Why Volatility: Probability Matter Within Forex Trading

Expert: Mark Whistler, Founder at WallStreetRockStar.com
Summary:
During this final portion of the first half of the monthly Webinar, traders will see why and how volatility matters- especially for intraday trading. Have you ever wished you had an indicator that would show when trending is about to begin and when trending has ended? What's more, with the information from Whistler's discussion on volatility and probability, traders will begin to see how by using a few simple commonplace indicators – differently than shown almost anywhere else within global educational Forex channels – can make all the difference in the world in being able to spot volatility ahead of the crowd.

Webinar presented by WallStreetRockStar.com and FXstreet.com

Comments

[p.a.]

hi mark,

to clarify a few things here.

re: vwap - i don't think a judgement can be made as to the actual vwap for the day from a retail broker's volume printout.

why?

first of all, retail fx brokers do not print out actual volume in terms of lots bought/sold, they print out the tick count (the number of times a price changed). if the price changed, that means that either the buyers or the sellers were exhausted at the given price and that's all. it does not say anything whatsoever about the actual volume that was involved - it could be a million dollars or the proverbial one buck that broke the balance. as a point in case, consider a 100-pip price gap - gaps are usually a sign of very high volume, yet it's still just one tick.

second, even if brokers did print out the actual volume that occured there, it would be broker-local volume. i don't think traders at retail fx brokers move the fx market, therefore you cannot infer the actual, or even a meaningful, vwap for the day from that volume as it is representative of retail and not of institutional order flow.

so if you want to measure intrabar volatility in terms of frequency, tick volume's fine. if you want to spot institutional buying and selling, tick volume's useless. imnsho.

now whether i'm just trying to be right or i'm pointing out a relevant issue i leave up to you. you are right though that this was not a vwap webinar so my questions were not strictly on topic.

regards,
p.a.

[p.a.]

>so if you want to measure intrabar
>volatility in terms of frequency, tick
>volume's fine. if you want to spot
>institutional buying and selling, tick
>volume's useless. imnsho.

ironically, i just found that that is not so:) (but no it's not vwap:)

so thanks for getting me to look at it:)

regards,
p.a.

[curt]

p.a:
Your last comment was a little unclear to me. what did you find that it's not so?
From what i'm reading it sounds like you're saying you can spot institutional transactions using tick volume, but vwap isn't what institutions use?