Skip to main content

The volume indicators in Forex

By

The volume indicators in Forex



General rules for all volume indicators Forex:
1. If trading volumes are reduced, the interest for the currency pair decreases, possible short stabilise prices or a change in trend (trend).
2. When you increase the volume of trade transactions should expect an increasing interest in the current dynamics of the exchange rate, the trend may intensify and turn around.
3. There are situations where a gradual decrease in volume leads to a drastic price change.
4. In the presence of the peaks of the volumes of a possible trend reversal.

As you can see, the signals are still obscure. To improve the accuracy of prognosis, it is necessary to use additional indicators - for example, moving (Moving Average).

In the terminal MetaTrader 4 there are 4 types of indicators: Accumulation/Distribution, Money Flow Index, On Balance Volume and Volumes (Insert menu gt; Indicators gt; Volumes). Let us learn more about the features of each of them.





Accumulation/Distribution (A/D)


The name of the oscillator is translated as “accumulation/distribution”. When the analysis takes into account only the direction of the curve of the oscillator, the numerical values are not important.


Money Flow Index (MFI)


This oscillator is very similar to relative strength index (RSI), but takes into account the volumes (teak). MFI is good to use as an indicator to determine the strength of the cash flows invested in a particular asset or derived from it.

By analogy with RSI, to analyze Money Flow Index important 2 signal - divergence and the movement curve of the oscillator to the overbought (80) or oversold (20).


On Balance Volume (OBV)


Consider the volume and price changes, which accompany this volume.

Consider only the direction of the curve, not its value (level).

In most cases, the indicator OBV follows the price, repeating her movements. If there is divergence (divergence) indicator with the price, we can expect a reversal of the current trend.

The graph of the oscillator OBV can be applied as trend indicators and other oscillators.


Volumes


The volume in this case is the number of contracts for all trading transactions for a certain time interval. Low volume means that investors have not decided this is the case for consolidation. If most of the players are confident in their abilities and the positive dynamics of prices, volumes will grow.

If the trend is up, Volumes will increase in periods of growth rates and decrease in the period of its decline. In a downtrend all the way around - volumes grow in periods when prices are falling.

In General, you can use any of the above described volume indicators, but not to clutter the graph of their accumulation. After the comparative analysis, we can conclude that in the main data the volume indicators very similar, however, they are quite useful for analyzing the current market situation.


Remember that the profitability of trade is highly dependent on your chosen broker!



Labels:

Comments

Post a Comment

Popular posts from this blog

Professional Forex.

By
Professional Forex. Secrets of professional traders Today trading conditions almost all Forex brokers contribute to the fact that all new traders are in the same starting conditions. Players are provided with the most modern technical tools for trade - convenient terminal (MetaTrader), multiple indicators, scripts, Forex and advisors. In the terminal there are many functions - from the creation of new indicators to fully automated trading. Thus, the major players and private traders trade in identical conditions. But the technical potential is only part professional Forex -of trading. Many inexperienced players pay too much attention to current events, losing sight of the overall trend. Professional highlights the most significant events in the great flow of information and not sprayed. Trader-professional always has: ? the long-term goal. ? a clear plan of how to act when the price moves in one direction or another. ? record all of your transactions (with justification - why bought it...
Post a Comment
Read more

Forex forecast for today

By
Forex forecast for today The only caveat - be sure to open an account through a broker Alpari. As an option, you do not even need to replenish it, just are registered and you will have access to the full analyst on trade. For example, I made a screenshot that will see if a trader opens an account Forecast at account opening (without limitation, all currencies) When opening an account will also be active orange links that show a detailed forecast together with a timetable: As I wrote above, for complete statistics, you can open an account without replenishing it, although many traders, with whom I talk, as I have several trading accounts with brokers and the fun that account with Alpari many is basic. This is not surprising, because the company is among the three leaders of the Russian-speaking brokers, and some types of orders, it is best to send only through Alpari. So use this service to analyze and predict the behavior of currency pairs and let your profits g...
Post a Comment
Read more

Advisor ilan (Ilan)

By
Advisor Ilan (Ilan) The robot uses the so-called “break-even” trade, when the emphasis is not on the accuracy of the prediction of the price movement, and actions in case of an incorrect prediction. According to the assurances of developers, trade Ilana use know-how “adaptive averaging the total position”. This means that the profit will be obtained regardless of which way the price will go after the opening of the transaction. Achieved this effect by increasing the lot on Martingale (the coefficient can be set in the settings, on average, from 1.2 to 1.7). In practice it looks like this: open a long deal with TP=10 pips, the price has gone down, the robot opens the 2-position of the a little increased a lot, TR2 is shifted below TP1. That is, when you roll it back up into a number of points all positions will be closed on the last TR. Some deals will be unprofitable, part (with larger lots) - profitable, but everything is designed so that in total we have profit. If the price conti...
Post a Comment
Read more