Indicator Volumes Buy Sell Indicator for MT4

0
1021
Indicator Volumes Buy Sell Indicator for MT4

Introduction to the Indicator Volumes Buy Sell Indicator

Volume is one of the key factors when trying to identify momentum. This is because price charts only show us the speed at which price moved. It does not show us the volume that goes along with it.

The Indicator Volumes Buy Sell Indicator was developed to help traders objectively identify momentum price movements and confirm the volume that goes along with the momentum.

What is the Indicator Volumes Buy Sell Indicator?

The Indicator Volumes Buy Sell Indicator is a custom technical indicator that indicates momentum based on volume.

This indicator plots two lines that oscillate around a midline which is zero. The green line represents the bullish momentum, while the red line represents the bearish momentum.

Indicator Volumes Buy Sell Indicator for MT4

These two lines tighten near zero whenever price action is moving with low volume and expands away from zero whenever price starts to move with strong momentum.

How the Indicator Volumes Buy Sell Indicator Works?

The Indicator Volumes Buy Sell Indicator has a complex formula within its indicator script which compares the close price and the open price, it also computes for the difference between the high and low of a price candle, and it also incorporates volume within its formula.

It then plots the red and green lines based on these computations. The resulting line plotted by the indicator would be lines that diverge whenever price moves with strong momentum and tightens in the middle whenever price is moving with low volatility.

During spikes, the green line would be above the red line if the candle is bullish. Inversely the red line would be above the green line if the candle is bearish.

How to use the Indicator Volumes Buy Sell Indicator for MT4

The Indicator Volumes Buy Sell Indicator has a fixed algorithm that can not be modified. It does not have any variables that can be tweaked to adjust the sensitivity of the indicator within the indicator’s settings.

This indicator does not provide trade signals. Market spikes with bullish candles do not necessarily mean that price would move in a certain direction. All it does is confirm that price action moved with a lot of volume going along with its momentum. It should not be used as an entry signal. Instead, it can be used as a confirmation that a momentum trade setup has volume to go along with it.

Notice the example scenario below. A momentum candle developed causing the indicator to spike. However, price did not move in the direction of the trend instantly. Instead, it pulled back before starting to trend.

How the Indicator Volumes Buy Sell Indicator Works

In another scenario, notice how price moved down with strong momentum. This also caused the indicator to spike indicating high volume to go along with the strong momentum. However, price did not continue in the direction of the momentum. Instead it reversed immediately after the spike.

How to use the Indicator Volumes Buy Sell Indicator for MT4

Conclusion

The samples above show us that the Indicator Volumes Buy Sell Indicator is not the type of indicator which should be used to identify trade setups. All it does is confirm volume and momentum. This might seem irrelevant but some traders can also make use of this information.

Recommended MT4 Broker

  • Free $50 To Start Trading Instantly! (Withdrawable Profit)
  • Deposit Bonus up to $5,000
  • Unlimited Loyalty Program
  • Award Winning Forex Broker
  • Additional Exclusive Bonuses Throughout The Year

Recommended broker

>> Claim Your $50 Bonus Here <<

(Free MT4 Indicators Download)

Click here below to download:

Indicator Volumes Buy Sell Indicator for MT4

LEAVE A REPLY

Please enter your comment!
Please enter your name here