VWAP and Futures volume in Forex market

I know that we can´t use VWAP in forex because VWAP represents the total value of shares traded in a particular stock on a given day, divided by the total volume of shares traded in that stock on that day. We can´t do this in forex. POC levels and volume too.

(Maby in a Levels 2 environment.) But, and if we use the futures VWAP, POC and Volume in our forex charts ? Would that work? This is what I'm doing here.I have a friend im my skype that teach me this. I don´t trade live, im just learning. I will place some pictures here every day for us to compare if this really work. I will use Thinkorswim platform (they are free and have true CME volume for futures market) and MT4 platform with a very nice indicator that place end of day futures market data in MT4 platform.

I do not have answers to everything, like i said im learning this too. But we can learn together. And if this work, it will be a very good edge.

First picture with eurusd h1. This is last week 26/09/2011 to 30/09/2011 , but based in a week before volume (19/09/2011 to 25/09/2011).

Look how many time price bounces in these levels, they mark points of possible reversal for futures market. And seems that actually works very well for forex too.

Indicators and server can be found here http://fxcoder.ru/indicators/rvl

http://i51.tinypic.com/1678cgn.gif

Second eurusd chart, same idea. The week before volume applied to last week, but in futures.

http://i54.tinypic.com/52dr0m.png

This is the 6B futures chart volume applied to he gbpusd forex spot market. Almost exactly the same prices. We can see a spike in volume on 6B and in same time gbpusd felt too.

 

http://i51.tinypic.com/j8iln5.png

Hey Volumetrader,

Depending on what you're going to use VWAP for? I don't have that much experience with VWAP for forex but if using it as a Support/Res level you may need to review this for awhile and compare as you are doing now. Or you can use VWAP to set the bias for the day (bearish/bullish) if your intraday. Ex. current VWAP below yesterday VWAP and price is below current VWAP your bias is to the short side and vise versa for longs. But if current VWAP is below yesterday VWAP but price is trading above current VWAP expect a ranging market.

 

NT

Edited October 4, 2011 by ninjatrader

http://i52.tinypic.com/t4ztih.gif

Hi ninjatrader. I have not talked how i use the VWAP because we are still at the beginning of the thread. I was only making comparisons of markets to make sure that this method can be really applied. (you've accelerated the process)

But you are right, VWAP can be thought of as the market's evolving estimate of value. In a weak trending or non-trending market, we will tend to move away from VWAP to probe trader/investor interest. If that interest is lacking, we will tend to gravitate back toward that VWAP value level. I only trade bounces in our last day max volume, always following the vwap direction.

Hy volumetrader!!

 

I like this idea very much, and thoose s/r lines looks very useful!!

I am talkin about mt4 /unfortunetly tos is not aviable in my country/ But i can see only daily data on my chart. what stettings do you use, from where come last week lines?

one more question: is there any method to see real-time the volumes not just yesterday data?

 

thank you so much!

Keep this thread alive, i think this is a profitable way to trade.

 

Andre

Think or Swim is unavailable to me as well :-(

Hy volumetrader!!

 

I like this idea very much, and thoose s/r lines looks very useful!!

I am talkin about mt4 /unfortunetly tos is not aviable in my country/ But i can see only daily data on my chart. what stettings do you use, from where come last week lines?

one more question: is there any method to see real-time the volumes not just yesterday data?

 

 

thank you so much!

Keep this thread alive, i think this is a profitable way to trade.

 

Andre

Hi andre. To use weekly you need to change the configuration in the indicator properties.

Range mode=5

HGposition=0

To choose any day you want do this...

Range mode=0

HGposition=2

Whm you do this will appear two vertical lines ,one blue and another red. Double click, and you can drag them and choose how many days you wanna see of volume.

The blue line must be in beginning and the red in the last data downloaded.

+RVL dont have live data.

We only have real volume data using TOS platform.

Think or Swim is unavailable to me as well :-(

Hi trader 99. Don't worry. I Think +RVL very good alone. And i will prove. Peace.

This is the usdchf chart. We have a great ammout of bounces on our last day max volume. Trading above last day and last week vwpa.

And remember, this is futures data working very well for forex. And just using yesterday data with +rvl.

 

http://i56.tinypic.com/33mc5j9.gif

Thank you the fast answer!

Now i have almost the same chart like you, i have the mode lines, but the color ones: vwap and medium volume not longer then the matching bar on the left side, do you draw it yourself?

Thank you the fast answer!

Now i have almost the same chart like you, i have the mode lines, but the color ones: vwap and medium volume not longer then the matching bar on the left side, do you draw it yourself?

 

No, sometimes its because you are using a diferent range to see volume.

Hi Volume Trader,

 

I can't read Russian. Could you please send me a detailed tutorial document about RVL software?

 

Thanks so much

Hey Kenjiho....use Google translator and it will do the work for you :-)

 

I cant read Russian either.

It has been a PAIN to set that RVL up! GRRRRR.. Can any of you PM me your skype and help me out on teamviewer, I went through ALL of the trouble shooting but still can't get it. Everything is a friggin hassle with Windows 7. I get BSODs every week. Thanks.