Intraday trading with FX Volume

As the years progressed, I’ve been asked many, ordinarily, which is the best marker and on the off chance that it is conceivable to exchange the market with only one pointer.

My assessment is that each and every instrument adds a significant piece to the riddle with its particular examination, and you’ll profit by it.

Yet, the more I use FX Volume, the more I think it is conceivable to exchange Forex with only one instrument.

Here is an illustration of Wednesday a week ago of an EURUSD short exchange, and the screen capture was taken at the exchange execution.

As of now, I exchange EURUSD short, GBPUSD short, and we’ll dive into the subtleties of why I brought these exchanges further down underneath.

If we zoom in into the FX Volume analysis views, we see a massive change in the USD long/short positions during the 8 hours of the Asian trading session.

This clarifies the current market dynamic is positive for the USD – so we like to BUY USD and watch for suitable counter currencies.

The best counterparts we found at this moment have been GBP and EUR, which both showed a clear dynamic on the short side.

Why not CAD? Because it’s not dynamic enough.

And what’s the outcome of these two short trades?


EURUSD hit its target, GBPUSD not due to some positive News.

The interesting point is that if we see such a scenario in the underlying REAL MARKET VOLUME provided by FX Volume there are almost ZERO countermoves in such a trade.

So you can trade with tight stops which offer awesome opportunities for the risk-reward ratio.

And things get even better!

With FX Volume 3.23, we added the possibility to combine different views AND comparison periods in just one chart.

So you can create a combined view like this one with an 8 hour long/short volume comparison on top and a 1 hour long/short comparison below.

In this way, you’ll easily see if the short term volume during the last hour (1H) is still dynamic and supporting the volume change of the higher period (8H)

This offers an entirely new grade of precision because you now see exactly when to enter, when to exit and if it’s still worth to hold the position.

But that’s a topic for the next trades and articles next week.

Stay tuned and enjoy the new possibilities!

All the best and happy trading

Daniel

Credit: MQL5: Traders’ Blogs RSS Feed

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