How to Use Forex Volume Indicators

7/28/2019 How to Use Forex Volume Indicators

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Forex

VolumeIndicators


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One of the main indicators of the market transactions is the Volume of transactions.

The Volume of finished transactions is characterized by an active involvement of participants in the market,

its strength and intensity. Volume increases together with a steady uptrend when the price rises, and,

hereby, decreases when the price falls. The same happens with a downtrend, the volume increases when

the prices fall and decreases as the prices rise. One of the main features of Volume is that it is always a little

ahead of price. In forex market, as a rule, there is no way of showing the direct volume of transactions,

thats why an indicator called "Volume", is constructed, which reflects the number of price changes (ticks)

during one bar. This indicator shows the activity of price changes and it is believed that this activity well

correlates with real volume of transactions.

Forex Volume Indicators


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THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF

CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE

PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND

CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING,

"GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL

AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS

FOR OPENING A RISK-BASED BALANCED POSITIONS.

Acceleration/Deceleration (AC) Oscillator:

Accumulation/Distribution is a volume-based technical analysis indicator designed to reflect

cumulative inflows and outflows of money for an asset by comparing close prices with highs and

lows and weighting the relation by trading volumes.

The Accumulation/Distribution line is used for trend confirmation or possible turning points

identification purposes.

A/D(t) = [((C L) (H C)) / (H L)] x Vol + A/D(t-1),

where:

A/D(t) current Accumulation/Distribution value;A/D(t-1) previous Accumulation/Distribution value;

H current high;

L current low;

C close price;

Vol volume.

To learn more visit : http://www.ifcmarkets.com/en/ntx-indicators/accumulation-distribution

Accumulation/Distribution Indicator
http://www.ifcmarkets.com/en/ntx-indicators/accumulation-distributionhttp://www.ifcmarkets.com/en/ntx-indicators/accumulation-distributionhttp://www.ifcmarkets.com/en/ntx-indicators/accumulation-distributionhttp://www.ifcmarkets.com/en/ntx-indicators/accumulation-distributionhttp://www.ifcmarkets.com/en/ntx-indicators/accumulation-distributionhttp://www.ifcmarkets.com/en/ntx-indicators/accumulation-distribution


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CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING,

"GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL




Money Flow Index (MFI) is a technical indicator developed to estimate money inflow intensity into

a certain asset by comparing price increases and decreases over a given period, but also taking into

consideration trading volumes.

The indicator can be used to identify whether an asset is overbought or oversold, as well as to

determine possible turning points.

1. TP = (H + L + C) / 3;

2. MF = TP*Vol;

3. MR = Sum(MF+) / Sum(MF-);4. MFI = 100 (100 / (1 + MR)),

where:

TP typical price;

H current high;

L current low;

C close price;

To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/money-flow-index

Money Flow Index (MFI) Indicator
http://www.ifcmarkets.com/en/ntx-indicators/money-flow-indexhttp://www.ifcmarkets.com/en/ntx-indicators/money-flow-indexhttp://www.ifcmarkets.com/en/ntx-indicators/money-flow-indexhttp://www.ifcmarkets.com/en/ntx-indicators/money-flow-indexhttp://www.ifcmarkets.com/en/ntx-indicators/money-flow-indexhttp://www.ifcmarkets.com/en/ntx-indicators/money-flow-indexhttp://www.ifcmarkets.com/en/ntx-indicators/money-flow-indexhttp://www.ifcmarkets.com/en/ntx-indicators/money-flow-index


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CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING,"GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL




On-Balance Volume (OBV) is a cumulative volume-based tool intended to show the relation between the amount of

deals and assets price movements.

The On-Balance Volume line is used for trend confirmation or possible turning points identification purposes.

Trend confirmation:

An uptrend in prices is confirmed if the line is rising;

A downtrend in prices is confirmed if the line is falling.Divergence pattern analysis:

Rising OBV line along with decreasing prices indicates the downtrend may be weakening to a bullish reversal;

Falling OBV along with rising prices indicates the uptrend may be weakening to a bearish reversal.

OBV(t) = OBV(t-1) + Vol, if C(t) > C(t-1);

OBV(t) = OBV(t-1) Vol, if C(t) < C(t-1);

OBV(t) = OBV(t-1), if C(t) = C(t-1),where:

t current period;

t-1 previous period;

C close price;

Vol volume.To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumes

On-Balance Volume (OBV) Index Indicator
http://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumeshttp://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumeshttp://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumeshttp://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumeshttp://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumeshttp://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumeshttp://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumeshttp://www.ifcmarkets.com/en/ntx-indicators/on-balance-volumes


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CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING,"GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL




Volume is a technical analysis tool, which reflects trading activity of investors for a given time period.

Usage

The indicator is generally used together with price analysis to confirm trend strength or highlight its weakness and

therefore identify possible upcoming reversals.

Trend confirmation:

Rising trading volumes during an uptrend confirms bullish mood;Rising trading volumes during a downtrend confirms bearish mood.

Trend weakness:

If volumes are falling while prices are increasing, that may be a sign of uptrend weakness, as demand for the asset

may cease at higher prices.

Volume = total value/number of transactions during a given period.

To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/volumes

Forex Volumes
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THANKS FOR ATTENTION

BEST REGARDS,

IFC MARKETS

How to Use Forex Volume Indicators

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