Profile picture
, 8 tweets, 3 min read
My Authors
Read all threads
Why Volume Matters when Trading FX?
There is a myth out there that suggests that volume in fx markets does not exist and furthermore if it did, it cannot be calculated. The reason for this explanation is as below:

#forex #fx #forextrader #forexmoney
independentinvestor.com/forex/how-curr… Image
Stocks and Futures are traded on a centralized exchange, therefore each trade that goes through is recorded and therefore is readily available, making it very easy for a trader to view the volumes on any given day.

independentinvestor.com/forex/strategi…
In fx however, there is no actual centralized exchange, rather fx is traded through an inter bank system, thus making it very difficult to see what the volume is and where it may be coming from.
What people do not tell you is that, put very simply, volume can give you an edge, and an edge is what you need when trading against the professionals.
In fact without going into much detail, it can be proven that through the study of some useful charts, it can be clearly shown that there is a correlation between tick volume, used in the fx spot markets versus actual traded volume in the fx futures markets.
FX markets are trending ones, which means the probability of a market continuing in a certain direction are higher than those of ranging markets. This means if you apply certain indicators in conjunction with high volume, you increase your chances of trading with the flow.
There are plenty of volume oscillators to choose from and there are many articles that cover the topic online. Always bear in mind the time of day you are trading. The simple rule has always been that the highest volume occurs on the open and close of most major markets
@threadreaderapp unroll
Missing some Tweet in this thread? You can try to force a refresh.

Keep Current with Independent Investor

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Related hashtags

#forex #fx #forextrader #forexmoney

More from @ininvestor see all

Profile picture
Independent Investor
@ininvestor
Psychological Tips on Forex Trading
Do you want to be a better forex trader; get a better forex broker? If you want to earn more as a trader, you should take note of the following tips to be psychologically poised and ready to take on the currency market:

independentinvestor.com/brokers/fx Image
1. Take note of the past trends. If you know the history of the market, you can make better decisions and predict what the future will possibly be like.
2. Don’t be controlled by your tools. Although the Forex robot and advisers are helpful, don’t let them make the decisions for you. Look for other sources of information before you decide.
Read 10 tweets
Profile picture
Independent Investor
@ininvestor
Share trading involves buying shares (stocks) of publicly traded companies and the hope the price would go up and you make profit.
But if you're new to investing, it's not as easy as it sounds.
Let's see some of the examples.
#invest #trading #shares
independentinvestor.com/share-dealing/… Image
1. Good deal. In 2006 Google bought YouTube for $1.65 billion, fast forward to 2020 and taking into account that YT makes up about 10% of Alphabet Inc revenue, it would be worth around $100 billion now. That's staggering 6,000% ROI in just 14 years.
#alphabet #goodinvestment #ROI
2. Bad deal. On the other hand, in 2013, Yahoo acquired Tumblr for $1.1 billion, fast forward just 6 years, and in 2019, yahoo sold it to Automattic for $3 million.
Whether you buy a company or just shares, it's important to do your research.
#StockMarket
distractify.com/p/memes-tumblr…
Read 5 tweets
Profile picture
Independent Investor
@ininvestor
Financial spread betting is a saturated market and the competition among brokers is fierce, giving a great opportunity for spread bettors to shop around.
In this thread we look into providers and how to find a good deal.
#spreadbetting #brokers
independentinvestor.com/brokers/spread… Image
1. Range of Markets. Some brokers will offer over 10k different financial markets to choose from so make sure your chosen provider offers the markets you want to trade. Some accounts will offer a wide range of shares to trade whereas others might offer more fx pairs.
#forex #fx
2. Trading Platform. Most of the time spread betting comparison websites will list platforms offered by each broker, so at a glance you can select a provider who offers you the trading platform you're most comfortable with.
Read 5 tweets

Embed code for your website

×
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!