What is tick volume in forex trading?
Quite often, Forex traders encounter indicators and expert advisors that apply tick volume to analyze or trade currency pairs. Tick volume that is present in every MetaTrader platform is based on the number of price updates (ticks) that come during the formation of a given bar or candle.
What is the difference between real volume and tick volume?
So the real volume would be larger in the second, but the tick volume would be identical. And I’m not sure what you mean by tick floor, but hopefully that answered your question.
What is the tick volume indicator?
What is tick volume? The tick volume indicator 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.
What is the difference between a pip and a tick volume?
So the real volume would be larger in the second, but the tick volume would be identical. And I’m not sure what you mean by tick floor, but hopefully that answered your question. Thanks…. that did answer it. A tick would simply be the amount of times the price moved within a particular bar. A pip is a movement of 10 points.
Is tick volume the same as volume?
Tick charts show a set number of transactions and let traders gather information about market action. Volume charts show the actual number of shares that are being traded by market participants at any given time.
What is tick volume in Forex?
What is tick volume? The tick volume indicator 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.
How do you calculate volume of a tick?
The computation for the tick volume study simply counts the number of ticks during the interval specified on the Intraday chart. For example, if you are monitoring a 5-minute Intraday chart, the tick volume study counts the number of ticks that occurred during that 5 minute trading interval.
How accurate is tick volume?
These researchers have been supported in their endeavours by the work of Lee and Ready (1991) which suggests that the tick rule is 90% accurate.
What is tick volume in MT5?
Tick Volume, the volume you see in your MT4/MT5 terminal by pressing Ctrl+L, is the sum of price changes within a particular price bar/candle. It does neither contain the direction of the trade behind this price change, nor the size traded at this particular price.
What is a good trading volume?
Thin, Low-Priced Stocks = Higher Investment Risk To reduce such risk, it’s best to stick with stocks that have a minimum dollar volume of $20 million to $25 million. In fact, the more, the better. Institutions tend to get more involved in a stock with daily dollar volume in the hundreds of millions or more.
Is volume accurate in forex?
It is a well-known fact that volume, as you see on your Forex pairs, is actually not ‘true’ volume and is really only ‘tick volume’ implying simply the number of ticks that price moved in that given time frame.
Is volume important in Forex?
Volume is a vital indicator for most traders and we can use it to add depth to our trading and increase our win rate. The most effective strategy for using a forex volume indicator is to use it in conjunction with key trading levels and price action.
What is the tick index?
The Tick Index indicator shows the number of stocks trading on an uptick minus the number of stocks trading on a downtick. The TRIN (Trader’s Index) indicator is a technical analysis indicator calculated by dividing the advances-to-declines spread by the volume of advances to declines.
What is the best volume indicator for forex?
The best volume indicator used to read a volume in the Forex market is the Chaikin Money Flow indicator (CMF). The Chaikin Money Flow indicator was developed by trading guru Marc Chaikin, who was coached by the most successful institutional investors in the world.
How do you trade forex with volume?
1:4816:18How to Use VOLUME ANALYSIS in Forex Trading (Size Really Matters )YouTubeStart of suggested clipEnd of suggested clipWe use volume analysis for determining. Strong trends we can also use a volume analysis to help usMoreWe use volume analysis for determining. Strong trends we can also use a volume analysis to help us predict those turning points to give us confirmation of a turning point in a trend.
What does On Balance Volume tell you?
On-balance volume (OBV) is a technical indicator of momentum, using volume changes to make price predictions. OBV shows crowd sentiment that can predict a bullish or bearish outcome.
Why tick volume is bad?
First, the main idea of tick volume is flawed — one tick (price update) may be caused by either a small volume trade or a very large trade — it will not be accounted for in the tick volume, which will increase by one notch only. Moreover, big trades may happen within the broker’s current price spread, which will not generate a tick.
Why tick volume is good?
Given the lack of real volume information in the foreign exchange market, tick volume serves as the best estimate for this “real” volume that retail traders can find.
Tick volume discrepancies
Here are some examples of EUR/USD tick volume discrepancies at two online brokers and for the EUR futures contracts (continuous).
Conclusion
As you have noticed, tick volume changes sometimes do not hold even between two brokers. At the same time, a change in volume (the volume at bar N is higher than the volume at bar N−1 or vice versa) is crucial to operation of such popular indicators as Better Volume and Volume Suite.
Trading volume
When marketplaces overlap, such as the London-New York overlap or the Tokyo-London overlap, there is a lot of volume.
What is a tick volume?
A tick volume is a measurement of the smallest upward or downward fluctuation in the price of a currency pair.
How to use a forex tick volume?
The most important thing for you as a trader is to find the entry point. Some pull the trigger immediately, while others wait for the confirmation to appear. And that’s is exactly what tick volume tells you.
Pros of tick volume
Given the scarcity of real volume information in the forex market, retail traders can rely on tick volume as the best indication of this real volume.
Cons of tick volume
The broker’s data feed is the most important aspect in determining tick volume figures. Unfortunately, forex brokers apply a number of data feed that is based on various combinations of liquidity providers. As a result, there are inconsistencies between what tick volume indicates at one broker and another; these disparities can be pretty big.
Bottom line
If you are trading with the tick volume, spend time studying your charts using tick volume data.
lwlee
I’ve been studying AHG thread and incorporating different types of charts into my daytrading.
Lucrum
I’ve been studying AHG thread and incorporating different types of charts into my daytrading.
lwlee
Your description as well as ProfLogic’s in the posted thread mirror my sentiments. Glad to know others have chosen the same style.
Why Tick Volume Is Bad?
Why Tick Volume Is good?
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Given the lack of real volume information in the foreign exchange market, tick volume serves as the best estimate for this “real” volume that retail traders can find. Despite the discrepancies in tick volume at different brokers, general trends in this volume usually hold between brokers. Moreover, there is even some correlation between tick volume and Forex futures volume.
Tick Volume Discrepancies
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Here are some examples of EUR/USD tick volume discrepancies at two online brokers and for the EUR futures contracts (continuous). Exnesstick volume from the EUR/USD weekly chart is presented below. Some volume levels are marked with red lines for clarity: AGEAtick volume from the EUR/USD weekly chart for the same period with the same volume values marked with red lin…
Conclusion
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As you have noticed, tick volume changes sometimes do not hold even between two brokers. At the same time, a change in volume (the volume at bar N is higher than the volume at bar N−1 or vice versa) is crucial to operation of such popular indicators as Better Volume and Volume Suite. Unfortunately, the high level of discrepancies between data feeds that form tick volume renders …