Forex volume
First, to answer the question of why it is desirable to see the real application for the purchase and sale. If the application can be seen, the trader can objectively assess demand - dominate the market "bulls" and "bears"? So, it directly affects the trading strategy trader. In addition, many scalpers are actively using the volumes for the nomination of their applications. For example, a scalper sees bid to buy a large number of shares at $ 20 apiece and exposes its application for 100-200 shares at $ 19.99. What do you think, what stocks will buy first? Of course, the scalper.
Forex is no "glass prices" Partly it is replaced with volume indicators (tab Box gt; Indicators gt; Volumes in MetaTrader): Accumulation / Distribution, Money Flow Index, On Balance Volume, Volumes. In fact, these are oscillators. Principles of operation of these indicators can be found in the above article. You can also add that such a clear picture as to the "glass prices" in the stock market, they do not give, but still can be useful to the trader, defining general Forex volumes.
There is an opinion that the trader successfully trading on the foreign exchange market will be 100% guaranteed to make the stock market. The situation with the volume - one of the features that explain this statement. Without going into the nuances, we note that to receive stable profit in both markets can be. Known traders trading in both markets, but they are a minority. A significant part of traders still operate on any one market, it is not using the other.
When trading Forex also consider the fact that about 80% of the time the price does not move long distances, fluctuating boundaries of several items. Agree, in such circumstances, to determine the volume is irrelevant. If the price gets a boost to the movement in the remaining 20% of the time, it is possible to use trend indicators, ignoring the amount of currency being traded. Generally, variants are possible.
If you do decide to use the volume indicators, do not put on the schedule more than 1-2. A good trader does not clutter the graph, and works according to the algorithm chosen trading system. In addition, there will be confusion with discrepancies in the testimony of several indicators (oscillators).
Profits and stability in the trade! Remember that the gains from trade is highly dependent on you have chosen a broker!
Comments
Post a Comment