Price Volume Forex

Discussion in 'Forex' started by, Mar 7, 2006.

  1. I' d like to start a discussion here on forex specific problems of price/ volume analysis.
    I don't want to differ too much between spot forex and globex. I see globex, just like EBS, as one of the main constituents of that decentralised market. Applicable volume is open to discussion, I propose globex, esignal and EBS, if you can get that.

    The thread on PV in general is:

    There's a reason this thread got 117k views, anybody who doesn't know who dbphoenix is and didn't read that thread, in all politeness, please abstain from posting here.
    If you're new to the topic you first might get the pdf from:

    I state a few of my beliefs here:

    PV is about disputes.

    Trend lines or pivots or whatever may indicate where this disputes might be carried out.

    The outcome of the dispute is determined by price, significance of that outcome by volume or other timeframe participation.

    I do like the concept of "time pivots" and "price pivots". In full knowledge of a dispute waiting to be resolved, the parties involved might want to make an appointment when and where to do that.

    I do see specific problems in forex, regarding the non-centralised character of it, nevertheless it is an auction market like any other.

    That leads to my first question:
    What clues do we have, when and where disputes will likely be decided?
    -Trendlines of course.
    -Major fib levels should be unanimous too.
    -Floortrader pivots:
    Are they significant, and what's the applicable open and close? (I have found differing pivots on different websites)

    Anything else than major news releases worth monitoring? With other words: what´s the open?

    Looking forward to replies...
    If you think, I should move this to futures section of ET please tell me.
  2. hcour

    hcour Guest

    One option for an FX trader is to look at the corresponding futures mkts for volume. In the top panel are the daily charts for the Mar Yen (yellow) and the JPY/USD (white), an almost perfect negative correlation. In the bottom pane are the Mar Euro and the USD/EUR, an almost perfect positive correlation.

  3. Well,yes that's what I mean with globex.
    I do follow the CME futures, I get my futures quotes from IB.

    You can compare futures and spot forex realtime with the CME calculator:

    If you remove forward points, spot and future quotes should be identical at all times, at least the spread should be overlapping.
    If this is not the case somebody probably screws you.

    Besides the CME/ globex future volume which is standardised, there are estimates of spot volume, that are not exact but good enough.
    I am using the esignal one and the one from (MetaTrader 4 demo) which is free.