MT4 Indicators
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MT4 Indicators
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MT4 Indicators
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MT4 Indicators
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MT4 Indicators
$ 0
MT4 Indicators
$ 0
MT4 Indicators
$ 0

Volume indicators in the currency trading are less common, than in stock market trading, since in the Forex market it’s impossible to calculate the accurate volume of all transactions made to buy and sell trading assets. Nevertheless, these type of technical indicators has been adjusted to the specified terms of the currency market.


Working principle of volume Forex indicators

In case there is a strong uptrend on the financial market, the volume of entered trading positions increases, conversely, when a steady downtrend is shown on the market, the volume of currency buying trades decreases.

In other words, if the volume grows, this means that traders in the market are interested in the trading assets and the bullish trend will be continued. When the volume of trades decreases, it signals that the traders lose the interest in the current price of the asset and that the bearish trend is emerging on the market.

The main advantage of the volume technical indicators is that the volume changes are always ahead of the trend changes. Therefore, by the volume indicators it's possible to predict how the asset price trend will be changed in the near future.


Most popular volume indicators


On balance volume (OBV)


OBV is a part of the basic set of many trading platforms, including the most popular MetaTrader. The indicator algorithm is used to prove the formed financial market trend, as well as to receive signals about the future markets reversals.


Bill Williams Indicator (MFI)

The work algorithm of this indicator is based on the comparison of the price changes with the volumes of trading transactions made on the Forex. It is considered that this technical indicator provides more accurate signals than many oscillators and trend indicators, but it can be used as a standard oscillator. The indicator generates overbought and oversold points of the trading asset and, if the price value is out of the specified values, respectively gives a signal to sell or buy.


Acceleration / Deceleration indicator (A/D)

One more technical indicator that can be considered as an oscillator. With its help it is easy to calculate the rate of acceleration and deceleration of the prices on the financial market. In other words, identify the driving force of the market.

When the trend is downward, the market tends to be closed at the lowest prices, while the volume of trades increases. Hence, the A / D indicator identifies the increase in the volume of trades made on the both the growing and the falling financial market.

For using the A / D indicator it is recommended to set the user settings, because the standard ones often provide the false Forex signals and, therefore, cause the losses.

As mentioned before, the volume indicators are not as popular among traders as other types of technical indicators. However, using them along with some other types of indicators, for example, trend indicators, will guarantee that the received trading signals are correct.

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