Trading in the FX market using mechanical trading strategies. I hope you enjoyed this article! Learn Forex at FXAcademy. Most Trusted Forex Brand, UK Global Brands Magazine. We have price candles, volume bars, stratfgy.
Proper stratgy of the volume correlation mechanism allows to catch the moment of large "smart" money entering volumr market. The proposed tic strategy of tick volume analysis is another alternative to short-term trading and the opportunity to earn with the market makers. Financial markets are controlled by golume people who create the main driving force — trading volumes.
The composition of the fotex members, the size and direction of vvolume volume make up the largest market secret. 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 trader is obliged to constantly monitor the dynamics of volume, so that in no case they entered the game against the big players.
Precise strategy of tick volume analysis helps understand market sentiment in time and work with the market billions in the same direction. Due to its decentralization, Forex market is technically unable to give the trader the actual data on the volume. What the trader sees in the Forex terminal is tick volume that shows the number of times the price changed over the period of time. It is believed that tick volume does not make sense for the trader.
Not everyone has access stratsgy data on the real exchange volumes e. In fact, the absolute volume values do not matter: the market does not care whether one strategg entered with a hundred million or a hundred players entered with one million each. Only relative dynamics matters — i. If the activity increases dramatically, it means that the market maker gives pulse to the crowd in a certain direction.
Once there are enough open transactions in this direction, the huge volume rapidly reverses and starts earning on their "attracted" colleagues. The precise strategy on tick volume will allow to work in sync with the big capital, that is, to have time to enter at the beginning of a trend and exit or reverse at the first signs of a reversal movement. Only two standard indicators are required: MFI or Market Facilitation Index and Volume indicator Tick or Real, if possible. The setting is standard, both indicators are of the oscillator type the parameters include only colors and are arranged in additional windows.
This precise strategy assumes that the tick and actual volume equally reflect the market picture. The price change and the strength applied to it number of open transactions are analyzed considering the basic concepts of candlestick analysis. The index of "relief" in the market: MFI indicator Market Facilitation Index Its high histogram bars tell quest ce le forex the weak low resistance to the current price vector, and the combination of this growth with falling volume under the Volume indicator tells about the stability of the "intention" of the market to continue to move in this direction.
It is believed that the beginning of a new trend reversal of the current follows the change in stratevy working volume at the change of the total number of open transactions in the current direction. That is, if the MFI grows with falling volume, the current movement is created by small speculators. Increase in volume and a simultaneous decrease in MFI means a serious foorex, which will soon result in a stratfgy in any direction.
When working with an MFI, you should straategy attention to changes in price and volume, so bars generated by the indicator are of different colors. Green "strong" : appears vopume the simultaneous growth of both dynamics and volume. There is a strong trend in the market direction does not matterthe number of open transactions grows — the bulk goes in one direction. Almost never atrategy as an entry point, simply reflects the presence of a clear direction and allows to control the accuracy of the open positions.
Brown "dying" : profit taking is ongoing without the intention to open in the opposite direction. The trend strength falls with tick volume. This bar is not used to enter, shrategy it often appears at the max of the first Elliott wave. Blue "false" : the existing trend is not supported by new volumes — the big players are trying to "push" the market away from the trend and provoke false price surges, pushing the most nervous players from the market.
Wait and do not react. Ticj forex tick volume strategy : often means the end of the trend, the price slows down despite the growth of the tick volume. The narrow volume of consolidation is formed, then there are two standard options: the continuation of the current trend or reversal. Forex tick volume strategy candle with body bigger than the total amount of shadows is considered to be more reliable.
Important: the candle is considered bullish if its lower tail is bigger than the total size of the body and the upper shadow at the negative closing price. It is better if the candle has a body bigger than the sum of shadows. Important: under the precise strategy, the candle is considered bearish if its upper shadow is bigger than the total size of the body and the lower tail at the positive closing price.
As with any technique based on correlations, the precise strategy on tick volume has a much greater chance of success in the medium- and long-term periods. 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. Stdategy should strive to build their own trading compare forex brokers singapore, but it strateby advisable that at least forex tick volume strategy current earnings accompanied the search for your personal Grail.
Reasonable profit from trading on volume is provided by the fundamental market law: if you want to earn — follow etrategy leader! Forex About the site. Open an account Forex brokers Forex bonuses Forex education Trading advisors Trading strategies Forex indicators Quotations Economic calendar. Write stat: bool true. Always in rorex Trend or a Precise Strategy on Tick Volume. Mathematics of the market volumes. Installation and description of the indicators.
All information is provided for reference and cannot be considered as a recommendation. Forex tick volume strategy administration is not responsible for damages resulting from the use of the information provided. Settlement of transactions in the foorex exchange and vooume markets involves taking concomitant, high risks by the trader. Before you start trading, you need to understand how much you can lose, and in no case change this amount.
Forex tick volume strategy only risk with the funds available to you, and do not use borrowed money in trading.
Tick Charts - A quick look at how they're used.
This forex strategy takes into account second most important data after price itself – volumes. In decentralized forex market we can use only a tick volume.
Proper use of the volume correlation mechanism allows to catch the moment of large smart money entering the market. The proposed precise strategy of tick volume.
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