Identify a bearish momentum type of trade setup. Set the stop loss above the entry candle. Set the take profit on the next support level based on a major swing low level and allow price to reach the target. This indicator does not provide trend or momentum reversal signals or even trend biases. However, it provides information regarding the strength of the market movement.

This indicator can serve as a confirmation of a momentum type of trade setup. MT4 Indicators — Download Instructions Trading Volume Indicator for MT4 is a Metatrader 4 MT4 indicator and the essence of this technical indicator is to transform the accumulated history data.

Trading Volume 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. Click Here for Step-By-Step XM Broker Account Opening Guide. Download Now. Save my name, email, and website in this browser for the next time I comment.

Sign in. your username. your password. Forgot your password? Get help. Password recovery. your email. Home Forex MT4 Indicators Trading Volume Indicator for MT4. Forex MT4 Indicators. Table of Contents 1 Introduction to the Trading Volume Indicator 2 What is the Trading Volume Indicator? RELATED ARTICLES MORE FROM AUTHOR. Trend Reversal Synergy Forex Trading Strategy. Trend Signal Version 2 Indicator for MT4. RSI Filter Indicator for MT4.

Doji Arrows Indicator for MT4. MTF Zigzag with Three Level Indicator for MT4. KAMA Indicator for MT4. LEAVE A REPLY Cancel reply. Please enter your comment! Please enter your name here. You have entered an incorrect email address! Top Download MT4 Indicators List. Infoboard Indicator for MT4 December 17, Renko Charts Indicator for MT4 November 9, TMA Slope Alerts Indicator for MT4 December 17, MA BBands Indicator for MT4 December 17, Double Zigzag — No Repaint Indicator for MT4 April 14, Forex Trading Strategies Explained.

Forex Strategy — Price Action Strategy Explained With Examples September 23, Top 5 Best Forex Day Trading Strategies That Work March 16, Forex Trend Line Strategy Explained With Examples September 17, Recommended Top Forex Brokers. FBS Broker Review — Must Read! Volume profile is 1 of the indicators that I recommend to use and especially if you are a Supply and Demand trader this is a very handy tool. The most important thing this indicator shows is the POC.

See that red line? I will tell you if you just use the POC in your trading you will definitely become an even better trader. But what exactly is the POC and why is it so important? POC means Point Of Control and it is important because it shows us at which point the most trading took place. Where the biggest trading positions were accumulated. But who accumulates these large trading positions? The big boys! And when I talk about the big boys I am of course talking about the banks, hedge funds etc.

We all know these big guys are moving t he market and. So to have an insight into that, we can use the volume profile where we can see the POC. In short, the POC is where the big boys are. The big boys who move the market. I think you can now imagine that you can make much better trading decisions by using this indicator.

Okay, I have already shown and explained the most important indicator above. But there is another volume indicator that I sometimes use in my trading. I mainly use the volume indicator to see if there is enough volume on the market when I want to take a trade. If this matches so I mean large volume when the price is at a Supply or Demand zone this gives me an extra conformation for a possible buy or sell.

This can also help you not to enter a trade that goes into consolidation. Because the lower the volume , the greater the chance that price goes into consolidation. And the higher the volume, the faster the price often moves.

You can also easily spot possible fake outs or a change in the trend with this indicator. This is too much to explain in this blog but of course I also explain this completely in my course. I hope I was able to help some of you with this blog to become even more successful in the forex market.

Volume indicator analysis is an important technical parameter which is ignored by traders specially the novice traders. Volume plays an important role in technical analysis that helps confirm trends and patterns.

It also indicates how many stocks were bought and sold in the market at a given period. This helps us in gauging how other traders perceive the market. One of the main benefits of volume is that it leads to the price movement of the stock i. giving us early signals when the price movement is going to continue or reverse.

Hence volume indicators are useful measures for a trader. Before discussing the 9 Types of Volume Indicators, let us know what the significance of high and low volume in the stock market is:.

High volume indicates more interest in the stock and the presence of buyers and sellers in that stock. When the stock is in an uptrend, and there is an increase in volume along with the ongoing uptrend, the stocks will continue to go up.

Similarly, when the stock is in the downtrend, and there is an increase in volume along with the ongoing downtrend, the stocks will continue to go down. From the daily chart of Reliance Ltd. We can see how increase in volume are leading the prices of the stock:. When the stock is moving up and volume is falling then it indicates the interest of the buyers has reduced in the stock and the uptrend is going to reverse.

