john
New trader
Posts: 25
|
Post by john on May 27, 2015 6:11:47 GMT -5
Hi,
Do you think the volume indicator is worth watching? I understand how volume is worth watching from a centralized exchange but how can it be helpful when used in such a fragmented arena such as forex?
Thanks for your thoughts
John
|
|
|
Post by fxoutlier on May 27, 2015 16:44:03 GMT -5
Forex is moving towards a centralized exchange, it is almost inevitable and you may soon be seeing major changes in the way data is sourced. Ticks and volume are not mutually exclusive but both form the order flow that traderallen uses to enter trades. I am not the expert and he is, so it will be interesting on his thoughts, but if you have the tick counter on prorealtime, you can add the volume indicator to the bottom of your charts to show the volume in each 70 tick bar to see if it has any effect yourself. You will of course have to observe over a considerable period of time with serious stress to yourself, but if you do you will come out the better for it. It will be the stress and pressure that will strengthen you as you fight your emotions and stick at your task. In Ninja if you add the time indicator to the bottom of your charts like Allen or dd does, it shows the speed of each bar which is a different parameter, but is what gives you a similar heads up at the moment of entry. TraderAllen has spent the time observing the order flow alongside the Volman setups and pressure in the charts which is what I am presently doing but only in an early stage of development. I suggest you choose how you want to observe order flow as you yourself wishes, to suit your personality and persevere to develop the almost intuitive abilities that Allen appears to possess. It's about spending time observing and improving. Read Malcolm Gladwell's ''Outliers.'' Just my thoughts, but by no means the answer.
|
|
john
New trader
Posts: 25
|
Post by john on May 27, 2015 17:46:27 GMT -5
Just a bit of further information. The platform I use is MT4 (but only on a demo)
|
|
|
Post by traderAllen on May 27, 2015 23:06:38 GMT -5
I don't think volume in its current form is of much use to the 4X retail trader. Go to my website click on the tab my trading day and scroll down to the diagram showing retail order flow www.wallstreet2easystreet.com/my-trading-day.html Any order less than $100,000 never leaves the retail market maker level. Most retail Forex traders orders more than 100,000 still never leave the retail market maker. That makes the volume showing up on most brokers different. Since we all have different volume it's not going to show us much of anything worth watching. Since I don't believe it's any value, adding it to your chart would be a distraction. Don't add distractions!!!
|
|