Is Forex volume reliable?

Installing and configuring – Tick Volumes


Tick volume is measuring every trade whether up or down and the volume that accompanies those trades for a given time period. If you are a day trader or a short term swing trader, tick volume analysis will assist you in sizing up the market on an intraday basis. Free Indicators, Trading Systems & Expert Advisors for MetaTrader 4 & 5.

Why is volume important to understand?

May 16,  · Tick volume indicates the number of deals concluded over a certain intraday period, but does not show the number of contracts per deal. So it can for example be 50 deals per hour. But how many contracts have been concluded for each deal is not clear from this figure/5(16).

This is where you can configure all the various user settings for your tick volumes indicator. To move from one tab to another simply left click on the grey tab to select the appropriate window. The Common tab displays two boxes. Both of these should be checked as shown.

This ensures that you have enabled the DLL imports as explained in the installation instructions. The default colors and settings are defined by field 1, 2 and 3.

The colors can be changed as follows:. The width of the Tick Volume bars can also be changed. The default is size 3, but the bars can be made wider or narrower as follows:.

To increase or decrease the height of the indicator, simply hover you mouse over the two horizontal lines at the top of the indicator, and when a small icon appears, of two small parallel lines:. Thanks a lot for setting it up - much appreciated.

I have been using the three indicators to complement my trading style of entering on retracements in the trend direction of my chart and I must say that your Quantum Trends seem to be fitting in beautifully to my existing chart! Your writing is thorough and engaging and your principles and trading methods are absolutely brilliant.

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If it's of use to you, I would like to leave a testimonial with regards to this. I like to use tick volumes in Forex as a secondary validation for strength or lack thereof of the market. And as you will see in a bit, it can lend important clues in developing an overall understanding of the direction that price is trading in.

It is reasonable to assume that if price is trading in the right direction, traders should have a keen interest in pushing their order buttons, hence propelling order flow as well as tick volume price should move more rapidly covering a higher tick count.

On the contrary, if price is trading in the opposite direction such as pulling back while in a strong uptrend the move should be associated with lower trading volumes: Staying within the context of what I just said, how exactly should a true breakout from a vivid chart pattern look via tick volumes? If you said big volume bars indicating strong momentum, you are right! Would you be worried about a possible fake breakout if volume bars did not print higher at a breakout point?

You can see pairing tick volume information with other powerful bits of price action information like horizontal support and resistance levels can help expand your understanding of why the market is moving the way it is.

I would caution against using tick volume information as the sole trigger to a trade, but when equipped with other aspects, it can serve as a killer filtering tool helping you choose the best of the best trades. Your analysis will depend on a fast interpretation of the volume price relationship. Second, the indicator prints a dynamic mid point based on the daily data, giving you an instant picture of whether the volume is high, medium or low in the time frame selected.

Again, this is essential for correctly analyzing the price volume dynamic. After all, what is average volume in the London session, may be high volume in the Asian session.

The dynamic mid point level reveals this instantly on the indicator, helping you make sense of the highs and lows of each volume bar. Description Description Many forex traders assume there is no volume in the foreign exchange market.

Tick Volume Definition

For a currency to be traded and for its price to move from one level to another, volume is required.

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It looks great and I have it up and running.

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