AdStart Trading with one of the leading brokers you choose, easy comparison! We Checked All the Forex Brokers. See The Results & Start Trading Now! Here’s the list of some of the frequently used best volume indicator forex: 1. On Balance The Volume Indicator MT4 is a custom technical indicator designed to help all categories The Better Volume Indicator MT4 is a great trading tool to behold if you want to trade like a The best volume indicator is a helpful tool for traders and investors. It can be used to monitor ... read more
Manual traders will find this indicator useful, as it shows the price trend with the highest level of accuracy. However, if for any reason the price of the currency pair you intend trading is going north, it will trigger the indicator bars to turn green in the indicator frame.
Contrarily, if the price is going south, the indicator bars will turn all green in the indicator frame. Therefore, you need to set up your orders at the resistance level. The Better Volume Indicator is designed to send traders popup alert, notification, push alert, and email alert whenever climax churn, high volume churn, or volume climax occurred.
Relate the bars in the D1 timeframe and keep things simple. You can use a demo account to understand how the indicator works before switching to a live account. The major feature of the Better Volume Indicator is that it considers a different combination of volume quantities and candles.
For convenience, each signal is color-coded as follows:. Purple: Indicates a rare signal but expressed as a row of candles. It also has a large volume on the chart 2. Blue: There is no signal 3. White: White appears during the completion of a bullish trend or at the origin of a downtrend. Yellow: Yellow is used to label low volume candles 5. Red: This indicates a bullish candle with a large volume and large spread 6. Green: This appears before the end of a trend. It also represents a combination of a large volume and a small candle.
The Better Volume Indicator MT4 supports most currency pairs across different timeframes. It is also suitable for intraday traders, swing traders, and scalpers. The Better Volume Indicator helps traders to minimize losses at the start of an emerging trend. The indicator generates trade signals that can help you make entry and exit decisions.
It can be combined with other indications for effectiveness and efficiency. The indicator is capable of notifying you whenever there is a trade opportunity. It takes away emotions and fear when trading.
Volume Relative Strength Index RSI 4. Chaikin money flow indicator 5. Money flow index 6. If you are thinking of using the best volume indicator forex , then think about the OBV.
On Balance Volume OBV Indicator is effective, yet an easy indicator used for measuring pressure buying and selling.
OBV is cumulative in nature. There is always an increase in volume OBV total plus the volume of the day whenever the market finishes on the higher side.
Also, there is a reduction in volume OBV total minus volume of the day whenever the market finishes on the lower side. The value of OBV value is plotted as a line.
This makes it easy to interpret. Basically, On Balance volume Indicator is used to determine the overall price movements after divergences. On Balance Volume OBV was generated by Joe Granville. The indicator is an ancient indicator well-known for both positive and negative volume flow. On Balance Volume OBV identifies the overall trends of the market.
It can also check setups created by extra signals which depend on being able to identify the trend. Also, OBV can spot likely trend reversals. When price movements are not established by the indicator, it is known as Divergence. OBV indicator considers volume oscillations positive and negative with price changes.
The divergence amid price and OBV helps to identify possible reversals. Divergence could be bullish or bearish. It is bullish when the price drops a lower low but OBV goes up a higher high.
While a bearish divergence occurs when OBV goes lower but the price goes higher. OBV may give predictions, but a trader may likely not know the events as regards the given signal.
This could result in false signals. Hence, to balance it out, the Lagging indicators can be used. Download the Volume Indicator file from a reputable Marketplace 2. The file should be saved in a location on your system where you will easily remember 3. Move the file to the Indicator Directory folder 4. Launch or restart your MT4 trading terminal 5. Select the trading chart you wish to install the indicator 6.
Look out for the Volume Indicator in the indicator directory folder 7. Adjust the default settings according to your trading preferences 9. The Volume Indicator should appear on your trading chart. If you no longer need the indicator, you can uninstall it from your trading chart.
Here is how to go about it:. Launch your MT4 trading terminal 2. Head straight to the indicator directory folder 3. Look out for the Volume Indicator 4. The indicator should disappear from the list of custom indicators in the folder. You can combine the Volume Indicator MT4 with other indicators to increase its effectiveness. For instance, you can combine it with the Keltner Channel indicator to suggest or predict possible breakout levels.
The Keltner channel is a good indicator that serves as a volatility envelope. It works by becoming wider the moment there is an increase in prices, and narrow when the prices declined.
