Volume indicators are used to determine investors' interest in the market. High volume, especially near important market levels, suggests a possible start of a new trend, while low volume suggests traders uncertainty and/or no interest in a particular market.
In Forex Volume data represents total number of quotes for the specified time period.
The methodology of using Volume indicators
When Volume increases it indicates a growing interest in the market, therefore it may strengthen a main trend or start a new trend;
When Volume decreases it indicates that interest in the market is decreasing, which calls for either a trend reversal or temporary market consolidation;
Sudden and vigorous increase in Volume may signal for an upcoming reversal, while gradual decreasing in Volume may still be supported by rapid price moves.
Forex Volume Indicators:
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Acceleration Bands Market Facilitation Index Volume Accumulation Distribution Chaikin Money Flow (CMF) Rate of Change (ROC) Volume Oscillator (PVO) Demand Index On Balance Volume (OBV) Money Flow Index (MFI) |
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how can the actual volume be calculated if there is not a central location, how are they are to keep track of orders brought and sold
Volume indeed cannot be calculated based on the number of contracts traded and the size of those contracts since Forex market is decentralized by its nature. Volume is calculated based on price ticks. 1 tick is 1 volume. As price changes back and forth, volume adds up. High volume will have lots of such simple tick shifts, while low volume - very little.
I've been trading in stocks for the past 7 years using only price, volume and OBV and it has worked very well for me. My question is,will this type of analysis also work in Forex?
Kamil
http://sharesmadeeasy.com
Yes, it will. Forex uses the same technical approach for analysing volume.
ok
There is an important volume index that doesn t appear in the list: the market facilitation index. I use it for the last year at to me, it is the best volume indicator in the market, since it takes into account not only the pips fluctation accumulation but also the intensity of the variation of each movement of each movement of the cursor price. Combined with a couple other indicators to measure the trend and the momentum and then you have a very stable trading system.
Thank you, the indicator has been added.
Market Facilitation Index
Hello,
I've looked everywhere for the Chaikin Money Flow Indicator and can't find anything!
First time I've failed to find what I was looking for.
Can you help please?
Thank
Stephen
Sure,
Chaikin Money Flow for MT4: CMF_v1.mq4
Thanks very much for cmf_v1.mq4
Do you have the indicators for Renko and Point & Figure charts?
What is the best indicator for detecting pivot points?
the best indicator to detecting pivot point is / was your brains... hahaha
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