How to use volume indicator - page 5

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VolumeStrategy

Hi

I know that it's not possible to measure volume per say, yet we have volume indicators.

Is there someone who is currently trading or working on a volume trading method. I am currently using the expected_volume indicator which i have attached.

I don't have a strategy with it as such yet, but have some ideas. It will be nice to find out what others are doing about it.

Files:
expected_volumes_.mq4  3 kb
 

Some of you still don't get it. There is NO volume data on MT4. Just because it says volume doesn't mean it is the actual volume, it's tick volume, not size volume. So there will never be any kind of indicator because the raw data does not exist.

 

Volume Analysis

I have been studying volume analysis for some time now and would like to share some ideas here. For the most, the information that I attribute to is from the "Master the Markets" by Tom Williams. My analysis comes in two parts: first is candlestick analysis, the second is volume analysis.

I use various candlestick formations: doji, harami, hammer, spinning top and engulfing candles. I basically watch for the formations to appear near key support and resistance levels and then move onto the second part, volume analysis.

For my volume analysis, I will monitor how volume reacts to these key levels as well as interpret it with the candle formation.

Observing the attached pic you will notice that in the shaded area, that a bullish engulfing candle has formed. Volume has been increasing as well as the total spread of the bar. You can use what ever you like to determine the trend. The volume has exceeded the average that I use (the 15 ema) on the volume indicator. I would drop down to a five minute chart to look for a small retracement and enter on a possible 1-2-3 formation.

Possibly someone out there can assist me and creating an alert for this. One thing that I am looking at is an alert that would signal audibly and visually when the volume exceeds the 15 ema on the volume indicator. Another advanced alert could be that it would signal when the 15 ema is exceeded as well as having a candle form with a wide spread. (high and low). There is much more to volume spread analysis than this but this may be a good start here. I will add more charts and actual trades as time permits. Any thoughts would be helpful.

Files:
swiss_franc.gif  18 kb
volume_custome_ma.mq4  7 kb
 

Volume "indicator"?

Good morning DeSoft,

I am also working on Volume as of late, but discovered that what I thought was "real volume" information on the MT4 charts, are in fact the number of TICKS per candle. (As per Project1972's post above) I am not sure that it is helpful yet, but with the help of my friend Gerhard, we are now measuring these ticks on a drop-off bases studying the most recent 8 candles. So far so good.

I am interested to know what indicator you are using on which the 15-EMA is running and whether that reflects true volume in contracts traded. I have downloaded both your indicator and that of SpiritBreezer to compare to mine.

Best wishes.

 
ValeoFX:
Good morning DeSoft,

I am also working on Volume as of late, but discovered that what I thought was "real volume" information on the MT4 charts, are in fact the number of TICKS per candle. I am not sure that it is helpful yet, but with the help of my friend Gerhard, we are now measuring these ticks on a drop-off bases studying the most recent 8 candles. So far so good.

I am interested to know what indicator you are using on which the 15-EMA is running and whether that reflects true volume in contracts traded.

Best wishes.

Good morning,

You are correct that it is tick volume but even this volume can be used to determine what the professional money may be doing. In the Forex case, it is the most likely the broker and other market makers. None the less, I have used it accurately in every market that I trade. I have posted the indicator on the first post. My advice is to pick up two books, the first is "Master the Markets" by Tom Williams and the second is "The Secret Science of Price and Volume" by Timothy Ord. After studying the works of Richard Wyckoff, my trading improved beyond measure. Hope this helps.

 
desoft:
Good morning, You are correct that it is tick volume but even this volume can be used to determine what the professional money may be doing. In the Forex case, it is the most likely the broker and other market makers. None the less, I have used it accurately in every market that I trade. I have posted the indicator on the first post. My advice is to pick up two books, the first is "Master the Markets" by Tom Williams and the second is "The Secret Science of Price and Volume" by Timothy Ord. After studying the works of Richard Wyckoff, my trading improved beyond measure. Hope this helps.

Much appreciate your advice here. Will certainly try to get the books you mentioned although it is very difficult in this part of the woods.

I am also a great fan of Richard Wyckoff's work.

Best wishes.

 
ValeoFX:
Much appreciate your advice here. Will certainly try to get the books you mentioned although it is very difficult in this part of the woods.

I am also a great fan of Richard Wyckoff's work.

Best wishes.

Send me a private e-mail and I will forward them to you in pdf format.

 
desoft:
Send me a private e-mail and I will forward them to you in pdf format.

Thank you for sending. Very nice. People hear are good to me.

 

HI yaaaaaa !

Valeo and Desoft

Don't know if it's interesting or not, but you can check this :

Normalized Volume Oscillator - MQL4 Code Base

It's : Normalized volume indicator

Seems interesting to me

 
Big Joe:
HI yaaaaaa !

Valeo and Desoft

Don't know if it's interesting or not, but you can check this :

Normalized Volume Oscillator - MQL4 Code Base

It's : Normalized volume indicator

Seems interesting to me

Thank you for your input but not how I use volume. There is no need to add any normalizing or smoothing of volume. I read the market with price spread and candle analysis. I am just looking for someone to possibly code the alert that I requested. If someone can then I would be more than happy to share my strategy here.

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