Forex for Dummies 2

[lusk]

Tick volume? As in everytime the bid or offer is hit (regardless of size), it's added as 1 on the volume?

If so, not the same. Not even close.

Never said it was the same, its not actual volume but relative volume that allows you to compare to the previous bar. VSA does work with Forex.

 

[MRC & Co]

Never said it was the same, its not actual volume but relative volume that allows you to compare to the previous bar. VSA does work with Forex.

Ok, if you make money trading FX with VSA, then I can't argue.

Doesn't make sense to me though. A 20 lot hitting is different to a 1 lot, see tape reading. The entire point of VSA is to watch for high/low volume and it's affect on price, tick data is quite different to that. Not really getting to see the underlying battle of supply and demand.

If your happy with that though, then good on you.

 

[Cartman]

Never said it was the same, its not actual volume but relative volume that allows you to compare to the previous bar. VSA does work with Forex.

dont want to bog Techs new dummies thread down with idle superfluous chat cause it seemed to annoy him in dummies #1 ---- so perhaps the mods could transfer this line to the old thread if required ---- but i am genuinely very interested in the application of 'relative volume' and VSA on Forex -----

Lusk, any examples of VSA application in this respect would be welcome. Feel free to open it in the other dummies thread (where the real dummies were !!

 

[tech/a]

Mirc,Cartman

Lusk is correct.
Relative volume works very well with VSA.
If anyone wants the link to a 1.5 hr video of Gavin Holmes's Malaysian conference where he answers the question of relative volume and demonstrates VSA on Forex currencies.

Here it is
http://rs6.net/tn.jsp?e=0016C0pmT1u...ZzV_uryJhglSpZhcmrpzuTMjfjvgOPCOLr3HsHrJG3Asf


Also directly on FOREX

http://rs6.net/tn.jsp?e=001wjOGVuLA...2uHYjP39A8WH3K04zUKAeZXBl7vNjyVuYg-zGJ72WWGAL

Right click and save as (Whatever you like) then run.
It wont run direct from the link.

You have of course advertising blurb by Gavin at the beginning and end.
Its the middle you want!

If you think about it a very large holder of contracts isnt going to dump/buy them in 1 trade but many.

I know you all think Forex doesnt conform to volume analysis but these guys who trade it will definately disagree.

 

[Cartman]

Mirc,Cartman

Lusk is correct.
Relative volume works very well with VSA.
I know you all think Forex doesnt conform to volume analysis but these guys who trade it will definately disagree.

thank u for the link Tech ---- i will definitely have a squiz ---

as ive said, i DO use volume to influence trading decisions, but i also think that in FX, momentum tells the same story ---- and often a little quicker than volume can do ----------- but im talking SHORT TERM here ------- VSA is relative to the time frame ---- i thunk !!! (thank u Kauri ---- where the hell is Kauri by the way ----------- i seriously think something may have happened to him

 

[tech/a]

but im talking SHORT TERM here

So am I.

 

[Stormin_Norman]

the fx market is so huge and so liquid that volume is immediately reflected in price.

add up all the volume in all the world's sharemarkets, times it by 5 and you have the daily volume in the foreign exchange markets around the world.

 

[MRC & Co]

the fx market is so huge and so liquid that volume is immediately reflected in price.

Don't think you understand the reason for VSA.

Of course, all volume is reflected in price regardless of the market, but in VSA (at least to me), you are looking for important points, which can be seen clearer with volume, and can give you more conviction, than price alone. Like bottoms, tops and breakouts. These are the areas of which large volumes will generally show up and be of serious note IMVHO.

 

[tech/a]

Deleted off topic

 

[MRC & Co]

Deleted off topic

Yes, I saw the post before it was deleted tech. I am talking long upper wicks with large volume at tops, or long extended moves, or even just high volume, tight ranges (distribution). Opposite at bottoms. Simply just high volume reversal patterns.

At breakouts, good pushes (high volume and closes), through the resistance/support area. Basic Wyckoff.

Perhaps move this to techs VSA thread.

 

[Stormin_Norman]

Don't think you understand the reason for VSA.

Of course, all volume is reflected in price regardless of the market, but in VSA (at least to me), you are looking for important points, which can be seen clearer with volume, and can give you more conviction, than price alone. Like bottoms, tops and breakouts. These are the areas of which large volumes will generally show up and be of serious note IMVHO.

i understand what youre saying. i think however price makes volume, not the other way around in forex. there are such varied ways to trade in the forex market, and its such a big market that i doubt an absolute truth on this (and many other) issues will ever be absolutely decided.

remember though there is no central market for FX, so any volume figures you obtain from your broker will be only a small part of the market that they are in (abit possible an indication of the wider market).

 

[MRC & Co]

i understand what youre saying. i think however price makes volume, not the other way around in forex.

remember though there is no central market for FX, so any volume figures you obtain from your broker will be only a small part of the market that they are in (abit possible an indication of the wider market).

