[blott]

Originally Posted by sharehunter »

Dear Friends!

My main method is VSA so when I join to currency and commondities market , I feel so difficult. Now I am study about to tick volume to use this like a real volume in stock market. But I am still don’t understand about Tick Volume, please kindly help me about some part of tick volume as bellow:

- What is tick volume? How to calculate tick volume and please give me an example
- Please introduce to me some brokers have MT4 platform and providing good tick volume

Hi Sharehunter,
You can get an understanding of why volume is so important, whether in stocks, futures or Forex, because it its release is either delayed (except to the Big Boys/Girls) or costs an arm and a leg to buy! In Forex, MT4 shows tick volume, which while it does not tell you just how much was traded, it tells you the RELATIVE amount of traded on that bar compared to volumes on all other bars. And, as 90% of the volume is due to Smart Money, one should pay attention to the volume!

If high volume on an upward move does not result in further rises, then it shows that a lot of that volume was selling by Smart Money too, putting a cap on the market and probably indicating a reversal, or at least a pullback to test a previous level before continuing up. Now you know why Smart Money does not want you to know what they are doing and why real volume is an expensive secret :-)


Regards,


Mike

[sharehunter]

Originally Posted by blott »

Hi Sharehunter,
You can get an understanding of why volume is so important, whether in stocks, futures or Forex, because it its release is either delayed (except to the Big Boys/Girls) or costs an arm and a leg to buy! In Forex, MT4 shows tick volume, which while it does not tell you just how much was traded, it tells you the RELATIVE amount of traded on that bar compared to volumes on all other bars. And, as 90% of the volume is due to Smart Money, one should pay attention to the volume!

If high volume on an upward move does not result in further rises, then it shows that a lot of that volume was selling by Smart Money too, putting a cap on the market and probably indicating a reversal, or at least a pullback to test a previous level before continuing up. Now you know why Smart Money does not want you to know what they are doing and why real volume is an expensive secret :-)


Regards,


Mike

Hi Blott!

In stock market, i do a research on wyckoff method and using it as my main method now. as i know Tom Wiliam said that we can use esignal tick volume with the meaning as real volume in stock market so i would like to know what is tick volume and why is tick volume in forex market same meaning with real volume in stock market. really, until now, i still dont understand clearly

[zdo]

re "i still dont understand clearly "

If you understand correlation then you understand... hth

[cable.trader]

Tick volume is NOT a proxy to volume in FX markets. Sorry. If you discover something profitable in tick volume,
good for you, but it is not because you can somehow correlate tick activity to volume.

When price ticks up or down, it DOES not necessarily mean a transaction was consumed. It might be a change in
bid/ask, certainly change reflected on your chart data feed.

Also, the tick activity is a product of who is providing you with chart data feed. Each vendor will report different tick
volume depending where a vendor is sourcing its data. Sources send indicative prices, which will be reflected
in tick activity.

I think the the FX market structure is just a bit different, decentralized, but with EBS/Reuters driving
dealable prices and banks providing data feeds and sending indicative prices.

Good Luck.
Cable.Trader.

[blott]

Hi Cable Traders,
While I can't say I'm an expert on the finer points of what tick volume is, I do believe the clue is in the latter part of the name

If you care to take a look at the attached eurousd M1 chart, you will see clearly the correlation between volume and Smart Money activity (I am reliably informed that 95% of volume is produced by Smart Money activity, the rest by The Herd).
You will see that a relatively high volume spike, or a relatively low volume bar (i.e. no interest by SM to go in that direction), usually preceedes a change in price.

I have drawn in some RSI (4) divergence lines to help with decisions.

For other non-believers in the importance of volume to future price direction, may I suggest either buying your volume data from a commercial source (expensive; one wonders why...) or finding Tom Williams' YouTube videos (cheaper) to find out what is really happening in the markets.

Trading with volume is not a case of belief, like Religion; this is fact based on what one sees in front of one's eyes.

Kind regards,


blott