Clearly you didn't read my pg 14. Nonetheless I will still explain.
Money directly moves price. Correct? Let's use EU as an example. As more money is taken out of the EU pair, ie Euro's are traded for US dollars... The exchange rate itself goes up. Why is that? Supply and demand you could say. The less Euro's in the market, the more valuable Euro's become in respect to dollars (assuming their is a cap to how many Euro's are actually inside the market, now their are less Euro's to Exchange for dollars therefore it costs more dollars to buy euros...). Makes sense so far yes? Now what causes the Euro to go down in price? Same thing visa verse... More people come to the market with Euro's and exchange them for dollars. Therefore the market now has an excess of Euro's and dollars are deemed more valuable to future investors so to speak.
Now keep all that in mind while I continue. If you do not believe the money put in and taken out of the market directly moves price from point A to point B, then you reading on is a waste of your time. Now what does this have to do with volume... Volume = the actual amount of money invested/withdrawn from the market during the given time frame it is being quoted for. There is nothing wrong with the volume the broker gives us. Since so much money is traded in the foreign exchange per second, its nearly impossible for the broker to give you the exact amount of money (quoted to us in integer form) per the time frame requested. So for the most part, brokers round the integer values given to us. Rounding the money isn't even that big a deal... Brokers do not directionalize the volume they give us. Price goes up and down yes? Money IS directional, it goes in AND out of the market via the actual exchange itself. Since they do not directionalize the volume when they quote it, its like absolute valuing the negative money (money coming out) and adding it to the positive money (money going in) for the Total volume as i call it, the volume they quote and you see on your screen. I'm not interested in the volume the broker gives me. I wanted to know exactly how much volume it took to move price from point A to point B, not the excess volume as well, I wanted to know the EXACT volume. Through much studying and "scientific" testing i suppose you could say, I figured out exactly how to calculate the real volume as I call it. I determined volume is price dependent, and that movement was the direct result of the "real" or as i call it "net" volume. I could go into much more detail on exactly how i found it etc, but I should probably just save that for my book...
The thesis for my masters degree if I ever decided to get one: inverse of price multiplied by the movement of price (in pips) equals net volume. So for example, lets assume you wanted to know the volume for a candle, but only from open to close... the equation looks like this. V = (1/Opening Price)[(Close-Open)10000].
Almost forgot. I just showed you how to calculate the volume. NOT the money. the volume is quoted in integer form, not monetary form. I am under the impression one Unit/integer of volume being quoted is actually represents 1 Lot in the FX market that has been exchanged. 1 Lot = $100,000 therefore I multiply the Volume by 100k to determine the money.
Are you satisfied? Now do you want to completely disregard my concept which goes way more into depth than that simple equation i just explained to you? Maybe you should go back and actually read what I am doing before you disregard me as some stupid kid. Thanks.