What Is The Better Volume Indicator in MT4?
Volume indicators are histograms that show the volume of trades that are made in the Forex market over a specific period of time. But with so many different volume indicators out there, the question arises, what is the better volume indicator in MT4?
Description of the Better Volume Indicator
The Better Volume 1.5 indicator examines the behavior of Forex market players and generates a histogram of trade volume. The amount of sold or purchased lots (contracts or shares) during a period of time is referred to as volume.
Because the number of open lots in the Forex market cannot be calculated due to a unique trading approach, traders instead rely on the concept of tick volumes. The tick volume represents the total number of price changes over a specific time frame.
The Better Volume 1.5 indicator is beneficial since it accurately distinguishes traders' activity by the number of completed transactions at various points in time. As a result, you have the opportunity to understand the motivations behind Forex market players' actions and utilize this information to create your own trading method based on trading volume.
Features of The Better Volume Indicator
Better Volume 1.5 is an enhanced and updated version of the Volumes indicator that comes as standard with the MetaTrader 4 interface. So, how are these revised Better Volume 1.5 volume-based indicators and average MT4 Volumes different?
The Better Volume 1.5 filters, for starters, are more coarsely tuned. In addition, it splits the tick volume into some categories displayed in various colors, while the volume indicates the rise and fall of the number of ticks.
Second, when the Better Volume 1.5 indicator crosses columns in the volume histogram, it displays a moving average that can be used as an extra trading indication. The indicator's tick volumes can therefore be classified as trading or informational.
Volumes For Information
The standard volume of trading transactions is indicated in blue. Yellow volumes indicate low trading volumes. In such circumstances, it's best to avoid buying and selling, as a drop-in activity could signal uncertainty and caution among Forex market players.
The green volumes mean that the traders' interest has surged. However, when this happens, it is best to avoid trading because volumes increase owing to significant participants in the Forex market repositioning. It can be difficult to predict the likely direction of price movement at times like these.
The presence of red volumes indicates an increase in buyer activity.
White volumes, on the other hand, signal an increase in seller activity.
You can think about purchasing and selling options in both circumstances. However, to increase your chances of executing a good transaction, we propose that you make trading selections based on the primary trend and the big picture of the market.
Best Buy And Sell Strategies You Can Implement In Better Volume Indicator
As previously said, the indicator's trading signals should be compared to the overall sentiments in the Forex market as well as the current trend. Therefore, as the volume of purchases grows, we might look for a buy entry point.
In some cases, the stop loss should be put below the trend line; when the sell entry point appears, it signals closing the position.
In some situations, the signal indicates that sales volumes are increasing. The downtrend line acts as an additional indicator, increasing your odds of a successful transaction.
With the market price, you can identify sell entry points and securely position your Stop Loss beyond the trend line. Then, when a reverse signal (Buy) comes, the sell trade should be closed.
After installing the indicator, you may find it difficult to interpret it visually due to the high variety of colors used to paint the volumes.
However, the indicator's volume split into information and trading volumes and its rough calibrated filters and ease-of-use compensate for this slight shortcoming and can be helpful in your Forex trading.
How To Add Better Volume Indicator In MT4
To install the indicator on your MT4 terminal, follow the steps below:
- Get the ZIP archive with the Better Volume indicator file.
- Unzip the file into your terminal's MQL4/indicators folder;
- Start the MT4 terminal again.
- Double-click the indicator's name in the MT4 Navigator to activate it;
- Click "OK" after checking the "Allow DLL imports" box.
- The indicator will appear on the graph.
- Adjust the indicator's settings to meet your requirements: Switch to the "Inputs" tab by pressing CTRL+I and selecting the indicator from the list.
Frequently Asked Questions
How Do You Read A Volume Indicator?
A high positive multiplier indicates intense purchasing pressure with high volume, which drives the indication higher.
A low negative number with high volume, on the other hand, suggests intense selling pressure, pushing the indicator down.
You can use these interpretations to devise trading strategies that will best suit your risk appetite.
What Does Down Volume Mean?
Bearish trading is indicated by lower volume, whereas bullish trading is characterized by higher volume. If a security's price declines but only on low volume, there could be other variables at play besides an actual bear market.
What Does The Volume Mean?
Volume basically means the number of times a security has been traded in the market. A high volume can mean two things.
First, if the security's price is declining and its trading volume is high, it is most likely that all the activity is from selling, and there is selling pressure on the security.
If the security's price is increasing, the opposite is applicable.
Volume indicators highlight all the market's activity into a single chart that you can customize to fit different criteria. It is just a picture of everything happening.
Have you experience with this indicator? Leave a comment below.
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