In short, the POC is where the big boys are. The big boys who move the market. I think you can now imagine that you can make much better trading decisions by using this indicator. Okay, I have already shown and explained the most important indicator above.

But there is another volume indicator that I sometimes use in my trading. I mainly use the volume indicator to see if there is enough volume on the market when I want to take a trade. If this matches so I mean large volume when the price is at a Supply or Demand zone this gives me an extra conformation for a possible buy or sell. This can also help you not to enter a trade that goes into consolidation. Because the lower the volume , the greater the chance that price goes into consolidation.

And the higher the volume, the faster the price often moves. You can also easily spot possible fake outs or a change in the trend with this indicator. This is too much to explain in this blog but of course I also explain this completely in my course.

I hope I was able to help some of you with this blog to become even more successful in the forex market. So if you are a beginner trader and to become a good professional forex trader. Want to know more about forex volume indicators? The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones. Which are already traded and tested by thousands of TFS members and performs daily trades.

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A green bar implies that large volumes are present in the market. At that, height of the candle corresponding to the green bar is usually small. That is especially the case if large hedge funds close their positions or open new ones. When a green bar appears in the volumes histogram, it signals a possible change in trend direction.

That does not mean, however, that price is going to reverse immediately and sharply. The price reversal may happen later due to the effect of the market inertia. A red bar usually stands out for its height and indicates a large domination of buyers over sellers in the market.

This is often true when buyers enter the market quickly. The red bar may be followed by a change in trend direction from bearish towards bullish or a deep bullish retracement. A white bar plays the same role as the red one. The only difference between them is that the former signals a sharp increase in the activity of sellers in the market.

The white bar may be followed by the market reversal to the downside preceded by an uptrend or a deep bearish retracement. The diagram of the Better Volume indicator also includes a moving average which primary purpose is to divide bars of volumes by their height. In conclusion, let us stress that the Better Volume indicator actually provides traders with a basis for developing their own trading system. Despite its simplicity, it appeals to the fundamental data, i.

trading volumes that always have an immense impact on price direction, forming and fading of trends. If you have any difficulties while installing the indicator, please view the detailed instruction. Home Products Indicators Signal Better Volume. How to Install. Product Info. System Requirements. Product Categories. Indicators 22 Sentiment 9 Signal 6 Utilities 7. All-In-One Free. The indicator automatically draws important Pivot Points using the most popular methods: Classical Floor , Camarilla, Woodie and Fibonacci.

OrderBook Pro. Open trades and pending orders of retail traders are displayed as a two-sided histogram. The indicator will spot support and resistance levels with which the price has actively interacted before. StopLossClusters Pro. The indicator displays levels on the chart with the maximum volume of Stop Losses set by other market participants. TradingSessions Free. Shows the most significant trading sessions for the Forex market, such as London, New York, Tokyo, and Sydney.

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What is volume in Forex and how do I measure it? What are the volume indicators for MT4? Why Volume Zone Oscillator is the best Forex volume indicator. Hello, dear traders! Stockbrokers know the importance of volume analysis. Volume, open interest, and price are key components in trading decisions. But unlike stock and futures trading, Forex volume is rarely used in trading.

And there is a good reason for this. The currency market is a decentralized market where trading operations are carried out outside the exchange. This means that there is no formula for volume or method for tracking the number and size of contracts as in the stock market. However, there are volume indicators for MT4 that help the trader determine the approximate volume on Forex.

In this article, you will learn how volume is measured in Forex, whether you can use volume analysis in the Forex market as in the stock market, and how to use the Volume Oscillator and Volume Zone Oscillator indicators to increase your profit. See also our rating of Forex brokers. Here you can find only reliable and proven brokerage companies with real reviews of traders.

Volume is like the air we breathe. Without volume, it is impossible to make the right trading decision. Volume is what makes prices move forward and creates trends. If you are a day trader, trend trader, or swing trader, you need volume to see the price move. Without volume, we can't make a profit. When there is no volume, we usually lose money. Thus, it is important not to ignore the volume analysis on Forex. If we have a good volume indicator, we can avoid unnecessary losses.

In the long run, this can be extremely important for making a good profit. So, how do I measure volume in Forex? Unlike the stock market, we can only measure volume on Forex by counting tick movements. The volume indicator can't measure how many contracts are sold on Forex, but it can calculate how many ticks the price moves up or down in any time period. If the market has a high trading activity, the number of ticks per second will increase, which indicates an increase in the volume of Forex.

The formula of the Volume Oscillator indicator is based on the above-mentioned principles. Very few traders know how to use volume analysis to increase their profits and minimize losses. Many traders don't understand why volume analysis is a powerful tool. We can even identify several types of Forex volume indicators available on most trading platforms.

But, oddly enough, most traders don't know how to use volume indicators to maximize their profits. Volume is mostly useful because of its ability to draw attention to unusual purchases or sales. The price usually moves from periods of low-volume activity to high-volume activity. If you notice this heavy trading activity, you can trade alongside major players. High volumes of purchases and sales can generate trends and be catalysts for changing the direction of the trend. Volume analysis can help you see these trends before they are visible on the price chart itself.

