Do Tick Volumes Work in Forex?

On the other hand, quality tick data can be really expensive. Free Trial Log In. IB provides snap shots of the trade data several times a second with an aggregate of the trades that took place during that interval. The steps for re-building your cache are explained in Tip 2 here. Trust us, you would be much better off buying that Tesla Model S you always wanted with that money. It is the first volume-based strategy I've ever seen,-my congratulations!

Tick volume provides traders with this detailed breakdown of the trading activity at a given level. Tick volume is critical for futures traders, because it is used to assess pivot points, since tick volume is not available for the futures markets.

Using Tick Volume in Forex : A Clear NVO Based Example

Also most indicator signals do not get any improvements from the use of an NVO since their signals represent the conjunction of complex calculations done over price through significant periods of time. In the end if you want to design a system using an NVO you should plan this from the beginning, adding such a filter as an after thought is NOT going to work in the large majority of cases. After a few weeks of hard work and development using normalized volume oscillators I can say that I have developed at least a couple of strategies that show long term profitable results on a basket of currency pairs.

However we will see in time if such strategies are in fact able to avoid broker dependency due to the NVO implementation and therefore succeed in the long term. Tomorrow I will be releasing a few videos in Asirikuy dealing with volume as well as the actual logic and coding implementation of the above mentioned NVO strategy.

As always if you would like to learn more about automated trading and gain a true education in the development and understanding of these trading systems please consider joining Asirikuy.

I hope you enjoyed this article! August 21, at 2: It is the first volume-based strategy I've ever seen,-my congratulations! I've put attention that half of the trades I don't know if they correspond to half of the time , from trade 1 to , the EA didn't achieve meaningful results. Most of the profits came from trades to As far as I understand from the equity curve, one would wait for a very long while to new equity high appearance,-is this the case?

They were buying the dips and shorting the rallies. Similarly, looking out for low value bars allows you to identify what the Amateurs are doing. The 2, tick chart above is exactly the same as the previous chart but with some of the low value bars highlighted. These show small average trade sizes or Amateurs. As you can see, you want to fade i. They were shorting the dips and buying late into the rallies. With say a 3 minute chart the entry on close would have got you in closer to — or 5 points worse off!

I would be profitable for 2 months and then boom, volatility spikes up and all of sudden, my trading is not good. Switching to tick and tick has completely masked the volatility differences and allows me to trade more consistently regardless of the volatility.

In the example above, the Better Sine Wave , my preferred cycle analysis tool, was able to pick out a Pull Back long entry point in the 2, tick chart. However, with the 3 minute chart the Pull Back was completely missed. Lastly, a tick chart compresses low activity periods, like lunch time and after-hours. Or fewer false break-out trades during lunch time.

You can read more about the CME and tick chart changes here. The CME introduced a new data feed protocol in December and all data feed providers have to implement it by October You can read more about the details in this forum thread and this blog post.

The result is that the average Emini trade size has increased by a factor of approx. All the data providers, except eSignal, seem to have adopted un-bundled data and there appears to be almost no difference between pre- and post-MDP 3. Forex tick volume can be read as an accurate indicator of institutional or Smart Money strength 3. Huzefa Hamid is the co-founder of TheForexRoom. Huzefa Hamid For a currency to be traded and for its price to move from one level to another, volume is required.

Why is volume important to understand? Is Forex volume reliable? So the question is: How do we go about tying in volume with price action?

1. Tick Charts allow you to follow the Professionals

But also, the correlation between tick volume and actual volume traded is incredibly high. In , Caspar Marney, head of Marney Capital and ex-UBS and HSBC trader, conducted an analysis of actual volume and tick volume in Forex. Tick volumes in Forex have sparked much debate among trading communities on what information they provide, and how they compare to regular volumes. In this article we will see whether tick volumes can be reliably used in Forex. A week or so ago I wrote a post about tick volume in forex and how I believed it could be used for the development of long term profitable strategies. Inspired by a currency trader magazine article, I decided to explore this issue even further to discover if I was capable of coming up with some 10 year volume-based profitable strategies.


If there’re large amount of bid/ask, the movement is fast, therefore the activity is high, and so is the tick volume. That leads us to conclusion, the tick volume we are seeing is actually proportional to the real volume; in a simple word, when the real exchange volume is high, the tick volume offered by broker will be high as well proportionally. Quite often, I get requests from Forex traders to implement this or that indicator or expert advisor that applies tick volume to analyze or trade currency pair. Tick volume that is present in every MetaTrader platform is based on the number of price updates (ticks) that come during the formation of a given bar. Apr 27,  · The difference in the Buyers and Sellers (tick) volume, in the example screenshot in Post 1, is just 14, and the percentage of difference is just %.I may give it a try to automate this strategy, and test it with real ticks.

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