Buy Sell Volume Indicator for MT5

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Buy Sell Volume Indicator for MT5

Introduction to the Buy Sell Volume Indicator

Volume is one of the most important information that seasoned traders take note of. This is because trade signals with high volume tend to indicate that the trade signal has strong momentum. The Buy Sell Volume Indicator is a trading tool which is based on the concept of using volume to identify strong momentum.

What is the Buy Sell Volume Indicator?

The Buy Sell Volume Indicator is a momentum technical indicator which uses volume as its basis for identifying momentum direction.

This indicator is an oscillator type of indicator which plots histogram bars. The bars that this indicator plots oscillate around its midline which is zero. It plots lime green bars to indicate a strong buy trade volume and sandy brown bars to indicate a strong sell trade volume. It also plots a lime green dotted line connecting the highs of the positive bars and a sandy brown dotted line connecting the lows of the negative bars. This creates a channel like structure enveloping the histogram bars.

Buy Sell Volume Indicator for MT5

How the Buy Sell Volume Indicator Works?

The Buy Sell Volume Indicator attempts to isolate the buy trade volume from the sell trade volume. It does this either by using the “Real Volume” or “Tick Volume” depending on what is available from the broker price feed, although the Real Volume is more reliable. It then smoothens the volume data using a moving average. It then compares which has more volume between the buy volume or the sell volume. It plots positive bars if the buy volume is higher than the sell volume. Inversely, it plots negative bars if the sell volume is higher than the buy volume.

How to use the Buy Sell Volume Indicator for MT5

The Buy Sell Volume has several variables and parameters which can be modified within its settings.

How to use the Buy Sell Volume Indicator for MT5

“Timeframe” allows users to choose which timeframe the volume is based on.

“Smoothing period” modifies the number of periods used to calculate for the smoothing of the volume data.

“Smoothing me” allows users to choose the moving average method used for the smoothing.

“Volume to use” allows users to choose between Real Volume and Tick Volume.

The other options toggle the alert signals and Email push notifications on and off.

Buy Trade Setup

When to Enter?

Open a buy order if the bars shift to positive with high volume in confluence with other bullish technical indications.

When to Exit?

Close the trade if the bars shift to negative.

How to use the Buy Sell Volume Indicator for MT5 - Buy Trade

Sell Trade Setup

When to Enter?

Open a sell order if the bars shift to negative with high volume in confluence with other bearish technical indications.

When to Exit?

Close the trade if the bars shift to positive.

How to use the Buy Sell Volume Indicator for MT5 - Sell Trade

Conclusion

This indicator can be a very useful momentum indicator especially when used in confluence with other technical indications as part of a complete trading strategy. However, it tends to be susceptible to false signals whenever the market is choppy and is not showing a clear momentum direction. As such, it is best to wait for momentum reversal signals that are in confluence with a momentum candle.

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Buy Sell Volume Indicator for MT5

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