Trading is primarily a successful struggle between you and the other market players. For all your profits will testify about the loss of another trader and the more the percentage of your winners is, the more stably you can earn with the help of exchange speculation.
But you will agree that it is very difficult to find out who is currently trading in the market and what kind of trading operations take place. As a rule, fix api trader receives quotes of the currency pair on the chart window, but he does not think about “who else is behind the price and determines this movement?”. If you ask this question and try to find an answer to it, this will improve the performance of investment activities.
The search for an answer to this question can drive the trader into different angles. That is why today we will analyze the key sources of information for determining the levels of volumes in the foreign exchange fix api forex market.
We will distinguish three such sources:
- Volumes Technical Indicator
- Horizontal volumes
- A glass of prices
Volumes Technical Indicator
This technical indicator is implemented in the form of a histogram and allows traders to learn the dynamics of the trading operations volume on the current financial tool. However, the dynamics itself is not at all informative. You should pay attention only to the minimum level of volumes and to the increased one.
The minimum level indicates a lack of interest of the market players in this financial asset. In turn, this is a signal that any orders placed on the market can collapse or support the price, which will cause increased volatility in the market. In conditions of minimum levels of volumes, trading is not recommended.
The increased level of volumes on the contrary testifies to significant dynamics in the market and activity. If the level of volumes increases, and quotes do not have a clear trend, then we should expect a turning point in the struggle between bulls and bears and only then to enter the market in the direction of traffic. If the volumes increase and the dynamics are presented in a certain direction, then you should also enter in the direction of the formed movement.
It is also worth noting that increased volumes can be caused by fundamental factors and it is necessary to adjust their forecasts and trade operations to this data.
Unlike the Volumes indicator, these volumes indicate the accumulation of orders and trades at a certain level during the trading session. This allows traders to find out exactly where the buy and sell orders can be placed. This approach will allow you to expose your trading operations in more detail in order to enter with a market trend movement. Horizontal volumes can also display exit zones from the transaction, provided that trading operations are open.
A glass of prices
The most informative tool will be a glass of prices, where you can see absolutely all the applications that are delivered to the market. For example, you can find out how much and at what price the EURCAD currency pair is currently being bought and sold on the fix api forex market. This, in turn, will reveal who dominates the current market: bulls or bears. If buying is more intensive, this indicates there is a demand for the asset and accordingly it will cause an increase in the financial tool. If there are more sales on the market, it is a signal to growth of supply over the demand and further price reduction.
Unfortunately, the last option is impossible for the traders who trade through the fix api MT4 trading terminal, due to the cooling of the working glass of prices. Understanding the need to analyze the current positions and volumes for successful fix api trading, we created universal software that allows you to access the depth of the cTrader terminal market and to use this data in the MT4 terminal – http://www.forexzzz.com/product/ctrader-connector-via-fix-api/
MT4 Connector will allow you to increase the level of accuracy of opening transactions based on current market data. This tool is not only suitable for determining the current market orders, but also for stable both algorithmic and manual trading.