Forex volume indicator.
A useful tool through which you can find out the Forex volume, or rather track its changes, which allow you to judge how strong the current trend movement is. After all, an increase in trade volumes has always been considered a confirming factor in favor of the existing price.
The volume indicator works on the principle of an oscillator, comparing the received data with the average statistical indicators on a given timeframe. This makes it possible to correctly assess the dynamics of the changes that have arisen.
Download Forex volume indicator.
After downloading, unpack the archive and copy the script file itself to the trader’s terminal folder; the whole process is described in detail on the “Installing a Forex indicator” page.
Having launched the trader’s terminal, we find the tool in the “Custom Indicators” folder under the name Normalized Volume Oscillator and proceed to installing it on the chart of the working currency pair.
The script is almost completely ready for use; if you wish, you can only change the range of its operation and the period.
The oscillator is displayed in a separate window and does not interfere with observing the movement of the trend in the main window of the trading terminal.
Data is displayed in the form of multi-colored bars, which can be located below or above the main line. This approach is due to the fact that when working, data is compared with the average volume on Forex.
And if the bars are below the main line, this means that there is currently a significant weakening of trading activity. The bars are colored differently:
Blue – volumes have fallen below the average for a given timeframe.
Green – slight increase in market activity.
Yellow – the indicator exceeds the statistical average by more than 50%.
White – significant increase in volumes, more than 100%.
Testing of this tool has shown the correctness of its operation, and you can check the effectiveness of its use yourself.
To check signals, it is recommended to use at least one additional Forex indicator. How to use the obtained data in trading, read the article “ Forex Volume ”.