The volume indicator is crucial in Forex trading as it provides insight into supply and demand. However, Spot Forex doesn’t have a central exchange, making it harder to access accurate volume data. To overcome this problem, one can also look at Futures Forex and compare the volume patterns between the two markets, with the Futures market offering more reliable volume data. Trading with professional money, indicated by large volume spikes, is preferred.
Why Volume is More Important Than Price Action in Forex Trading
Introduction: The Flaw in Spot Forex Trading
Body:
Spot Forex Trading and the Problem with Volume
The Importance of Volume in Trading
The Workaround: Looking at the Futures Market
Volume Patterns in the Futures Market vs. Spot Forex market
Why Trading Futures Market May Be Preferable
Trading with Professional Money
Conclusion: The Benefits of Focusing on Volume in Forex Trading