Originally Posted by notouch »

Volume is not available in the spot market so where are you getting those numbers from? The thing that is really ridiculous is your belief that "Professional Money" is behind every little 10 pip move in EUR/USD. Who exactly are these mysterious "Professional Money" people manipulating every little move in this market? In spot forex the majority of volume could better be described as "Real Money" i.e. commercial interests that actually need to exchange money for business reasons. Only a tiny percentage is speculative. At that time of day there is no speculative "Professional Money" involved in EUR/USD. The volume is mostly created by banks calmly filling orders by Japanese exporters. The EUR/USD move would have been created by investment banks arbing the EUR/JPY, USD/JPY cross rates.

Don't get your knickers in a knot, notouch. It's just tick volume from the member banks represented in Spot Forex, that's all.

http://www.tradeguider.com/fx_factsheet.htm

Whether "institutional money = professional money" is another debate altogether.

[notouch]

:p I don't wear knickers cooter, do you?

I'm aware that bad approximations of fx volume are available but that doesn't answer any of my questions which I'll leave to PivotProfiler who I'm sure can answer for himself.

[Anonymous]

Originally Posted by mroalan »

1.that squat (hammer to me) does it need to inside the body of the preceding candle and does the colour matter?

No. There are may way for it to appear. Ideally, you would like for it to be a bar that makes a higher high but not a lower low. Some call this a buying bar. The opposite would be a selling bar. There are some posts on this. If you need more just ask.

Originally Posted by mroalan »

2.does the colour of the volume bars matter?

Blue bars mean higher volume than previous bar. Red means less than or equal to previous volume bar.

Originally Posted by mroalan »

3on the second chart,the candle following the WRB (spinning top)would give the game away,not sure if it was you who said its "change of ownership bar".
5 bit confused about the no demand bar as its not got much of a tail,would not the upthrust bar be more of "no demand"?
thats enough for now,you,ll be pleased to learn i,m getting there,well i thought so!say nothing.

Can't make out questions 3 or 4. As for 5, UpThrusts come in two forms: 1. higher volume "upthrusts" and 2. Lower volume "No Demand".

The key is that price trades up and then closes on or near the low of the candle. Also No Demand does not need a tail at all. Note that the range is less than the previous bar. The volume is less than the 2 previous volume bars and while the close is equal, a higher high was made. Also note that the next bar was down and did not make a higher high.

The base definition for No Demand is a bar that has a narrower range than the previous bar, closes equal to up and has volume less than the previous 2 bars.

[Anonymous]

Primary methods:

1. Volume Spread Analysis

2. WRB & Long Shadow Analysis


We trade right by first looking left.

First we look at the higher time frame. Markets are fractal and the higher frame dominates the lower one.

The 15 min chart . As previously stated, the start of the day should be at 0200 New York time according to Mark Fisher. This is when London trading begins.

Notice that we see a squat. A narrow range candle (narrower than previous candle) with volume greater than the previous bar. Supply is entering on this candle. At 0400 hrs we get a No Demand sign. At this point we have seen a squat and a dark inverted hammer with a Long Shadow. Supply is entering and volume is less on up candles.

At 0430 we see another No Demand sign. It is a good guess that there are no buyers in the market. If Professional money is not buying (supporting) then the path of least resistance is down.

Jump over to the 5 min.

The fist significant candle is the Effort to Fall candle just after the No Demand candle. Note that we see a test candle after this WRB, which is also an effort to fall candle. While the volume on the test is low, we have not seen strength on the 15. No reason to be looking to go long.

The next candle is up on Ultra High Volume. Markets do not like up bars on high to ultra high volume. Indeed, supply entered the market on this bar. But we now have our WRB that creates a Support/Resistance zone. This is where we would like to see an entry signal. Preferably a low volume signal where there was once high volume. Or a high volume (squat) or UpThrust.

AT 0435 we see a narrow range bar that closes up on volume less than the previous two bars. This is No Demand. We have seen Weakness on the 15 min chart and now we are getting No Demand on the 5 min. Even though there is no "vsa indicator" we are reading the candles and see our entry.

We note that this No Demand is both within the body of the large white WRB and within the body of the Effort to Fall candle. If the Smart money was trying to push prices down around this area (range), then it is a good sign (of weakness) to see little volume on a candle in the opposite direction within that range.

Hope this helps.

[mroalan]

thanks for that Pivot,i realise about the colours on the vol.bars,what i meant was do you take any notice of buying/selling in the bars or is it just volume your concerned with? have you ever used equivolume or candle volume?

[dod]

I have a question concerning spot forex volume. With most forex data, volume isn't available. However, I believe ESignal supply Tradeguider with tick volume data, with they claim is adequate. I follow forex with a broker called FXDD. They supply volume data, but haven't responded to my emails as to what this data is made up of. On another forum, someone suggested it was tick data, but it would only be representative of FXDD clients rather than the industry as a whole.

Can anyone clarify whether the proportion of 'smart money' to 'retail money' that would be expected to prevail with 'full' volume data from the industy as a whole is likely to be approximately the same as tick volume from one broker? Or would it be wholly unrepresentative?

The reason I ask is because I'm currently trading forex (daily and weekly time frame) using price action - one or two bar patterns - with a couple of indicators to clarify likely direction and it struck me that adding VSA to the mix might help me a lot and even wean me off the indicators altogether; but I don't want to spend my time trying to 'see' relationships between volume and spread if the volume data is suspect!


Nick

From what I've heard the "volume" for Forex is indicative of tick data from member bank transactions in the ESignal feed.

More info: http://www.tradeguider.com/fx_factsheet.htm

[notouch]

Tick volume can increase even when no trades are going through. E.g. during the Japanese session the Yen may strengthen against the USD but weaken against the EUR so the banks will increase the bid/offer on EUR/USD to prevent arbitrage. So it looks like there's been an increase in volume even though there hasn't - it's just the banks' computers automatically doing their thing. It certainly isn't evidence of "Professional Money" intervening.