Do you need volumes in Forex? - page 2

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Thank you all for your replies. The topic has gone a little in the wrong direction. The glass of prices is a separate issue (and I understood that this is where the conversation was headed).

I would like to express my point of view. From my viewpoint, the tick chart is a movement of "a single volume". That is why at each new tick the volume changes exactly by 1. It does not mean that at this moment there was a deal with the volume 1. It means that at this moment a deal was made which led to changes of the price (ratio of these currency pairs). In other words, the volume histogram indicator is just a measure of the rate of change in the market on a given candlestick. The price change only means that someone somewhere made a deal with someone else. They may not have made it at all at the price that is currently on the exchange at that moment in time. I would like to know your opinion on this as well.

 
infinum13:

I would like to express my point of view. It seems to me that the tick chart is a movement of "a single volume". That is why each new tick volume changes exactly by 1. It does not mean that at present time there is a deal with the volume 1.

Wrong. The deal was done, yes. But by how much we don't know.

infinum13:

It means that at this moment a deal was made, which led to the change of price (ratio of these currency pairs). In other words, the volume histogram indicator is simply a measure of the rate of change in the market on a given candlestick.

For THIS DC, which only accepts quotes from a handful of vendors. And it filters them, i.e. not all of the ticks go through. The number and composition of suppliers of quotes is not constant.
 
infinum13:. ...........This means that a trade has now occurred which has resulted in a price change ......................

It absolutely does not mean in DC quotes.

This means that the filtered interbank price stream has moved sideways by a sufficient interval to be shifted in the outgoing (output to traders' terminals) quotations.

Ipsos.

 
infinum13:......In other words, the volume histogram indicator is simply a measure of the rate of change in the market on a given candle. .....
Something like this. So, in principle, you can try to extract useful information. Without falling into the illusion of equivalence of tick and real (financial) volumes.
 
I worked as a dealer at a DC... we had a Reuters platform with quotes and Market Depth... We could see which banks were buying and selling and how much in money at the moment. It makes sense if you trade big account as day trader (more than 1m$ a day to move your volumes, if not then it makes no sense to see what banks are doing)
 
infinum13:

Thank you all for your replies. The topic has gone a little in the wrong direction. The glass of prices is a separate issue (and I understood that this is where the conversation was headed).

I would like to express my point of view. From my viewpoint, the tick chart is a movement of "a single volume". That is why at each new tick the volume changes exactly by 1. It does not mean that at this moment there was a deal with the volume 1. It means that at this moment a deal was made which led to changes of the price (ratio of these currency pairs). In other words, the volume histogram indicator is just a measure of the rate of change in the market on a given candlestick. The price change only means that someone somewhere made a deal with someone else. They may not have made it at all at the price that is currently on the exchange at that moment in time. I would like to know your opinion on this as well.


The tick volum is a measure of volatility, not the volume of transactions made.
 

rather than volatility in the conventional sense of the word, but a characteristic of tick-flow.

Sometimes it is useful to compare - both in relation to the same period, but on a different day of the week - for the same pair, and one pair to another.

The number of ticks per second is a "ticking indicator". iVolume(NameVal,Tf1,i)/(Period()*60.0)

especially for crosses...

;)

Files:
fazama0.mq4  4 kb
 
Avals:

The tick volume is an indicator of volatility, not the volume of performed deals.

Yes, but there are situations when, for example, on a relatively small (narrow) bar the tick volume of this bar is extremely high, and vice versa, when on a large (wide) bar the tick volume of this bar is extremely low.
 
kch:

Yes, but there are situations when, for example, on a relatively small (narrow) bar the tick volume of this bar is extremely high, and vice versa, when on a large (wide) bar the tick volume of this bar is extremely low.

Well, the volatility depends on the time interval, for which you want to calculate. For example, the daily bar may also be "small" relative to the previous ones, but the hourly ones it consists of are quite normal. I.e. at the level of the day - flat, but at the level of each hour the volatility is normal. Although I agree with you and avatara, that volatility usually means the change of price in a certain period of time, i.e. the magnitude of increment, but not the number of price changes. But in fact they are strongly correlated - for example, you can compare the histogram of the average change in tick volumes by time of day (eg hourly bars) and a similar histogram High-Low.
 

In addition, there are discrepancies 'in the direction' of the bar and its tick volume.

There is a built-in standard Volumes indicator. I did not know much about it, but my understanding is that if it is green, on the corresponding formed bar the amount of ticks up exceeds the amount of ticks down, and if it is red, on the formed bar the amount of ticks down exceeds the amount of ticks up. Correct me if I am wrong.

For example, yesterday 06.04.11 on GU at 11-30 (GMT) we could see the situation, when a fully bearish bar (marked with a red arrow) "diverged" from its tick volume. That is, with the pound falling at 11-30 in 1 minute by 60 old pips, its tick volume was "bullish".

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