Did you have to say that? Before long the anti volume crowd will descend on this statement like flies. Arguing semantics as if their very lives depended on "winning" the argument. It's a real can of worms alright.
Let the 'crowd' chew on this. Price is incidental to the following factors. 1. 'Who' wants to do business. 2. How much business 'they' want to do. 3. 'Who' is willing to take 'thier' business on. 'Sentiment' has an 'order' or 'flow', this creates the cycle and the price. Dackster.
I'm not sure how useful that would be. The FX market consists of a network of market makers. If a big order for EURUSD comes into one market maker. That market maker will shift their quote and also pass off their exposure to other market makers. The initial order creates maybe ten times it's size in total volume as the price change is propagated across the network. Also remember that while market makers are moving their EURUSD quote, they are also moving quotes in all other EUR and USD pairs to keep them in line. This also generates volume in those pairs. So you see that the majority of volume in FX is simply a manifestation of price movements. This is why when you compare volume at any venue with tick volume there is always a very high correlation.
Volume and Price are one and the same. can't have one without the other. Volume drives price and price attracts volume. To disregard one for the other is like cutting off your left hand because you can grasp with your right.
Here's the definitive post of the thread occurring on page 1. As you can see from the pages that have followed, there are too many ways to interpret volume and it is much too subjective to be a useful tool. Volume analysis is to be discarded since it has no significant value to the successful trader-- Ishmael --let's not forget--price can move without volume.---
Why is it that in any other business being precise is imperative but in trading close is good enough? Trader, hedgers and investors have been feed $hit for so long they are beginning to think it doesn't taste bad.
Please read the pages of this thread and you will see why volume analysis is "too much information" for the successful trader. Thank you for your time--Ishmael
For some traders just having a computer is "too much information". Correctly using volume increases your success rate not deminishes it. There is nothing subjective about laying out your charting using constant volume bars. You simply adjust the volume based on how you trade; Intraday, Swing or Position.
Exactly! Very few people know how to use volume correctly. Taking a snapshot of volume covering 1 min bars, and then trying to form a coherent and useful application of this is ridiculous, to say the least. Dackster.