Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Was looking at the directional real volume indicator on FXCM trading platform. Does anyone have any ideas where this volume number is coming from? Also, since there is not a central exchange for spot forex, does this volume number really provide any value?
Can you help answer these questions from other members on NexusFi?
I have no idea where FXCM gets its information from, but there certainly seems to be some evidence that on hourly and longer timeframes, there's a statistically significant correlation between tick volume and actual volumes transacted. Perhaps not surprisingly? Whether and the extent to which that has "value" is another matter, and more subjective.
Directional Real Volume is one of five free Real Volume indicators available for the FXCM Trading Station platform. These indicators display real trade volume and number of transactions from FXCM’s clients around the world, giving you the advantage of a deeper look into the market.
The Directional Real Volume indicator displays individually long, short, net and total values of FXCM's trading volume as opposed to total value only. For those looking for more insight into market dynamics, this indicator breaks down the complexity. It works on multiple timeframes: m1, m5, m15, m30, H1, H2, H3, H4, H6, H8, D1, and W1. You can use these indicators with 14 currency pairs: EUR/USD, USD/JPY, GBP/USD, EUR/JPY, AUD/USD, GBP/JPY, USD/CAD, AUD/JPY, USD/CHF, EUR/CHF, NZD/USD, EUR/AUD, EUR/GBP and EUR/CAD.
If you have questions about our services at FXCM please send me a Private Message.
As you can see from a 1-minute chart below of EUR/USD during an ECB announcement, there's definitely a correlation between Real Volume (top), Tick Volume (middle) and Transactions Volume (bottom).
However, there are notable differences when there is a large spike in real trading volume. This reveals a limitation with tick volume in that it has no way of showing when a large amount of volume trades at a single price, since that would only be counted as a single tick. Real Volume and Transactions indicators can thus provide new perspectives on what traders are doing during major news events, especially since they work even on 1-minute charts.
To summarize:
The Real Volume indicator shows you how many currency units traded
The Transactions indicator shows you how many client orders executed
The Tick Volume indicator shows you how many times the price updated
If you have questions about our services at FXCM please send me a Private Message.
