Greetings to all,
Can anyone answer if the volume indicator acctually shows real volumes or is it just a "spike" in price change?
The volume data is usually lots traded within the broker that provides it.
My understanding of volume is that, for retail Forex, there is no a centralized exchange bourse which could provide real volumes. Forex are just tick volumes, which are nothing more than a counter of price changes. And this is at the broker level.
I think "volume" as an indicator can still be used, but I'm not sure if it can be considered a leading indicator; rather, it can be used as confirmation of when prices move in the direction of a trend. (I'm open to suggestion on this last remark.)
It can be used to identify the most active instruments, because who want's to trade a instrument that is barely moving at all.
It does not tell anything about direction so the trending filter can come after the volumes selector.