4/23/2021 0 Comments Trading Volume Indicator Mt4
It can be used with any Forex Trading Systems for additional confirmation of trading entries or exits.
Trading Volume Indicator Mt4 How To Control CookiesTo find out more, including how to control cookies, see here.This info allows you to see whether market players back up a prices trend or not.On the currency market, the situation is different but traders can still get insights from volumes. MetaTrader measures the number of ticks during a single period of time. Thus its possible to see how actively the market traded in particular moments. In other words, we dont know whether there were 500 or 500,000 orders within a certain period, but we know how many ticks the price moved. To apply them, click Insert, then Indicators and choose Volumes. Volume bars are painted green if they are bigger than the previous ones and red if volume declines. If the close price of the current candlestick is higher than that of the previous one, the current volume is added to the previous OBV and the line goes up. If the current candlestick close price is lower than of the previous one, the current volume is subtracted from the previous OBV making the indicator go down. Its assumed that OBV changes precede price changes, so it can provide signals. Regard it as a version of RSI that takes into account volumes. The higher the volume, the greater the contribution of the price change (for this period of time) will make to the value of the indicator. So, in an uptrend, volume should increase when the price is moving up and decrease when the price is moving down, while in a downtrend this means increased volume when the price is moving down and decreased volume when the price is moving up. In the final part of the chart, the new high is not confirmed by volume. Volume indicators help to do it sooner and join the new trend as early as possible. Volume was low during the top and even lower at the second shoulder: a confirmation that the market had no more strength to go up. If a breakthrough of a range is accompanied by a spike in volume, theres a higher chance that this is a real and not a false breakout. After all, the dynamics of volume tells us better than anything how active the trading is. This is a unique knowledge which is not really provided by other indicators. As a result, the indicators of volume will surely make a great contribution to your trading system. How effective is this strategy and how does it compare to others. Step by step we will go through this strategy to make it clear for you. By pressing the Accept button, you agree to our Privacy policy.
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