Forex Trading

The Better Volume Indicator Tradingview Compare Colors

White color – is a very large volume which appears at the beginning either at the end of trends or during corrections. better volume indicator Red color– is very large volume which appears at the beginning either at the end of trends or during corrections.

While you can still make money even in tight range markets, most trading strategies need that extra volume and volatility to work. The Forex market is the largest and the most liquid market in the world, with 6 trillion dollars worth of transactions performed on a daily basis. If you can master volume analysis, a lot of new trading opportunities can emerge. The Forex market, like any other market, needs volume to move from one price level to another. Here is a simple example of a trading strategy that uses the Better Volume function. CFTC Rules 4.41 – Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.

Forex Scalping Indicator System Trading Mt4 Best Strategy Profitable Signals

Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. This indicator looks to be helpful in trading; however, it does not display in the indicator window of my MT5 platform. There is either a bug in the code or the indicator is not compatible with build 2560. Could you check the code and let me know, so that I can try it and comment on its use. Yellow color – candles which have very small tick volume. Most often it is possible to observe it at the end of trends.

Please refer to the original author for any details of its operation. My changes only relate to the technique of reconstructing the tick data volume from lower time-frame source data (e.g. 1min), which mitigates many of the problems. When the Chaikin indicator breaks back above zero, it signals an imminent rally as the smart money is trying to markup the price again. On the other hand, if the cash flow and trading volumes decrease– we see a “bearish divergence”, meaning that it will likely be an appropriate time to sell. The Chaikin indicator will dramatically improve your timing and teach you how to trade defensively. Having a good defense when trading is absolutely critical to keep the profits that you’ve earned.

Williams %r Indicator

You would have known you were in a winner once you saw the volume pick up on the breakdown as illustrated in the chart and the price action began better volume indicator to break down with ease. The interesting thing about the Netflix chart is the stock never made a new high after the first 5-minute bar.

There is nothing else out there like it that I know of. This is a TradeStation glitch/limitation – text and trend lines can only be plotted to the nearest minute, not second. When the market is moving quickly the signal text is plotted at the nearest whole minute bar and not above or below the real signal . The logic behind this volume pattern is that break outs led by Amateurs often fail. Amateurs are always chasing price, entering late and expecting a breakout from congestion to turn into a trend move. Professionals will fade this behavior, drive price back into congestion and gun the Amateur stops. Stopping Volume and Profit Taking show Professionals are reversing their positions.

Colored Volume Bars

However, the Professionals trade in size and need to scale in and out of positions. So these volume patterns are often seen before the market eventually reverses. For ideas on how to use the indicator you may consider reviewing our posts on the TDI indicator or the Squeeze momentum setup. Support / resistance indicators are located the Session Tools category and we have a post on Fibonacci retracement levels. Finally, make sure to also check out the Range Analysis indicator, identifying narrow range patterns as discussed here. The what is liquidity uses two lookback periods.

Typically on a rally, the Chaikin volume indicator should be above the zero line. Conversely, on sell-offs, the Chaikin volume indicator should be below the zero line. The Volume indicator Forex used to read a volume in the Forex market is the Chaikin Money Flow indicator .

Volume Patterns Are Best Traded With Confirming Indicators

The volume represents all the recorded trades for a security during a specified period. This specified period can range from daily charts to 1-minute charts. I also made a “paint bars” version of the indicator. It works in pretty much the same way, except that it paints the bars with the colour of the climax/churn/low vol/etc.

better volume indicator

This indicator highlights each volume with the corresponding color, there is a description on application. In theory, Attributable Volume should better For business. News events are better volume indicator typical moments when volume can increase. DepthHouse Better Volume also changes how each bar color is calculated. Feel free to post in the Pinescript room if you have any queries.

Better Volume Indicator

Love the Pro Am indicator – I use it with trend lines are price action. Better Pro Am has really helped me … yesterday the paint bar showed the Professionals loading up in the morning before the big drop. As the market cycled back and forth every time it made it back to the top of it’s range the Pros stepped in. I think your Better Pro Am indicator is brilliant … It’s a really clever idea measuring the average trade size to check the Pro’s and Am’s.

To distinguish the up/down bar, there is an option called “Shade”. When set to “Yes” it will use darker colours for the down bars. For example, churn is normally lime green by default, but on the paint bars, it will be a darker shade of green if it was a down bar. You can see the regular indicator on top, and the new BETTER_VOLUME indicator below. You can see BETVOL incorrectly shows a “climax churn” bar for Thursday. The core functionality and logic of this indicator is not changed.

The Best Volume Indicator

When a stock is moving higher in a stair-step approach, you will want to see volume increase on each successive high and decrease on each pullback. The underlying message is there is more positive volume as the stock is moving higher, thus confirming the health of the trend. For those that follow the blog, you know that I like to enter the position on a new daily high with increased volume. You will need to place your stops slightly below the high to ensure you are not caught in a trap. This strategy works for both long and short positions. The key again is looking for the expansion in volume prior to entering the trade.