Obviously, volume moves price: supply and demand determine price. At important levels though, you make a good point, volume will come in dependent on where price is trading. Again, this is all the same difference and will be seen with VSA.

Your second point is exactly my point. I have a bad feeling that tradeguider tries to apply VSA to FX to help promote their product to FX traders. Then again, if lusk trades successfully with it, then it can be done. But sort of defeats the entire premise of VSA to me.

 

[caribean]

I think this is a thread which will help more people than myself.
I hope those who managed to destroy the initial thread will have the maturity to let this thread be a valuable resource for those of us with genuine basic questions.

Thank you to those who have contributed positively so far.

Hi ,i'm surprised someone with your ability has the need to ask any kind of questions, even about a market you're only just starting to trade.
In saying that, and not having read all the aswers to your initial questions, it's great to see you and other people interested in currencies,
it might be that currency futures are your thing as they provide true volume,
plus bid&ask volume.
Current symbol for EUR/USD is 6EH9 on Globex.
IMHO currencies are a technical traders paradise, currently best times (assuming you don't want to stay up all night) is starting to get ready around 5:00 PM watch 6:00 pm European open and 7:00 PM London open, i usualy stay up till 9:00 to 10:00 PM, i don't feel the need to stay up any later.
Initial margins on IB are a bit high i think, with maintenance and overnight margins around the $5000.00, per 125000.00 contract ,$12.50 per point(which is the minimum if trading futures).
Good luck with your trading.

 

[motorway]

Obviously, volume moves price: supply and demand determine price. At important levels though, you make a good point, volume will come in dependent on where price is trading. Again, this is all the same difference and will be seen with VSA.

Your second point is exactly my point. I have a bad feeling that tradeguider tries to apply VSA to FX to help promote their product to FX traders. Then again, if lusk trades successfully with it, then it can be done. But sort of defeats the entire premise of VSA to me.

MRC

If we see strength in a down bar/move

What is the strength we see ?

If you say strength is the volume + price movement ( off the bottom )

Then what comes first the down move or the volume

Did the volume lead the price ( down move )
or did the down move (price ) lead the volume

egg and chicken ?

However

Substitute changes in liquidty

This must lead both price and volume..

motorway

My 1/2 of

 

[tech/a]

Hi ,i'm surprised someone with your ability has the need to ask any kind of questions, even about a market you're only just starting to trade.

I love Sport.
Can bearfoot water ski.
Can snow ski proficiently.
But I cant Surf---- know I'd enjoy it!.

Reckon I could but if I ever took it up would have to ask all the dumb questions.

Infact its quite similar FX and Surfing.
Both have sharks as a hazzard!

 

[Stormin_Norman]

fx and surfing is very apt.

wait around, watching the bobbles, waiting for the big waves to catch.

you dont really need to know why the waves come, just be in position to catch them when they come!

 

[white_goodman]

fx and surfing is very apt.

wait around, watching the bobbles, waiting for the big waves to catch.

you dont really need to know why the waves come, just be in position to catch them when they come!

unless your too top heavy like me and get pitted and dragged onto the reef

 

[caribean]

I love Sport.
Can bearfoot water ski.
Can snow ski proficiently.
But I cant Surf---- know I'd enjoy it!.

Reckon I could but if I ever took it up would have to ask all the dumb questions.

Infact its quite similar FX and Surfing.
Both have sharks as a hazzard!

Wow i'm impressed by your reply!
The surfing, sharks and all the rest...did you have to think very hard for that extraordinary piece of writing, and did you understand exactly what you are insinuating ???
Never mind, i have to thank you, you reminded me why i only post in a private forum.

 

[MRC & Co]

egg and chicken ?

However

Substitute changes in liquidty

This must lead both price and volume..

motorway

My 1/2 of

Yes, it's all the same difference in the end.

I'm not sure I understand what you mean by substitute changes in liquidity?

 

[Cartman]

Substitute changes in liquidty

This must lead both price and volume..

motorway

i like the way u talk in riddles M/W ------ i do it too, but my reasons are mainly due to a molecular inconsistency within the sub thermal membrane of my endoplasmic reticulum ---- ---- just joshing with ya!

seriously though ---- i like the way u think ---- if i was to say in regard to yr statement above --- 'Substitute changes in liquidity" etc that i will substitute yr statement with the following -------

the position that volume enters the market in relation to the position of both the short, medium and longer term cycle of the given instrument, has the most bearing on the importance of that volume ---- AND (i know u want more ----

the position that volume enters on a given bar (particularly high range bars) is of even more importance to a shorter term trader ---

would that make any sense to u??? ----- just curious ----- cause most people wont bother to even read what i just wrote lol ----- and who could blame 'em!!