You can also combine the Volume Indicator with the Support and Resistance indicator, Gap Indicator, as well as a breakout indicator.
This combination will help you to trade with confidence without second-guessing.
This article is dedicated to showing you some of them. Many professional forex traders never make a trade without consulting a volume indicator. The reason is that most trend indicators merely give you entry and exit signals.
But not all signals are true. Relying solely on trend indicators may cause you to get into more losses. This is where a volume indicator comes in handy. With a volume indicator, you can filter out signals with a higher probability from others. The Better Volume 1. And just like its source indicator, it makes use of bars that measure how much the price has moved in a period. This indicator differs from its source indicator in that it gives more information about the instrument being traded than the source indicator.
Better Volume makes use of colors that have distinct interpretations to help forex traders make more sense of what the forex market is doing. Another standout feature of the better volume indicator is that it displays a moving average over the volume bars.
This gives you an additional tool from which to draw information. Perhaps, the best way to use the better volume indicator is as the developer intends it to be used. That is, by sticking to the color codes. Blue bars represent the average market condition. The red bar signifies a strong bullish signal while white is a strong bearish signal.
Yellow pops up when there is very low trading volume, and green when there is a somewhat increased attention on the currency pair by traders. Putting these together helps you know the best time to be in and out of any trade, and that is why the Better Volume indicator ranks on our list of the best Volume indicators for forex traders.
Another indicator, Better Volume News Alerts indicator , is similar to the better volume indicator we describe here. The only distinction is the difference in colors.
What the Better Volume colors yellow, the Better Volume News Alerts colors it brick red. Similarly, blue becomes white, white is now peach, and red and green are blue. The Volume profile indicator appears on your chart as a series of horizontal lines that extend to the right once you install it on your MT4. The main idea behind this indicator is to help traders observe potential areas of high price action activity. Traders may have better results when they use the Volume profile indicator to spot potential reversals or dynamic and short-term support and resistance zones.
You can use the lines of the indicator as support and resistance levels for that current period or the next. The Volume Profile indicator does just that.
It allows you to customize its settings to suit your preferences without obstructing other pieces of information on the chart. Another standout feature of this indicator is that it allows you to customize the range period of the lines. By default, the range period is 1 day, but you can edit this to a weekly, monthly, or even minute basis. This feature makes it perfect for all kinds of trading styles across all timeframes.
This indicator would always give an incomplete outlook on the market when you use it in isolation. The best way to use this indicator is by combining it with some other forex technical analysis tools. For instance, you can gain more accuracy when you combine the Volume Profile indicator with price action knowledge.
The VWAP plus indicator is one of those few indicators that combine volume with trend signals. VWAP stands for Volume Weighted Average Price, which testifies to the integral part volume plays in it. This indicator gives its signals by relying on volume to determine areas of dynamic support and resistance levels. VWAP Plus appears on the chart as a series of lines that extend from a vertical line on the left.
As soon as you install the VWAP plus indicator, advanced traders may already be able to guess that it tells zones of dynamic support and resistance. The trading idea behind the VWAP is quite simple. The area above the aqua blue line of the VWAP is the bullish area, while the area below signifies the bearish area. And surrounding this line are yellow and white lines that signify areas of dynamic resistance and support levels, respectively. A trader may enter a trade after the price crosses this midline and take profit at any of the surrounding lines.
Another useful feature traders can always fall back to is that the VWAP plots blue horizontal lines that extend to the left of the chart. These lines can also be used as support and resistance levels, as the price tends to make reactions around these lines. The Tick Volume indicator helps a trader determine the best time to enter a trade. It rides on the same tick per period concept that all other volume indicators in forex rely on.
However, this one looks more appealing and less confusing as it uses four colors on wavelike bars to give clear predictions of market activity.
The Tick Volume indicator differs from other indicators in the way it presents its signals. It does so in such a way that its interpretations are objective and unambiguous. For instance, the bars move in waves above and below a midpoint. These bars appear in four colors that have distinct interpretations and give trade entry signals. So, the Tick Volume indicator tells the volume while also generating automatic trade entry signals.
The blue color signifies a rising volume in an uptrend while the green bars represent a falling volume in an uptrend. You should look to buy when the first few blue lines appear above the midline. Similarly, the yellow bars represent rising volume on the downtrend while the red bars signify falling volume on the downtrend.
