Henry T_ Taylor#27
What is volume analysis in forex and why is it challenging?
Volume reveals participation levels, confirming or rejecting price moves. In equities, volume data is transparent, but in decentralized forex, true volume is unavailable—brokers provide tick volume as proxies. Institutions access order flow and liquidity data, giving them an edge. Retail traders use tick volume or futures data (CME FX) to approximate. Benefits: confirmation of trends and reversals. Risks: misleading signals due to lack of centralized data. Despite limitations, volume remains valuable—markets with higher participation validate moves, while weak volume warns of false breakouts.
2 месяца до
0 0