In addition to two other indicators, I’m experimenting with momentum (I’ve found that a 7 day period on momentum indicator is helpful for swing trades, specifically frankfurt/ny opening period, but am playing with parameters and open to suggestions).
Is there an indicator that combines volume and momentum?
Yes, but just stick to volumes - as I keep saying, keep it simple, but really understand how to use volume.
different brokers display different volumes though.
Any decent broker worth their salt will be showing useful volume numbers.
Hello,
This is off the topic I know but I’d just like to ‘throw the cat among the pigeons’ as it were i.e. have a debate on this issue.
To begin with: ‘fxvoilaaa’ is quite correct. The (forex) volume that you see is simply the volume being traded at that particular broler unlike the ‘real’ volume that you would get if trading on exchange instruments (don’t worry I’m not going to start my forex vs. equities ‘thing’ again here)!!! LOL!!!
But here’s the (my) conundrum: if we assume that most traders are on the wrong side of the trade statistically speaking then surely one should FADE the (forex) volume move??? As matter of fact even with equities: John F. Carter in his book has an interesting ‘system’ i.e. he sets up a chart that generates a bar for every 233 ticks (as opposed to our usual charts that are time based). He then watches for the buying or selling to start ‘ticking up’ ‘frantically’ and as soon as the tick volume starts to ‘fall over’ he fades the move the theory being that most of the (losing) traders will already have ‘jumped in’ on the ‘frenzy’ and as soon as the ticks start ‘falling off’ it means that there are no more participants so the stock must then logically move in the opposite direction). It’s an intersting concept although I’ve never tried it (mainly because my charting software does not allow a person to ‘create’ bars based on a certain number of ticks).
Regards,
Dale.
All you find is that you’ll have more ticks around the 10s, more on the 50s and then more on 100s
Been there done that 
how about worth their sugar. i prefer sweetness.
It just depends what’s cooking
why did he use 233 ticks ?
It’s not broker Volume, but the broker’s price tick activity to be precise. AKA tick Volume. That fits right in with your second paragragh, which is dead on…that’s smart money trading. Don’t try to pick a winner, just bet against the losers. 
Thats easy to say, how about explaining how you go about doing that ?
Are you saying if you think the price will rise you should, assume the majority also thinks that way and as you believe the majority are losers you should then go against your own judgment and go short ?
But then what if you were wrong in the first place ?
I guess what I’m trying to ask you is how do you know what the losers are going to do ?
You haven’t seen my thread? The last post I made is an example of traders buying in emo panic. This to me is weakness. The text book approach is then to wait for a low volume up move to confirm that there are no more buyers left, that would be entry for short.
Hello,
why did he use 233 ticks ?
Good question (and I had to refer to the book to find the answer i.e. it’s been a long time since I read his book)!!! LOL!!!
[I]“Why do I use a 233-tick chart versus say a 235-tick chart or a 287-tick chart? There is a simple explanation for this-I like to use tick charts that are lined up with Fibonacci numbers.” [/I]- from ‘Mastering The Trade’ by John F. Carter.
[B]And ACTUALLY I’m wrong in my description of this system. My apologies. After having to refer to the book this morning for the above quote he is NOT fading the ticks!!! I’m terrible sorry about that i.e. I was thinking about one of his other ‘tick fade’ systems!!![/B]
The system to which I was referring with the 233-tick charts simply works as follows: upon three higher closes you would go long at market immediately on the close of the third bar and stay in the market until you got three lower closes in which case you’d simply stop and reverse. Also note that he only uses the tick charts for trading the S&P and the Dow. He also does use this same system on normal timebased charts like ours. He applies a filter of sorts to the trades i.e. in order to avoid getting ‘shaken out’ during period of consolidation he notes that the three higher or lower closes should be outside of a consolidation phase (and I can only assume that this would mean the the closes have to be outside of a condolidation range (sorry but I never did quite understand what he was trying to say here in his description of the system).
The OTHER system that uses ticks: he waits for +1000 or -1000 tick readings i.e. he’s counting ticks as opposed to looking at the number of ticks on a chart for a given period as I previously erroneously noted. High tick readings apparantely represent the ‘frenzy’ to which I was referrring and he will fade those moves (from what I gather he’s fading tick volume). Sorry for the confusion.
Once again: my apologies for the HUGE mistake i.e. I have read so many books and looked at so many trading systems that sometimes ‘the mind plays tricks’!!!
Regards,
Dale.
ahhh yes i should have known that was a fib number I used to use a 233 MA in one of my strategies. Im thinking how to write an mt4 indicator to display something every 233 ticks just to see what that reveals about the PA
Hello,
That should be interesting although I don’t know how one would go about it given that with MT4 (so far as I know anyway) there are no tick charts other than those small tick charts that you can select to watch per pair. On the other hand: that means that the data is actually there not??? I know in the ‘history’ folder there is always a file called ‘ticks.raw’ but this file is always too small for it to be holding the tick data for an extended period of time (although as I said: I’m no MT4 expert)!!! LOL!!!
The logic behing all of this is (I guess) that a chart showing a certain number of ticks is more representative of price action than our usual timebased charts. One other ‘tool’ that he uses (which can apparantely be useful for the same type of purpose if you can understand the ‘lingo’) is to use the pit noise (there are one or two feeds that I know of but you have to subscribe to them). Apparantely this is useful but of course I don’t think it would / could apply to forex e.g. you can get a streaming feed from the S&P pit etc.
Anyway (and come to think of it): I’ve gone WAY off topic here again!!! LOL!!! That said: I’ve been thinking about the thread starter’s question. What about simply creating momentum indicator that’s multiplied by volume??? Just a thought.
Regards,
Dale.
I promise you it won’t reveal a thing, it’ll be a total waste of time, at first glance you will think how useful it is and then look into it more and more, wasting your time, I’ll be happy to be proved wrong, but if not remember for me to say to you - told you so
I hear ya PPP and I’m sure your right but you know I’m semi addicted to playing around with indicator coding and I have an idea for how this could work, it wouldnt be a tick bar chart I dont believe thats possible on mt4 but what I could do is a simple 233 ticks frequency indicator where it would place an object every 233 ticks, in a simalar fashion to the PSAR so the closer together they are the more often the 233 ticks occured, In fact I could make an external variable so the user could input any amount of ticks so it wouldnt have to be locked into 233 ticks.
Well in mt4 the tick quantity is in the volume so it is easy to access what do you think about the idea for a PSAR style 233 ticks frequency indicator ?
That does sound fun…I want it!
He don’t need any encouragement.
SDC -
I wish I had my Tickchart indicator I wrote a while back, then it could save you the bother, all it proved was that there is a lot of ticks on your round numbers, and if you have a market every 233 ticks, it won’t mean £$%£ all.
But don’t let me hold you back.
In fact if I remember right, I just used an existing indicator that is a line output, and then it was a piece of cake, all you had to do was use a long array to store the tick values as far back as you want/can, then plot them from 0 back like most indicators, run the array as a FIFO - there you go, it won’t take long now :rolleyes: