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| AskBidVolumes data clarification http://www.dukascopy.com/swiss/english/forex/jforex/forum/viewtopic.php?f=200&t=58747 |
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| Author: | fprophet [ Fri 05 Apr, 2024, 01:05 ] |
| Post subject: | AskBidVolumes data clarification |
I'm confused about the meaning of the data returned by the BidAskVolumes indicator. I assume Total Volume (Ask+Bid) is the total Volume of settled positions. But what is Bearish Volume (Bid>Ask) & Bullish Volume (Ask>Bid) data actually referring to? With JForex4 ver 4.3.1 we now have the Cumulative Volume Delta (CVD) indicator - which refers to this same data as simply Bid>Ask & Ask>Bid. Is this data telling me about the "Open Interest" i.e. the unsettled 'sentiment'? or is it telling me that in some periods there was more Long positions settled than Short positions (=Bullish Volume) or more Short positions settled than Long positions (=Bearish Volume)? However I thought for every seller there has to be a buyer & for every buyer there has to be a seller ... but maybe the Liquidity Providers (and/or Market Makers) upset this notion. What am I missing here please ?? I've also noticed that Candle.getVolume(); gives data that I cannot reconcile to any of the data provide by AskBidVolumes or CVD for the same Candle. |
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| Author: | Platform Support [ Wed 10 Apr, 2024, 07:28 ] |
| Post subject: | Re: AskBidVolumes data clarification |
The volume shown in JForex is NOT the traded volume!!! We do not show the Last prices, nor the traded volume. We show the volume on the Best Bid side and volume on the Best Ask side, which are only the total volumes of the orders at these prices in fact. "Open interest" term cannot be used in Forex or CFDs, which are OTC markets. Open interest can be used in futures and options market, which are exchange traded. Therefore it is incorrect (in my opinion) to treat a bigger volume on the ASK side rather than on the BID side as a bullish signal. I personally think this is rather a bearish signal (larger volume on the sell side). The logic of ASKBIDVOLUMES indicator is a classic approach, which should be used in the charts, where traded volumes are shown. |
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