Good thing you mentioned forexlive i think they show their own bids and offers, sometimes i do get the same thing at they do but most times when i look at my numbers for options cut NY are exactly the same since we both have an access to the same type of information but i get different volume than them since i have an access to other pools as well.
What i do have is a feed to couple of hedge funds and Liquidity providers.Since i have a prime brokerage account have the privilege of accessing their book,which took me about 2 years after building relationship with them to get it. I Don’t really think i can trade based on futures volume in FX.
What i can see in these feeds are the intentions are LPs and banks. For example Reuters own about 80% of eurusd volume, their book is huge, but on the other hand if you want to trade GBP/JPY they don’t have enough depth in their book so you can’t make trading decision based on that type of information.
I have never used market profile , but i read about it many times.to be honest as soon as you try to analyse the price and punch it into a formulat to be able to calculate and predict the future price you get yourself into the same thing, technical trader or trading, which there is nothing wrong with that, I think it s great if anyone with any tools can make money in this market on a consistent basis. I dont care what it is as long as it makes money.but as i said before for myself personally trading with charts alone is like driving the car forward just using rear view mirror.
What I’m able to see from the feeds are simply Limit orders,Market orders when they get executed.and they enter into another book called C book.from C book acumulation of orders in volume shows what they are thinking in short term.
If you look at the order book which some brokers such as dukascopy have, all you see is just bunch of limit orders provided by LPs, those information is valuable too but you see most times they try to trick one another in the book by placing buy and sell Limit orders, trying to make the other believe something is about to happen and market either goes up or down.
they key that i use is a mixture of looking at the book(limit orders) see where imbalance is in the market then look at the C book and see how much volume is actually getting executed in that direction.Simple as that. I can see the accumulation of bids and offers, for example I give out my own bids and offers ,so i say BIds EUR/USD 1.1217 area this means i saw accumulation of buy orders on the books,usually if the accumulation of orders goes above 1 yard we see a good 8 to 10 pip move within the next couple of minutes.
in forexlive they don’t give you bids and offers with their volume.I just looked at the site.
I can tell you which liquidity provider is buying or selling,It’s hard to by just looking at the book to figure out the fake order or Icbergs, but by looking at the execution part you can figure out who is trying to cheat you and what they real intentions are.
again it doesn’t work 100% of times but i found more success with this rather than technical analysis.