Measuring Volume in Forex, I have an idea but cannot program

First, please note that I know that measuring volume in Forex is nearly impossible since there is no central system to count up all transactions.

So, they use volatility indicator such as bollinger bands and ATR. But I disagree with those indicators to gauge actions taken by the market makers since those calculate the difference of close and open prices within the specified period. Or accepting broker’s contracts as volume is too little information for the entire forex world, I believe.

But how about measuring how many pips has been fluctuated within the candle or stick? If the market maker buys or sells, the action should affect the price movement even a piplet. So the idea is that measuring volume (amount of transaction) equals to the amount of activities taken; therefore, measuring movement of price within the candle or stick regardless of up or down is [B]measuring volume[/B], right?

What do you think about this? Do you think this is correct idea to measure forex volume? Is anyone able to create such indicator? Or, is that already available? If so, could you post that here?

Thank you

Look in to Market Profile indicators. MP will measure the time which price has been at a certain level and give you some insight to where there is an abundance (and lack) of liquidity. Low liquidity, less volume to move price. Abundace, much more volume. Then there are times of the session/day that are known for these instances… Good luck on your journey :slight_smile:

Hi Sasa2340,

I think you’re probably making reference to tick volume, which is the number of ticks within a candle. An indicator called Volume is already available in many platforms and it measures ticks.

Here’s a link with a spreadsheet that Clint created, which shows a very close relationship between Volume, and tick volume,

And there’s already a thread dedicated to Volume Spread Analysis which can be helpful too.

Hope that helps.

Thank you for giving me great resources for tick volume!

Actually I have VSA-1,500 pips on my bookmark :D, but some still argue the volume in MT4 is not “real” volume… But now I see tick-volume according to Clint is reliable. I really appreciate if you have and post his “typical tick-volume” (or is it same with one in MT4?). Thank you

Thank you EmeralEyes,

MP can be great indicator to see the price level basis. Sorry, I forgot to tell this here that I was trying to keep up with volume in timely manner so that I could see “when” a reliable reversal by smart money can occur.

Thank you for your help! Is the “typical tick-volume” that Clint is mentioning in your link same with the one in MT4 Volume indicator? If so, I’ll continue to use the volume in MT4. I thought it is different because some say volume in MT4 is useless and it is not real “volume.”

very interesting. I have been interested in using volume indicators but have always been put off because of peoples saying its OTC and not a central exchange. How much validity should i put into a typical tick volume indicator?

Hi Sasa,

I don’t use Mt4, but as far as I know the standard volume indicator included in Mt4 works fine for this purpose. And no, it’s not real volume, it’s tick volume, and a lot of people will tell you that it doesn’t work, but you have to watch it for yourself.

Take a look a the 1500 pips a month thread and get your own conclusions. You’re not going to be disappointed. :slight_smile:

Hi MeiHua, take a look at the following link to get the answer you’re looking for.

All the best.

Thank you for giving me good threads for the tick volume. As I found useful, I’ll just attack two volume indicators for the future visitors. One is volume with MA’s and the other is the MA of volume with direction&strength of the candle.

Clint got there first with his analysis, but more evidence to that effect has turned up - Fx Trader Proxy Volume Article

I added the indicator in my metatrader indicator folder but the indicator does not appear in metatrader.