Intraday trading with FX Volume

Through the years, I've been asked many, many times, which is the best indicator and if it is possible to trade the market with just one indicator.

My opinion is that every single tool adds an important piece to the puzzle with its specific analysis, and you'll benefit from it.

But the longer I use FX Volume, the more I think it is possible to trade Forex with just one tool.

Here is an example of Wednesday last week of a EURUSD short trade, and the screenshot was taken at the trade execution.

-> At this time, I trade EURUSD short, GBPUSD short, and we'll get into the details of why I took these trades further down below.

If we zoom in into the FX Volume analysis views, we see a massive change in the USD long/short positions during the 8 hours of the Asian trading session.

This clarifies the current market dynamic is positive for the USD - so we like to BUY USD and watch for suitable counter currencies.

The best counterparts we found at this moment have been GBP and EUR, which both showed a clear dynamic on the short side.

Why not CAD? Because it's not dynamic enough. 


And what's the outcome of these two short trades?


EURUSD hit its target, GBPUSD not due to some positive News.

The interesting point is that if we see such a scenario in the underlying REAL MARKET VOLUME provided by FX Volume there are almost ZERO countermoves in such a trade.

So you can trade with tight stops which offer awesome opportunities for the risk-reward ratio.

And things get even better!

With FX Volume 3.23, we added the possibility to combine different views AND comparison periods in just one chart.

So you can create a combined view like this one with an 8 hour long/short volume comparison on top and a 1 hour long/short comparison below.

In this way, you'll easily see if the short term volume during the last hour (1H) is still dynamic and supporting the volume change of the higher period (8H)

This offers an entirely new grade of precision because you now see exactly when to enter, when to exit and if it's still worth to hold the position.

But that's a topic for the next trades and articles next week.

Stay tuned and enjoy the new possibilities!

All the best and happy trading 

Daniel