On May 17th 2011 the experts of held another free webinar. This time the topic was “The role of market volume in trading Forex and other markets”. The webinars arranged by are getting more and more popular with beginning and professional traders and investors.
Before proceeding to the detailed overview of the topic, special guests explained in detail the notion of market volume, its types, differences between them and some other aspects. Then the audience found out about the principles of using market volume as a tech analysis tool. The mentioned webinar is the sequel to another webinar called “Forex: the classics’ mistakes and the secrets of mid-term trading”.
It should be noted that thanks to the speakers’ professionalism and the audience’s desire to listen and learn, the participants was able to communicate online, asking questions and giving explanations. The webinar turned out to be “alive”. Here is the list of special guests:
· Ivan (Dr.Key), the head of the Department of Market Sentiment Analysis of
· Maxim (Santyago) , the head of the Department of Volume Analysis
· Vera, the representative of ICM Brokers
· Andrei, the presenter
They managed to give a detailed overview of the following sub-topics:
· A trader’s path: stages, goals and tasks
· Money Management as the main secret of success
· 3 cornerstones of any successful trading system: trend, levels, MM
· ВСА;
· Reading the market line;
· Answers to the audience’s questions.
One of the peculiarities of these webinars is an opportunity to download the file (the video record of the webinar) at the forum of . It is especially valuable for those who for some reason missed the previous webinars.
Before calling on the special guests the presenter introduced the audience to the classic approaches to trading volume with the help of various visual aids. For example, he mentioned Bill Williams’ approach: the classic of trading uses it as an extra tool to confirm a certain supposition.
Ivan (Dr. key), the head of the Department of Market Sentiment Analysis of , was the 1st special guest to share his knowledge with the audience. He took into account the fact that there were many newcomers at the webinar, so he tried to provide the information in them most convenient and simple way possible. In particular, he noticed that trading volume is very important but at the same time it is secondary to market price, which is the primary tool.
Ivan told the audience how to search for suitable trends, focusing on the peculiarities of support/resistance levels as the key factors in trading. Moreover, the audience found out about where to enter and close a trade basing on trading volume, price behavior and trend basics. Of course, everything he said was attended with visual aids.
As always, after the speech made by Maxim the presenter called on Vera, the representative of ICM Brokers. She answered the most discussed question at the Academy’s forum: what quotation sources various brokers use?
According to Vera, there are 2 ways to obtain quotation:
1. Brokers use their own liquidity to provide their clients with quotes. The drawback for traders is that during the times of high volatility the spread can be significantly increased.
2. Broker use external sources of liquidity (ICM Brokers is one of such brokers) like clearing banks, which are not always the ultimate sources (i.e. they may obtain quotation from larger banks). The ultimate sources are usually the world’s biggest market-maker banks.
Vera underlined that “the spread depends on quotes”. ICM Brokers provide their clients with the same quotes it gets from the source plus a commission fee (in this case there are no spreads).
Maxim added that “it is better to choose a broker that charges its clients with commission fees instead of spreads”. Numerous dealing centers provide quotation with a standard 2-point price markup, thus giving a worse price.
As for trading volume, Maxim drew the audience’s attention to the fact that there are 3 axioms that serve as the basis of all the trading methods involving trading volume.
1. Any marketplace is moved by big money
2. Big money comes together with major market participants (the so-called operators)
3. Major market players always implement their interests, which can be traced with the help of trading volume. That is why Maxim sees trading volume as the main trading tool, as opposed to Ivan. It is trading volume that helps to determine the direction of the current financial flows and the major players’ trading logic.
Maxim also answered all the questions asked by the audience, including questions from beginners.
If you want attend the next webinar feel free to visit ’s forum topic “Free webinars for beginning traders” and register for it.
