You can't trust volume indicator on forex, but can you trust volume on CFD's?

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mrluck012
261
mrluck012  
Volume is very underrated as an indicator, but it adds an extra dimension to this game, before we only have price and volume, i'm sure volume is important to create trading strategies, on forex you can't use this, but what about CFD's, can you trust volume indicators from brokers who work with this? these values are right?
Marouane Majid
1677
Marouane Majid  

Hello

on forex you can also use volume but it's interpreted differently, it represents the number of ticks during the bar period. for example if you have a big volume on a small candle you can explain by a big interests of bears and bulls and the market may reverse the trend.

Jose Francisco Casado Fernandez
5160
Jose Francisco Casado Fernandez  

CFDs are assets created by certain brokers, based on a certain underlying asset, in a kind of internal market only for their clients. Hence, for example, a CFD based on the German DAX30 has a different name in each broker. Therefore, its volume refers only to that internal market created by that broker in particular. And it's tick volume, just like in Forex.

If you want real volume (as well as Times & Sales, etc), I would recommend using MT5 connected to a futures broker (AMP Global Clearing for example), even if you do not like MT5.

Regards.

mrluck012
261
mrluck012  

so the answer is no real volume for CFD... thanks for answer

Jose Francisco Casado Fernandez
5160
Jose Francisco Casado Fernandez  
mrluck012:

so the answer is no real volume for CFD... thanks for answer

Exact.  You are welcome.   Regards.
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