Your sell orders should come in when the first few yellow bars appear. The On Balance Volume indicator is a popular indicator that most traders use to identify price momentum. A sharp momentum rise often signifies that the price may soon rise, while a sharp drop is a precursor for a drop in price level.
Another feature you can take advantage of on the OBV indicator is divergence trading. And this is where OBV divergence comes in handy.
Traders use the OBV indicator to spot areas where the price diverges from the indicator line. This is often a sign that a trend is weakening or a reversal is about to appear. However, spotting divergences is sometimes hard for novice traders. Even professional traders miss some divergences. And when a novice trader spots a divergence, knowing what direction to make their trade can be confusing too.
But this OBV divergence indicator neutralizes these problems. It draws out divergence lines on the chart, helping you to not miss any new divergence that appears in the forex live market. This indicator takes it a step further by attaching arrows at each divergence to tell you what to trade. They can now simply enter trades based on the arrows. The deftness with which the OBV divergence points out its signals is what makes it rank on our shortlist of the best Volume indicators for all traders.
This indicator can have its accuracy increased by comparing it with other divergence indicators, such as the RSI divergence and Stochastic Divergence indicators. Many forex traders rely on volumes when looking for the optimum trade entry positions, which is a good thing. The more the volume, the more volatile the pair is going to be, and the more trading opportunities there will be. However, Bill Willaim, the developer of the Market Facilitation Index indicator argues that it is not enough to just know what the volume says.
It is just as important to understand the reaction of the traders to what the volume says. The MFI indicator measures the price movement in relation to the volume. And this is where the MFI shines. It also helps you know what other traders are thinking about your currency pair. If the MFI increases with volume, for instance, this is a good sign that the trend may be strong. The MFI uses the green bar for this. The direct opposite is the brown bar which appears when both MFI and volume are dropping on a trading instrument.
The other two scenarios are when the MFI and volume are going in different directions, and the MFI represents these with white and blue bars. You should approach with caution when these bars appear. It is easy to treat the buy-sell volume indicator as just another confusing indicator, especially of your first contact with the indicator. There are a number of ways to use the buy-sell volume indicator.
However, one way to use this indicator that is not so popular is looking for places where a color edges out of the other color. When green edges out red on the high or rise of the indicator, buy. Sell when the red color edges out of the red in a high of the indicator. It is easy to miss these signals, and you may even need good eyesight to spot these edges. This strategy on smaller time frames for intraday traders.
The strength of the Weiswave indicator is in the way it attempts to reproduce the efforts of traders with a series of waves of bars. Traders who know how to interpret these waves often claim that their trading is better for it.
Perhaps, one of the standout uses of the Weiswave indicator is the way it clearly signals potential reversals. When you notice that the height of each wave is shorter than the previous ones, this might be a sign that your current trend is weakening and a reversal might happen soon. What the indicator does not do, however, is to attempt to predict the exact time the reversal is going to appear.
The waves may continue to reduce in size for a while before the reversal eventually happens. So, when using this indicator to spot reversals, treat it more as a warning indicator and not an entry or exit indicator.
The Volume Indicator MT4 is a custom technical indicator designed to help all categories AdA Free Online Financial Trading Course On Trading with Indicators - With Certificate. Thousands Of Free Certificate Courses. Study Online Anytime, Anywhere & At Your Own Pace The best volume indicator is a helpful tool for traders and investors. It can be used to monitor AdStart Trading with one of the leading brokers you choose, easy comparison! We Checked All the Forex Brokers. See The Results & Start Trading Now! Here’s the list of some of the frequently used best volume indicator forex: 1. On Balance The Better Volume Indicator MT4 is a great trading tool to behold if you want to trade like a ... read more
More people have to look at this and understand this side of the story. It takes away emotions and fear when trading. Launch or restart your MT4 trading terminal 5. While a bearish divergence occurs when OBV goes lower but the price goes higher. The area above the aqua blue line of the VWAP is the bullish area, while the area below signifies the bearish area.Volume can also enable you to analyze whether veteran traders are buying or selling at the bid or ask price. This feature makes it perfect for all kinds of trading styles across all timeframes. Here, you could best forex volume indicator mt4 several effective indicators and tools available for every trader ready to maximize profit, so check out the link. For instance, the bars move in waves above and below a midpoint. This is where a volume indicator comes in handy.