3 Ways to Improve a Strategy Using Real Trading Volume The free Real Volume indicator from FXCMapps.com can be use to confirm breakouts, to confirm trends and to identify reversals. Using volume to confirm breakouts More details on how to use Real Volume to confirm trends and to identify reversals can be found in trading instructor Rob Pasche's article on DailyFX.com.
Talking Points from this week's volume report: Multi-year lows in the euro, but volume still lacking USD/JPY consolidation occurring on low turnover Daily Volume Chart: EUR/USD
Aussie Dollar Declines After RBA Cuts Rates by 25 Basis Points The Australian Dollar declined over 1.6 percent versus the US Dollar after the Reserve Bank cut rates by 25 basis points. Economists were expecting the bank to keep rates unchanged at 2.50 percent. Directional Real Volume (DRV) shows that selling volume exceeded buying volume by a factor of 2 to 1 at the time of the announcement. DRV is one of 5 new real volume indicators are available for free on the latest version of Trading Station Desktop.
AUD/USD - Yesterday’s Key Reversal Could Speak Volumes Yesterday’s key reversal day in AUD/USD on massive volume* (the highest volume day since June of 2013) has brought into question whether it has found some type of bottom or not. The low of yesterday came at the under-side of a multi-month channel, and dialing in a bit closer (4-hr time-frame) we can see an inverse ‘Head-and-shoulders’ pattern under development. On a break of yesterday’s high (7852), the next area of significant resistance comes in between 8000-8100 (Pivot low last month/upper-channel line). _ * Real Volume is one of 5 new volume indicators available for free on the latest version of Trading Station Desktop. If you already have this platform on your computer, it will automatically update to the latest version after this weekend. However, you can download the latest version now from our website.
Lack Of Volume Favors The Dollar Post-NFP DailyFX Senior Currency Strategist Kristian Kerr uses the new Real Volume* indicator on Trading Station Desktop in his latest Price & Time analysis: Daily Volume Chart: EUR/USD recovers on weak volume EUR/USD has rallied steadily from the 11-year low recorded late last month Declining volume during the recent rise suggests the advance is likely only corrective A modest push higher in daily OBV levels also favors an eventual downside resumption A close above 1.1525 on above average volume will keep focus higher Daily Volume Chart: USD/JPY consolidation sees diminishing turnover USD/JPY remains in consolidation mode below 122.00 Decline in volume since early December suggests action since then is likely only corrective However, the persistent decline in daily OBV over past few weeks is a warning sign that a deeper decline may be unfolding A close under 116.35 on above average volume would turn us negative on the exchange rate * Real Volume is one of 5 new volume indicators available for free on the latest version of Trading Station Desktop which will go live after trading closes for the weekend this Friday at 5pm New York Time. After that, your platform will update automatically the next time you log into it. If you do not have Trading Station Desktop yet, you can download it for free.