MFI requires price and volume data. Again, the latter is not available from brokers for spot/CFD trading, even if they pretend it is, as some do.
For some reason, this forum’s members seem somehow resistant to understanding this important point! I’m not trying to be rude to anyone and I intend no criticism of anyone at all, but people need to be aware that the only “volume” figure a “broker” might give you, or use in calculating an indicator such as MFI which requires volume inputs, is their own volume, simply because they have nothing else to give you as your “trades” are not in an actual market at all and no currencies are changing hands. Sorry if it’s somehow taboo to mention it (continually), but this is just the reality!
So when I mentioned MFI & DYOR, I guess you could have pointed out (added to my idea) that someone can use the MFI indicator as a model and utilize tick or futures volume instead? OMG!!! SO tired of forum members not knowing how to take a suggestion, expand upon it, be helpful to the OP, and then having to explain it to them!!! LOL
And although it totally sounds like I’m mocking you, I don’t mean to be mocking or insulting to you either. Like you and rudeness.
Amazing that someone who wants to educate the entire forum via sniping comments - not just this post - can’t answer the OP’s question. On the flipside, I’m glad you are active and give out honest thoughts.
I had just mentioned futures volumes, in my previous post!
My experience in this forum of mentioning things twice, close together, in the same thread, is that people criticize me for doing so, say that I’m “sniping” and some even accuse me of being other members if I expressly agree with what anyone else has said.
I really do find it terribly difficult to try to help people, here, though that was actually my sole purpose in posting, in this thread.
I answered it as well as I could, by correcting some misinformation. Again, apologies if that offended you, or anyone else.
I support and agree with the posts of both @TruncatedUsernam and @tommor , and I duly thanked both of them.
I have more than 20 years of professional trading experience and feel that I ought to be able, sometimes, to help some people here. (That was actually why I was invited to join the forum.) It’s bad enough that the forum is full of bots, spam and trolls, but half the time when you do manage to interact with real, presumably well-intentioned people, they just attack you and make completely mistaken and unwarranted accusations (not suggesting that you did that - I’m generalizing). It really is TERRIBLY difficult and only questionably worthwhile at all.
Don’t worry: no offense taken, but as I said to someone else, just above, yesterday, let’s not make the thread about you and me? @ria_rose is asking for help, here.
MAs for trend confirmation ,oscillators for entry spots ,higher TF’s overbuy/oversell for profit taking ,get a low P/L ratio entry ,that’s what everybody does ,is that means you are closer to consistenly profiting ?never .
Yes, futures are well regulated, so the volume is very accurate. However, what volume are you referring to? Are referring to the foreign currency futures volume (6A, 6B, 6C, etc)? I don’t think the volumes in the futures instruments even comes close to their counterpart in the Forex market. I think you would run into the same issue of how well does that volume truly reflect the market as a whole.
When it comes to forex recorded publicly available statistics tell us that Futures volume of Currencies is just a small slice of the pie. So I’m doubtful if using futures to represent the market as a whole is accurate enough given the volume of unrecorded transactions.
But the benefit of futures volume data comes into play when trading equity indexes, energy commodities, agriculture commodities and any other financial markets where a large slice of the pie is traded through the central exchange.
My personal focus is on WTI Crude Oil and as I grow my small trading account I will expand to include S&P 500. As these two have the best liquidity and behavior for a retail trader to learn to trade.