See where it goes I guess? I should have left some open - if I’d realised it was due to Smaghi running his mouth about raising Eurozone interest rates to combat rising prices I would have stayed in longer but I was hungry and wanted to go out for some lunch. Should have engaged that thinking machine inside my skull a bit more.
Edit: Oh you made 15%? 
Very nice - early weekend so!
Hehe… I only look volume and I don’t watch any news and I don’t care about what moves prices. 
News and all those would only mess my head.
And I just can’t resist… I’m short. Risking only 0.5%. I’m so crazy sometimes.
I will totally party this weekend.
Probably not a bad trade going short. The volumes seem to support it. And the idea that the ECB can actually raise rates now is a little unlikely - unless they want to flatten the recovery in most of the EU countries. I’m guessing they just wanted to try and offset the news that the ECB were out buying Portuguese bonds again today. And it worked for them for now at least it seems.
That half yard down there @1.3550/55 wasn’t a rumour after all…I guess.
Have a good weekend, all.
Yes, volume supports it. But friday, and getting late soon anyway. So again I could say I don’t feel this short here. But only risking 0.5% so. I don’t really care. 
I will only laugh if it gets stopped.
Edit… Okay, 0.5% profit taken.
Alright. 0.5% bonus from that. Okay… I seriously stop this week to that. It was great. Great way to end this week, massive bonus move. And now, party hard!
Hopefully this illustrates what we are doing here pretty well, the two little black lines on the Volume indicator show volume peaks confirming a stop in the down move, the I’ve got the longer term fib in the 3rd column that shows a potential for a nice gain - not too hard?
The Joke is it was Friday and I wanted lunch so I shut up shop form the day and closed for 10 PIPS or so a few minutes after the entry - anyway, sometimes you’d be sat there for hours and nothing.
Hey all…good trading
Question tho, if all the different brokers have basically the same prices, then that would mean (and I thought I read it somewhere too), that they share a price feed from a few select sources. So if many of these retail brokers share the same price feed, then wouldn’t that mean that price will basically tick up & down approx the same for all the different retail brokers? [B]Meaning the volume reflected isn’t just your specific brokers tick volume.[/B] If that’s the case, then it’s almost centralized in a sense, and would have more meaning.
Just a thought
It’s all too easy to think too much about the volumes and the validity and if they represent cashflow or just ticks, the thing is, it just works, I noticed the other day that some volume indicators are easier to read for this purpose than others, essentially they represent more and less volume at the same points.
There is a lot of argument of the validity and this that and the other volume - I just say look at it - the proof is in the pudding.
It does what it says on the tin!
I am just a noob so don’t take me very seriously. But, although many brokers share the same price feed not all the brokers use the feed the same way. What I mean is… some brokers tend to “smooth” the price a little bit so if the price from one broker goes 059, 060, 056 the price from the other broker can just stay 058… I think that can influence the volume bars as well. But again, that’s just my five cents. I don’t have very much experience with this
Contact your broker and ask them for their feed source.
There should be one, ONLY.
Also, you may ask what their policy is, in case there is a spike caused by the feed source provider who is providing the feed.
That is important if there is extreme volatility caused by unforseen circumstances like a global event and/or geopolitical influences. We were close to such an event last Wed/Thu with Iran telling the world about their war ships movement to Syria through the Suez. The market got caught short and flipped sentiment because of it.
[B]Meaning the volume reflected isn’t just your specific brokers tick volume.[/B]
Volume is important from a technical perspective when it is quantifiable.
What matters most is liquidity. Markets can have lots of volume but very little liquidity.
In a high volume market there may be a player who absorbs high volume and price does not move because the market is liquid.
In a low volume market price moves 100 pips because the market is not liquid.
Well with E/U and G/U we’re usually good to go there I guess. I’ve found volume a very useful addition when combined with picking out S&R zones on the Daily & 4H charts - for a relative noob such as myself it gives me that extra validation to understand what price action is doing. I guess there’s debate over tick volume but if it works for somebody in pracice they should have at it in my opinion.
It pays to remember the difference in characteristics.
For example speculative interest positions itself LONG ahead of a major news event in Cable. You see volume UNTIL shortly BEFORE news release. News doesn’t turn as speculated…Cable DROPS and you DO NOT SEE volume.
What is happening here ?
The opposite of the coin…for example Russia BUYS Cable because they need Pound to pay for a transaction in Pound. You see volume.
After transaction completion Cable consolidates and the next day Cable DROPS. This time you SEE volume.
What is happening here ?
The same two scenarios with Fiber and Fiber behaves the complete OPPOSITE.
This is very simplistic but I hope it illustrates my point. You can validate my scenarios next time Quarter end comes around.
I’ve found volume a very useful addition when combined with picking out S&R zones on the Daily & 4H charts - for a relative noob such as myself it gives me that extra validation to understand what price action is doing.
Good for you.
News news news news news… News were invented to scare ppl. Or give hope.
Volume is showing what pro money is doing.
So I don’t watch or read any news. I watch volume.
Smart money only use news to position themselves into the trade, they normally move against the news (herd). Some of so-called pro I’ve know, they just analyze every **** news from usa to Euro, from Asia to Arab, from north pole to south pole,… in order to explain the movement of price. I just fell sick…
Yes, exactly. “Good news” can start the markup move too. They don’t always go against moves. If they would, it would be too easy for everybody.
Trying to find a good broker with solid accurate volume data feed, I have tried GoMarkets, Spot Trader, IBFX, but they all show slightly different volume signals, the volume spikes tend to be the same, but the intermediate volume ranges can be quite different.
It would be nice if someone could recommend a broker in the UK as the pings to those US ones are spikey. ( Already tried Alpari)
Use IBFX and don’t worry about the details of the differences
I think what Coxsonne is saying is that volume doesn’t necessarily mean smart money is or isn’t active and that at certain times it pays to know what the order book might be behind the move and where other important orders might be positioned - especially around times such as quarter end, month end, etc. Though it probably ties in to your trading objectives i.e. if you’re looking to catch some larger moves this is something you need to be considering. If you’re after only shorter moves then perhaps not so much.
Oh. Got it.
Anybody read the whole Master the Markets book by Tom Williams? It has interesting stuff in it… It just all looks little bit odd cuz it could be just a huge comercial for their TradeGuider thing. I certainly don’t need an expansive charting software to tell me which candle has a big spread and low volume :)…
Is it genuine? Do all the principle explained in the book work? He is applying everything to stock market can I apply it to forex as well? Is it pretty much what are you guys doing in this thread anyways?
Sorry for asking stupid questions, I just don’t want to confuse my already confused brain with something that doesn’t even apply to forex market.