough to outperform other successful strats.
Another question sort of relating to this. We all recognize certain candle patterns, I find shooting stars and hammers particularly interesting as they could provide a very advantageous low/high to capitalize from. Have you heard of techniques that will attempt to identify candles while they are forming real time.
This would probably relate to what I mentioned earlier about accuracy of real tick data. If you could identify an approximate point to sell, and then check real tick data to pick out what you believe will be a shooting star/hammer.
Will be is somewhat vague. Sure you could try to develop a strat which gives you statistically relevant info about a specific time say at the daily and how the candle would probably close. Anyways, my own experience is that even if you use two or three candles for confirmation it is statistical relevant, but not that much that I would like, lol. So, for instance: If you see a hammer forming on the daily then you could sell at 2 hours before close, but it could be that it will become no hammer. And next day you have a slightly chance the hammer is relevant, but it could also go higher and the hammer is not relevant anymore. If you wait a day and the price goes down, then the probability the hammer is relevant is greater. But then also the price moved and so the profit chance will become smaller. For inventing a successful system you must look for statistical relevant probabilities. If you can get an edge, then you can try your system. No matter if that is based on candles, s/r, pivot points, the moon cycle or whatever.