Let's now define what the Volume Oscillator indicator is and how to correctly interpret the information of this technical tool. See also what ECN brokers are and what their advantages are. Volume Oscillator is part of the family of oscillator indicators. Volume tracks purchases and sales over a period of time.

An oscillator is a technical instrument that has the form of sine waves. These waves will change over time above and below the center line. The volume indicator soit is very closely related to volatility. The oscillator measures volume as the difference between two moving averages :.

The difference between the two moving averages is then displayed as a sinusoid line, expressed as a percentage. The Volume Oscillator settings can be adjusted to suit your trading needs.

The Volume Oscillator indicator moves above and below the center line. Moving above the midline gives us a positive value. And moving below the center line gives us a negative value.

The volume is higher than the center line when the fast MA is higher than the slow ONE. And the volume is below the center line when the slow MA is higher than the fast ONE. When a bullish or bearish trend is accompanied by an increase in volume, this is a sign of strength in the prevailing trend. However, if an uptrend or downtrend is accompanied by a decrease in volume activity, this is a sign of weakness in the prevailing trend.

We can use it to confirm a breakout of support or resistance. For example, a breakout of resistance accompanied by an increase in volume indicates a strong movement. This is a great tool for detecting false breakouts. Below we will describe the most popular Forex volume indicators and explain why Volume Zone Oscillator is the best volume indicator in trading.

See also which brokers have the lowest spread. There are a huge number of volume indicators. Here we have collected the most commonly used types of Forex volume indicators:. ROC and PVO are purely volume indicators. For example, OBV compares closing prices and volume. While MFI and CMF compare closing prices, volume and price ranges. Each indicator uses a slightly different volume oscillator formula, so your goal is to find the best volume indicator that matches your trading style.

What is the indicator the most effective to trade on the Forex market? In our opinion, the Volume Zone Oscillator VZO is the best volume indicator that you can use in your trading analysis.

See also how to install indicators in MT4. Volume Zone Oscillator VZO is a technical indicator that analyzes the activity of purchases and sales in relation to certain price zones. The main idea of the VZO indicator is that the volume precedes the rise or fall of the price. VZO is a relatively new indicator that was introduced to the trading world in by Walid Khalil and David Steckler.

But it can be found on the most popular Forex trading platforms. In addition, the VZO indicator adds an exponential moving average to smooth out volume readings. The resulting curve is then displayed in a separate window under the price chart. Unlike other volume indicators, VZO moves between relative percentage levels. This is the limit of the oscillator's range. But between these zones we can distinguishand there are more relevant volume zones that can generate buy and sell signals. However, volume cannot be used as an accurate input and output tool.

It can only be used as a filter in combination with other indicators. See also what brokers are available for trading expert advisors. A move above the midline will give us a bullish signal, while a move below the midline will give us a bearish signal. But first, let's remember the basic principles of the Dow. During bullish trends, volume increases with price increases. The same is true in the opposite direction for bearish trends. Let's look at the GBPUSD chart.

We are in a strong bearish trend. The VZO is located below the center line, signaling sales pressure. The GBPUSD chart above shows how during bearish trends, VZO tends to stay in the lower volume zone, hovering between 0 and Want to learn more about oscillators? Be sure to read the article about the Stochastic Oscillator indicator. Now let's see if you can determine the direction of the trend using only the VZO indicator without a chart?

If you said that this is a bullish trend, then you are right. The volume zones speak for themselves. See also what brokers there are with cryptocurrency trading.

With a little practice, you can master trading using the Volume zone Oscillator indicator. Remember that analysis Forex trading should always be used in conjunction with price analysis. This will lead to effective buy and sell signals.

The volume indicator can highlight hidden strengths and weaknesses of a trend that are not visible to the naked eye. Read also the article " what are CFD contracts on Forex?

Có giấy phép giao dịch forex đảm bảo uy tín Chi phí giao dịch thấp Nền tảng xStation Có hỗ trợ tiếng Việt cho các trader VN. In addition, the indicator makes it possible to calculate the total volume of buying and selling on a certain time frame. And when I talk about the big boys I am of course talking about the banks, hedge funds etc. Conversely, when a market falls on increased volume, it is considered to be under distribution. Giấy phép giao dịch đầy đủ Chi phí giao dịch thấp so với nhiều sàn Nền tảng SaxoTrader Đội ngũ phân tích thị trường chuyên sâu. One slight twist to this indicator that you might want to try out is to combine these key volume levels with Fibonacci. Forex Volume Indicators: Acceleration Bands Market Facilitation Index Volume Chaikin Money Flow CMF Accumulation Distribution Volume Oscillator PVO Demand Index On Balance Volume OBV Money Flow Index MFI VWAP Volume Weighted Average price The methodology of using Volume indicators When Volume increases it indicates a growing interest in the market, therefore it may strengthen a main trend or start a new trend; When Volume decreases it indicates that interest in the market is decreasing, which calls for either a trend reversal or temporary market consolidation; Sudden and vigorous increase in Volume may signal for an upcoming reversal, while gradual decreasing in Volume may still be supported by rapid price moves.

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