What is your favourite indicator?

Think about it like this:

Real volume (not tick volume) shows where people are actively dealing and matching trades, thus, increased volume at given prices levels will you a hint where more interested parties are willing to deal / trade. Price discovery happens when price moves away from one area of trading interest until it finds another where people are interested in trading. Thus, we will observe that most moves start and end on increased volume:

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You can google VWAP or search it on investopedia to understand why it's important. :D
 
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JimFX said:
What Volume indicator is the best for MT4 platform?
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Mt4 does not incorporate actual volume indicator and the volume displayed by MT4 is not related to the actual volumes markets have.

My advice would be checking volume in futures markets, not with Mt4. Also, not CFDs on futures, but actual futures exchanges.

For instance, you can check futures on any currency or commodity just to mention a few. And for stocks, just go and find the actual data of your choosen exchange.
 
gon said:
Mt4 does not incorporate actual volume indicator and the volume displayed by MT4 is not related to the actual volumes markets have.

My advice would be checking volume in futures markets, not with Mt4. Also, not CFDs on futures, but actual futures exchanges.

For instance, you can check futures on any currency or commodity just to mention a few. And for stocks, just go and find the actual data of your choosen exchange.
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If you use futures volume I guess you should trade on futures market as well otherwise volumes data from futures will be not so relevant for CFDs. Also you should take into account interplay of futures and other markets where underlying asset is the same.
 
ullrich said:
If you use futures volume I guess you should trade on futures market as well otherwise volumes data from futures will be not so relevant for CFDs. Also you should take into account interplay of futures and other markets where underlying asset is the same.
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The thing is that CFDs have zero effect on the underlying market, so no matter the volume traded of CFDs, it will have no impact on that market.

What I mean is that tracking the CFD volume is useless, because it has no relationship with the actual market volume and, therefore, you cannot use volume to make decisions unless you know what volume is being traded in the real market.

That is why I was suggesting checking futures markets, since everyone that is actually moving markets trade futures. CFDs are just a game imo.

I do not track volume, but whoever is interested in researching it, my best guess would be the futures markets.

Just as a sidenote, I have run multiple statistical analysis on CFDs tick volume and price direction finding 0 relationship, using both lineal methodologies such as logistic regression and principal-component analysis, as well as non-lineal approaches such as decision trees like random forest, support vector machines, neural networks of different kinds, etc....
 
I find that FXCM's volume data resembles CME futures very well during US trading hours, and is perhaps superior in some ways, as it takes volume data from trading on other exchanges throughout the world.
 
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