As we’ve previously discussed, volume is the ultimate indicator.
It increases exponentially our potential for trading success, our confidence, and our analysis of risk on each and every trade.
Without it, trading is a lottery. With it, you potentially have the winning ticket.
Just as with every other indicator, the Volume tool works across all the time frames from intraday time and tick based charts for scalping strategies, to longer term daily and weekly charts for trend traders.
The Hawkeye Volume Indicator also adapts to work in all markets — from Forex to index futures, from stocks and ETFs to options.
Today in our Back to Basics series with Hawkeye, we’re going to talk volume trading with Forex.
While volume trading with Forex presents us with some unique challenges, these mountains quickly become mole hills when you’ve got Hawkeye in your corner.
The Forex Volume Problem
Unfortunately, Forex volume cannot be measured as precisely as it is for equities, where every share traded equates to one on the volume bar.
So, selling 200 shares means 200 in selling volume. In stocks, the number of shares traded is managed and reported by the central exchanges, such as the New York Stock Exchange.
There are many exchanges around the world that keep track of every share bought and sold, so it is relatively easy to get a precise measure of share volumes being traded on a minute by minute basis. The same is true in the futures markets.
However, in the spot Forex market, there is no central exchange. So we cannot count how many contracts or the size of contracts traded at any given time.
Therefore, to count volume in Forex, it is the number of ticks, or changes in price, which is used, and from which we derive our volume.
One tick measures one price change. As a tick moves up and down volume rises. When volume rises, it signals market activity with participants actively buying and selling currencies. So, from this analysis we can get a relative measure of volume using tick data — but how do we know if it’s buying or selling volume?
Hey, we fixed that for you…
This is where Hawkeye is unique. It uses complicated mathematical algorithms to establish (with an 80%+ accuracy) whether the tick volume is buying or selling volume.
So now, for the first time, Forex traders have the most important of all indicators available to them: VOLUME.
The combination of the volume, volume spread analysis and trend indicators in Hawkeye make it the most accurate software tool available for Forex traders.
We can trade with confidence, knowing that we are trading with the trend and the money flow, rather than against it.
The Hawkeye Volume indicator gives us our own unique radar system to safely navigate the Forex markets.
Is it any wonder that professional Forex traders use Hawkeye?
Click here now to learn more about Hawkeye and become the precise, profitable Forex trader you deserve to be today!