Using Tick Volume Signals for Intraday Futures and Currency Trades
Summary
The document explains tick volume as a count of deals during an intraday period. Because reported futures trade volume can arrive a day late, tick counts offer a more timely way to observe activity. They do not reveal the number of contracts in each deal, so they are an imperfect proxy for actual traded volume.
It describes an indicator that marks chart patterns with alerts or arrows and gives example threshold settings for five-minute charts in major currencies and gold. The author suggests using signals for entries, including countertrend corrections and possible reversals, while warning traders to be cautious when trading against the prevailing trend. The document says levels depend on the instrument and timeframe, and mentions money management and averaging as part of the proposed approach. Its evidence is limited to claims about historical chart backtesting; it provides no performance statistics or detailed test design, so the examples do not establish that the signals are profitable.
Key ideas
- Tick volume counts deals in a period but does not measure the number of contracts traded.
- It can provide a more timely activity measure when reported futures volume is delayed.
- The indicator can display alerts and arrows based on configured thresholds.
- The suggested signal levels vary by instrument and timeframe.
- Countertrend entries require caution, and the document offers no quantified evidence of profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.