unable to give the trader the actual data on the volume. The trend strength falls with tick volume. The MFI is calculated by: MFI (high low) / volume The formula is very simple, yet provides various interpretations in combination with volume. Pink indicates the beginning of a trend continuation or reversal. The strategy is simple to learn, does not overload the price chart with redundant constructions and is able to provide advancing signals of high accuracy. Did you notice that volume does not have the same importance as in stocks and futures? Important: for the fans of the precise strategy and wave analysis if the "pink" bar coincided with the "Pin-bar" or "Doji" pattern, is in the current wave and there is divergence on macd, the probability of a reversal is almost 100. The volume measurement in the Forex market is looking at how much price moves within a certain period and it does not care how many or few buying and selling transactions are in fact needed to make that price move 1 tick. How is volume measured in the Forex market? Only relative dynamics matters.e.
These are the volume tic tac pannelli forex tools you can use in the Forex market. If volume picks up upon the break of that consolidation pattern (wedge, triangle, flag, etc then the volume is confirming a higher chance of a sustainable breakout. All it knows is how many ticks it moved, regardless of the fact if 100 trades were involved or 10,000. Brown dying profit taking is ongoing without the intention to open in the opposite direction. Price movement is always forced by an imbalance of supply/demand. Volume analysis helps at least indirectly assess the activity of professional players who set the rules, start new trends, "pull" the price by major transactions and create traps for the market "lemmings". The index of "relief" in the market: MFI indicator (Market Facilitation Index). For the Forex market there is no a centralised exchange burse which could provide real volumes. If the volume is increased when the market is correcting in a downtrend, then this typically means that more buyers are stepping into the market and a reversal could occur.
If price were to test swing high/low at off market hours the volume will surely be lower. The Forex market measures volume by counting the tick movements. The volume measurement in the Forex market is looking at how much price moves within a certain period and it does not care how many or few buying and selling transactions are in fact.