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Talking Points:

  • The FX market is decentralized, meaning there is no market-wide volume measures
  • However, the FXCM Real Volume and Transaction indicators give a good measure of speculative activity
  • We can use volume as both an overview analysis technique and as an individual trade filter

See volume behind the majors during the NFPs and ECB rate decision to gauge your trading approach using the free FXCM Real Volume and Transactions indicators.

Some believe that most technical indicators are similar in that they are derived from the same thing: price. Volume, however, is a unique and separate appraisal of the market that can meaningfully improve our analysis of the market or individual trade opportunities. With the Real Volume indicator, we can bring volume analysis to our FX trading. In today's strategy video, we discuss how this information can be used to give us greater insight into broader market conditions as well as shape more distinct trade setups - with a reference to risk trends, the S&P 500, EURUSD, GBPUSD, USDJPY and others.

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