12/11/ · The true amount of volume cannot be known in the forex market because of how many different exchanges there are all over the world in which trading takes place on, when people realize this they tend to shy away from understanding volume and the information it reveals, which is unfortunate because knowing what the volume readings mean can aid you greatly in your trading and Estimated Reading Time: 6 mins 07/09/ · On the Forex market, the term volume refers to the number of “ticks,” which are price movements that appeared in time intervals. Volume indicators are those that strictly account for the volume. What does the volume indicator refer to strictly? 14/09/ · What does volume trading mean in forex? Volume trading in forex means something slightly different to securities volume. In FX trading, it’s the number of lots traded in a currency pair within a specified time period – put simply, it’s the amount of currency that changes hands from sellers to
How You Should Really Use Volume In The Forex Market
Tick volume is where 1 tick equals volume meaning in forex trade, volume meaning in forex, this means if you see a large volume spike in the market its telling you that a lot of traders either placed trades during the that time period or they closed trades. The true amount of volume meaning in forex cannot be known in the forex market because of how many different exchanges there are all over the world in which trading takes place on, volume meaning in forex, when people realize this they tend to shy away from understanding volume and the information it reveals, which is unfortunate because knowing what the volume readings mean can aid you greatly in your trading and understanding of the market.
For a bank or hedge fund to take some kind of action in the market whether it be place a trade or close a trade they need lots and lots of traders doing the opposite to what they want to do. For example if HSBC wanted to buy 3 million Volume meaning in forex they need lots of other traders to be selling Euros, the sell trades of the traders selling must at least total 3 million otherwise HSBC will not be able place their entire buy trade into the market.
The high volume means lots traders did something during the creation of this candle, knowing what they did and more importantly knowing what the institutions did during this time require us to understand how traders make decisions. In one article on this site I talk about reactive traderstraders who will make snap decisions about placing buy or sell traders without any kind of strategy or method so to speak.
It turns out that most of the traders trading forex fall into this category. Most of candles which have high volume readings are the same kind of candles these reactive traders will trade. When they see large candles like this they will all place buy trades thinking that the market is going to continue higher. A candle like this however will make them place sell trades because they think the market is going to keep moving lower, volume meaning in forex.
If you watch the markets when important volume meaning in forex get released then you might have noticed there tends to be very high volume on the candlestick the news get released on. This is strange, as its commonly accepted that professional traders volume meaning in forex banks and hedge funds do not trade during news times. The chaotic nature of the way price moves during these times can easily take them by surprise and make them lose money, this is why they will wait until after the news has been released to start entering their trading positions, volume meaning in forex.
At the beginning, when the news first gets released and the market is trying to establish a direction, most of the volume will come from the traders who had trades placed in the opposite direction in the market before the news came out. Around minutes after the news has been released the market will have established a clear direction, in most cases by this point the market will be either be moving up or down quite strongly with large candles, this will entice the reactive traders to place trades in the direction they see the market moving.
Also if you look at the volume, you can see after the big spike on the large bearish candle it begins to steadily decrease, all of this volume is coming from the reactive traders and to some extent the trend traders who are selling just because they see the market going down.
Because at the end of day these are the people who control the market, and knowing what their up to can provide valuable insight as to which way the market may go in the future. Save my name, email, and website in this browser for the next time I comment. Many traders dismiss volume as not being reliable and to some extent this belief is true. I know this by looking at the volume. Knowing this information can help us in identifying what bank traders are currently doing.
Volume During News Events If you watch the markets when important news get released then you might have noticed there tends to be very high volume on the candlestick the news get released on. Nobody knows whats going to happen! Basically it comes from two sources: Source One At the beginning, when the news first gets released and the market is trying to establish a direction, most of the volume will come from the traders who had trades placed in the opposite direction in the market before the news came out.
Source Two The second bout of volume comes from our good friend the reactive trader. Comments Brilliant. amazing content Thank you very much. Leave a Reply Cancel reply Your email address will not be published. Comment Name Email Save my name, email, and website in this browser for the next time I comment.
How to Day Trade Using Volume - 28
, time: 3:52What is Volume in Forex Trading? » Trading Heroes
12/11/ · The true amount of volume cannot be known in the forex market because of how many different exchanges there are all over the world in which trading takes place on, when people realize this they tend to shy away from understanding volume and the information it reveals, which is unfortunate because knowing what the volume readings mean can aid you greatly in your trading and Estimated Reading Time: 6 mins 07/09/ · On the Forex market, the term volume refers to the number of “ticks,” which are price movements that appeared in time intervals. Volume indicators are those that strictly account for the volume. What does the volume indicator refer to strictly? 14/09/ · What does volume trading mean in forex? Volume trading in forex means something slightly different to securities volume. In FX trading, it’s the number of lots traded in a currency pair within a specified time period – put simply, it’s the amount of currency that changes hands from sellers to
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