Similarly, when the stock is moving down and volume is falling then it indicates the interest of the sellers have reduced in the stock and the downtrend is going to reverse. Having understood the importance of high and low volume, now let us discuss 9 Types of Volume Indicators that will help the traders to analyse volume in trading:. On Balance Volume OBV is the volume indicator that calculates the buying and selling pressure as a cumulative indicator which sums up volume on up days and subtracts volume on down days.

The Volume RSI Relative Strength Index is a volume indicator which is similar to the Relative Strength Index except that up-volume and down-volume are used in the formula of RSI instead of changes in price. This indicator is similar to the on-balance volume OBV indicator i.

Money Flow Index MFI is a movement as well as volume indicator which analyses both time as well as the price for measuring the trading pressure — buying or selling. It is also known as volume-weighted Relative Strength Index RSI , as it also includes volume, unlike RSI which only incorporates price. The Money Flow Index MFI can be interpreted almost similarly to RSI. Trading signals are generated by this indicator when the stock signals bullish or bearish divergence, crossovers and when the stock is in the overbought or oversold zone as shown in the daily chart of Bharat Heavy Electronics Ltd.

The Chaikin Money Flow indicator is a volume indicator that helps in measuring the amount of Money Flow Volume over a particular period. Chaikin Money Flow adds Money Flow Volume for a particular look-back period, typically 20 or 21 days. According to this indicator, when the closing price is near to the high then more accumulation takes place.

Similarly when the closing price is near to the low then more distribution takes place. From the daily chart of Bhel Ltd, we can see how after make bearish divergences prices of the stock fall down:.

The Accumulation Distribution Line is a volume indicator which measures the cumulative flow of money into and out of a stock. A high positive multiplier with high volume indicates strong buying pressure which pushes the indicator higher. On the other hand, a low negative number with high volume indicates strong selling pressure which pushes the indicator lower.

This indicator tries to detect positive or negative divergences in price and volume data which signals an advanced warning of future price movements. From the daily chart of Mphasis Ltd, we can see how after make bearish divergences prices of the stock fall down:. A trader who is accumulating stock is simply purchasing stock. Also, a trader who is sharing stock to the market is selling. An easy moving price is one which continues in its trend for a particular period.

This indicator works best in volatile markets where the trends cannot be clearly seen. This indicator is best when it is used for longer time frames, like a daily chart as it identifies trends based on volume averages.

This indicator generates buy and sell signals when it crosses the 0 centreline or makes bearish or bullish divergences as shown in the chart below:. The Negative Volume Index NVI is a cumulative indicator which uses the change in volume for deciding when the smart money is active. This indicator works under the assumption that the smart money is active on days when volume decreases and the not-so-smart money is active on days when volume increases. According to this indicator a bull market is when NVI is above its day EMA and the bear market is when NVI is below.

The volume-weighted average price shows the average price an asset has traded at throughout the trading session when both the price as well as volume are considered. This indicator shows the actual value the security is trading at, so it can signal if the security was bought or sold at a fair price. Traders use the VWAP for eliminating the noise in the market to get an idea of what prices buyers and sellers are willing to transact.

When the VWAP is rising or the price crosses above the VWAP line, then it shows that the prices are in an uptrend. Whereas if the VWAP is declining or the price crosses below the VWAP line, it shows that prices are in downtrend. As discussed, Volume indicator analysis is a very important technical parameter to traders and investors.

There are many volume indicators but we have discussed some of the common and popular ones. Traders should study them and add them to your analysis tools for improving your trading. Start volume analysis for free in StockEdge app. Elearnmarkets ELM is a complete financial market portal where the market experts have taken the onus to spread financial education.

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Courses Webinars Go To Site. Home Technical Analysis. October 28, Reading Time: 12 mins read. Share on Facebook Share on Twitter Share on WhatsApp. Before discussing the 9 Types of Volume Indicators, let us know what the significance of high and low volume in the stock market is: Importance of High Volume: High volume indicates more interest in the stock and the presence of buyers and sellers in that stock.

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There are several volume indicators you can use and we have plenty to choose from. A trader who is accumulating stock is simply purchasing stock. a Volume increases compared to the day before but closing prices are higher b Price hardly moves down, even though volume has increased. But what exactly is the POC and why is it so important? LEAVE A REPLY Cancel reply. In this case, the breakout has higher chances of success. Any market moves from an accumulation distribution or base to a breakout and so forth.

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