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Volumes Sessions

Entry Techniques based in Volumes - Volumes Trading

As already you have heard, the prices of currencies are determined by interaction between who demand a currency and who offer it. The same way as the larger part of wealth (more than 90%) belongs to few people in the world (lesser than 5% - according to last report of Oxfam, in January of 2016, this ratio goes 1% / 99%), the prices are moved only by few companies and banks, who traded high volumes of currencies and they handle information that is not accessible for the most part of the other market agent. They are the Bigwigs of Forex and where we have to point to.

The Volume is the language of the Bigwigs of Markets and reveals what they are doing and where they want to bring the prices and is the most direct bridge between Fundamentals Analysis and Technical Analysis.

The most of traders based their strategies from historical prices and that is a mistake and not profitable in long time. From there comes the popular saying "95% of trader fail in Forex market". In other hand, trading volume allows to work more closely from the fundamentals what is, at the end, the only one reason behind of value of assets (sales, stocks level, rate changes, earnings of companies, solvencies of companies, monetary policies , etc.). We have to begin to think from fundamentals.

Volumes Strength Indicator

  • Indicator plotted as histogram in separate window and shows the behavior of Market Agents within each session trading: Oceania, Asia, Asia-Europe, Europe, Europe-USA, USA.
  • The green bars represent a volume higher to average or highest, whichever is selected in input tab on starting of indicator.
  • Period: The number of bars used for calculation is variable and depends of Timeframe of the chart. It works only for the next timeframe: M1, M5, M15, M30 and H1.
  • HigherTF: H1.
  • The green Bars indicate a more real High Activity.

Input parameters

  • hoursApartStartDayNYCClosingTime: This represent the hours that there are of difference between the hour of the platform and the hour of trading day starts (NYT 17:00). Example: if the platform hour is 23.00 when NYT is 17:00 hrs, then the value here must be -1.
  • calculationOfRelevantActivity:
    • averageSession: It is indicated that there is high activity when the current volume is higher than an average calculate from the previous periods.
    • higherSession: It is indicated that there is high activity only when the current volume is higher than previous periods. This is more exigent than average.

You can find out more information about new indicators based in volumes, trading recommendations and reviews about Forex services in my website.

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Version 1.1 - 2016.03.29
Transition DST changes treatment is added.