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.
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.
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.
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.
MT4 Indicators – Download Instructions
Indicator Volumes Buy Sell Indicator for MT4 is a Metatrader 4 (MT4) indicator and the essence of this technical indicator is to transform the accumulated history data.
Indicator Volumes Buy Sell Indicator for MT4 provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly. Click here for MT4 Strategies
Recommended Forex Metatrader 4 Trading Platform
- Free $50 To Start Trading Instantly
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Awards Winning Trading Broker
How to install Indicator Volumes Buy Sell Indicator for MT4.mq4?
- Download Indicator Volumes Buy Sell Indicator for MT4.mq4
- Copy Indicator Volumes Buy Sell Indicator for MT4.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader 4 Client
- Select Chart and Timeframe where you want to test your MT4 indicators
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader 4 Client
- Right click on Indicator Volumes Buy Sell Indicator for MT4.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Indicator Volumes Buy Sell Indicator for MT4.mq4 is available on your Chart
How to remove Indicator Volumes Buy Sell Indicator for MT4.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader 4 Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Indicator Volumes Buy Sell Indicator for MT4 (Free Download)
Click here below to download: