Volumes indicator.
We present to your attention one of the best indicators for measuring market volumes; its distinctive features are the absence of the need for fine tuning and ease of use in almost any Forex strategy .
You can download the volumes indicator completely free of charge below in the text of the article. This is not the standard option that you can find in any of the trader’s terminals, but a more advanced version with significantly expanded functionality and an attempt to separate trading volumes relative to their direction.
The volumes indicator is more similar in appearance to an oscillator; after installation in the MetaTrader trading terminal and launched on the chart, it is displayed in a separate window in the form of a histogram consisting of bars.
The bars are two-colored, sell deals are colored red, and buy deals are blue.
With standard settings, the lines overlap each other, which does not allow you to accurately monitor the existing situation. To improve the visual presentation of information, it is enough to change the width of one of the lines in the volumes indicator settings on the “Colors” tab. Afterwards you will get a more interesting picture, an example is shown in the figure below.
In addition, additional information is displayed on the screen, allowing you to measure such parameters of market volatility as:
Ticks volumes (currency pair) - the average value of the number of transactions made for the working currency pair.
Its growth almost always indicates support for the existing trend direction. BUY volumes – the number of transactions made by traders to purchase currency; the larger the value of this indicator, the greater the number of Forex players who believe in the upward trend and act as bulls.
SELL volumes – this indicator characterizes the so-called bearish sentiment; its value indicates the number of transactions to sell the currency.
Download the volumes indicator
Some application features.
This technical analysis tool is used quite simply; a decrease in the value of the Ticks volumes indicator indicates a high probability of an imminent market reversal.
Accordingly, its stable growth indicates a strong trend. Indicators of the number of transactions of bulls and bears can be mainly of a reference nature, since in our case the volume of Forex in terms of transactions does not have a strong impact on the price existing on the foreign exchange market.
After observing the operation of the volumes indicator, you will be able to independently identify additional patterns in its operation.