This indicator is not a full replacement for the volume histogram. However, it greatly simplifies the visual perception of information and speeds up trading decisions. The indicator automatically determines your chart background, dark or light, and adjusts the colors for optimal display of volume candles.

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Despite its simplicity, it appeals to the fundamental data, i.e. trading volumes that always have an immense impact on price direction, forming and fading of trends. A green bar implies that large volumes are present in the market. At that, height of the candle corresponding to the green bar is usually small. That is especially the case if large hedge funds close their positions or open new ones. When a green bar appears in the volumes histogram, it signals a possible change in trend direction.

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Therefore, if H1 timeframe is enabled in a terminal, a bar displayed on the Volumes indicator’s chart indicates the number of ticks per hour. MetaTrader 4 and MetaTrader 5 terminals provides a standard volume indicator called “Volumes”, which is mostly used for daytrading. So far, real (futures) volumes MT4 and MT5 indicators can be found only at some small private projects. Forex Volumes Indicator represents a histogram showing the number or the volume of trades made in the Forex market over a certain period of time (usually candlesticks). If you said that this is a bullish trend, then you are right.

Trend Strength MT4 Indicator: Capturing the Momentum of a Trend

So, when using this indicator to spot reversals, treat it more as a warning indicator and not an entry or exit indicator. However, one way to use this indicator that is not so popular is looking for places where a color edges out of the other color. When green edges out red on the high or rise of the indicator, buy. Sell when the red color edges out of the red in a high of the indicator. This indicator can have its accuracy increased by comparing it with other divergence indicators, such as the RSI divergence and Stochastic Divergence indicators. Traders use the OBV indicator to spot areas where the price diverges from the indicator line.

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Another example but this time the down trend (the period marked between the vertical lines) comes with increasing volume. As you can see, after the correction happened, we saw a continuation down. In the first phase on the image below (blue arrows) price is in a down trend, however, volume indicator mt4 the volume is also decreasing. That tells us that this trend is losing momentum and we can expect a reversal soon (which it actually happened afterwards). The built-in mt4 volume indicator is probably one of the most unappreciated free tools that many don’t even know how to use.

How Does the Volume Profile MT4 Indicator Work?

What is the indicator the most effective to trade on the Forex market? In our opinion, the Volume Zone Oscillator (VZO) is the best volume indicator that you can use in your trading analysis. Each indicator uses a slightly different volume oscillator formula, so your goal is to find the best volume indicator that matches your trading style. Below we will describe the most popular Forex volume indicators and explain why Volume Zone Oscillator is the best volume indicator in trading. High volumes of purchases and sales can generate trends and be catalysts for changing the direction of the trend. Volume analysis can help you see these trends before they are visible on the price chart itself.

The Volume profile indicator appears on your chart as a series of horizontal lines that extend to the right once you install it on your MT4. The main idea behind this indicator is to help traders observe potential areas of high price action activity. But that’s not where the usefulness of this indicator ends. The best volume indicators are a gem to have as you make your technical trade analysis in forex.

Now you will learn how to interpret the signals of the VZO indicator. Let’s now define what the Volume Oscillator indicator is and how to correctly interpret the information of this technical tool. Set a smaller or larger calculation period (Bars to count) to analyze only the required period on the chart. This article discusses one of the most sought after technical analysis…

In the vast and ever-evolving landscape of forex trading, mastering the… We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. The difference between the two moving averages is then displayed as a sinusoid line, expressed as a percentage.

• As a result, the market is highly likely to reverse in the VPOC area.
• The Volume Oscillator settings can be adjusted to suit your trading needs.
• You can always discuss Volume Profile with other traders and coders on the indicators forums.

This way, you can easily recognize how high the volume is compared to previous bars. Small volume tells that there are very little participants in the market, neither buyers no sellers have any significant interest in the price. In addition, no financial institutions will be involved, thus a market is going to be moved only by individual traders and so the move will be weak. It is currently one of the best, or rather, the most popular volumes indicator designed for MetaTrader trading terminal.

This is often a sign that a trend is weakening or a reversal is about to appear. Accordingly, the area where the volume is located (relative to the moving average) is labeled as ultra-low, low, average, high, very high, or ultra-high. Vladimir Ribakov (vladimirribakov.com) is a trading name of Vladimir Ribakov (vladimirribakov.com), https://investmentsanalysis.info/ a Education Services Company. Vladimir Ribakov (vladimirribakov.com) does not gain or lose profits based on your trading results and operates as an educational company. Vladimir Ribakov (vladimirribakov.com) is not a Financial Services firm and does not operate as a financial services firm.

We have selected several optimal color solutions and implemented them into the indicator. Momentum is an excellent measurement to identify potential weakness in the… It allows you to customize its settings to suit your preferences without obstructing other pieces of information on the chart. Without further ado, let’s head into why we think these Volume indicators stand out from the rest. False breakout predicted as Volumes were decreasing during the breakout phase.