Another in my series of ‘useful articles’ (at least I hope they’re sometimes useful to others):
Regards,
Dale.
The only problem with volume in Forex is, which volume do you use?
All the brokers are different, but similar, which again vindicates my principles of keep it simple and don’t go into too much detail, since if you go to too much detail Metatrader on one broker might give you one thing, while on another it may be different, so by taking a step back and look at your charts with a more general view you can come to the same conclusion.
But it still niggles me if only I had the total Forex volume on my chart I would really have the big picture, the problem is that you need the volumes of the broker that has the majority of traders that know what they’re doing to make the information viable.
I’ve tried a few mt4’s and picked FXpro since it seems they are the ones with the highest volumes, but it don’t really matter because when you look at it all in context it’s Ok.
But…
Well: there are currency futures you know!!! LOL!!! Regulated. Exchange traded. REAL voume data. That type of thing. Not to mention open interest data. That type of thing.
Regards,
Dale.
Edit:
To wit:
Getting Started in Foreign Exchange Futures
Introduction To E-Micro Forex Futures
Aside from anything else: it solves the ‘timezone’ issues with different brokers / charts which I believe to be a VERY big issue (there’s a thread running right now on this very subject but I’ve not bothered to interfere because I’ve been ‘on about this’ for ages now).
Personally I like the fact that forex is so unregulated. I think that promotes a better free market than when regulators try to control things. Besides, since forex is a global marketplace, it seems impossible that we could ever have a unified global regulation. That means any regulation constraints we have in our local countries could mean a disadvantage when trading against the non-regulated folks.
Whether or not the timeframe “issue” is really an issue or not is probably in the eye of the beholder: some might say it’s a real problem. But then others might look at it as an opportunity. I personally love the diversity, I think it means there is always some action going on somewhere on the planet…
Getting back on track… I like the idea of using volume. I’m currently studying the VSA threads to see what I can learn…