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Is Volume Really That Useful for Forex Majors?
Been thinking a lot lately about how much emphasis people place on volume analysis, especially in equity markets. For Forex, with it being so decentralized and no single exchange recording all transactions, are we really getting a complete enough picture to make volume truly actionable for pairs like $EURUSD or even $NZDCAD? I see some platforms offering 'volume' indicators, but it always feels a bit like looking through a keyhole, given the OTC nature.
Compared to price action and structure, which is universal and clear, the volume data just seems...incomplete. For me, it's hard to justify giving it significant weight in my trading decisions when the underlying data source is so fragmented. Change my mind. What am I missing here?
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It's a fair point. We're essentially looking at a puddle and inferring the size of the ocean when it comes to forex volume, aren't we? Always makes me chuckle when I see someone drawing definitive conclusions from it.