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How to USe Forex Volume Indicators.pptx

Published Jun 17, 2013 in Business & Management
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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.

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Presentation Slides & Transcript

Presentation Slides & Transcript

Forex Volume Indicators

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, that’s 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.




















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

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







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:

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












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:

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




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:

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




THANKS FOR ATTENTION
BEST REGARDS,
IFC MARKETS