Volumes real or fake?

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broodforge
110
broodforge  

Greetings to all,

Can anyone answer if the volume indicator acctually shows real volumes or is it just a "spike" in price change?

Eleni Anna Branou
Moderator
7015
Eleni Anna Branou  
broodforge:

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.

Anthony Garot
1954
Anthony Garot  
broodforge:

Greetings to all,

Can anyone answer if the volume indicator acctually shows real volumes or is it just a "spike" in price change?

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.)

Marco vd Heijden
Moderator
8429
Marco vd Heijden  

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.

itum
1556
itum  
I think that is realfake )
broodforge
110
broodforge  
Itum:
I think that is realfake )
Well that was what I suspected !=)
THanks all to all replies!
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