I’m in the middle of making a trading plan and a new workspace setup on my trading platform.
For that I need to get volume info on multiple timeframes from 5 min. to daily and preferably also weekly. However I haven’t succeeded in getting any decent volume info on timeframes higher than 60 min.
I suspect it is because the volume in forex trading in based on ticks. Can anyone confirm this.
If that is true, doesn’t that make forex quite unsuitable for Volume Spread Analysis (VSA) trading? :15:
Yes volume indicators for forex are based on ticks, which is enough of a relative correlation between normal volume. I use MBT and I feel their volume is effective for trading.
Thank you all!
I will immediately have a look at all the good stuff you recommended. I have already read multiple papers on VSA including “Master the Markets” which is the bible of VSA.
Unfortunately I’m using Tradestation so I won’t be able to use the indys you posted.
I have one question though, is it possible for any of you to get tick volume info on your daily charts? -just so I know if it is my platform that have a problem or if its just because of the nature of tick volume.
I am currently checking vsa as well and find the M15 best suited. Not too many signals like M5 and not as few as higher tf’s. Plus many signals seem to make sense.
Vsa is for sure not the holy grail, as nothing is, but could be one nice tool to complete my toolbox.
Yes, but this week has been awful, it’s just one of those weeks, and I wasn’t quite patient enough to be honest.
It has been bugging me in the back of my mind to code something up for this strategy, something along the lines of setting my levels manually and look for the TC pattern at those levels and leave it to it for the day/night too maybe.
On FXCM’s MarketScope charts, tick volume is available on every time-frame from 1-minute to 1-month. (Tick volume is not available on tick charts, because each tick represents a volume of 1 tick.)
I don’t think FXCM is unique in this aspect of their charts, but I don’t have info on other brokers.
Here’s a screen-shot of an FXCM daily chart, with tick volume shown. I have added the green vertical lines to separate the chart into weeks. Note that FXCM opens a new “day” at 5pm New York time each day. So each candle (and each bar on the tick volume histogram) represent a period of 5pm-5pm. The FXCM platform opens for the week at 5pm (New York time) on Sunday, and closes at 5pm on Friday. Thus each week consists of 5 days of 24 hours each.
I think tick volume is meaningless for VSA or at least is redundant information if you use Japanese Candlesticks in your charts.
Tick volume will only tell me that a session was volatile or not… but that I can see it with candlesticks… for true VSA you should need the real transaction volume… something that is not available for retailers like us…
Well, not always… that is the thing…tick volume is not reliable 100%… it might be a correlation of some sort with true volume.
if you go down to in your chart and look for candles in a specific period…is easy to know how the price moved…
usually with tick volume, the candles (small or big) with long wicks compare to the body, can tell us there was a volatile session(high tick volume) but that data does not say nothing about true volume (real money)
Anyway, I am not saying tick volume is totally useless but is not as reliable as in Tom Williams’ “Master the Markets”
Just relying on candle structure is just as correlational as relying on volume data from that particular broker. Everyone’s price/volume feed are specific and relative to their own platform and feed. I have mbt due to ECN, hoping it will make for more of a higher correlation.
As I don’t use VSA, can someone clarify: Volume data will differ depending on broker? So if you have a VSA strategy that works with one broker, and apply to another broker, there is a chance it may not work (or it could work better)…
but is not as reliable as in Tom Williams’ “Master the Markets”