One big mistake that most forex traders usually make is ignoring volume. That’s a big trading mistake! While volume is the most underrate variable by most traders. So knowing how to analyze and interpret volume could be the magic you need to make it big on the forex market. And that is where Better Volume Indicator MT4 could make a noticeable difference. A good volume indicator should always be in our list off best metatrader indicators.
Market volume can enable you to see market turning points, trend changes clearly, and also anticipate and develop pullbacks. Volume can also enable you to analyze whether veteran traders are buying or selling at the bid or ask price.
How do you leverage volume to make the most out of the forex market?
This is where a volume indicator comes in. There are several volume indicators on the market which you can choose from to analyze market volume and predict market trends. However, picking one of the indicators is usually a nightmare for most traders.
One volume indicator that has proven to be effective and outstanding is the Better Volume Indicator MT4. This indicator typically improves the traditional volume histogram by applying different colors to the bars based on the following criteria:
1. Low Volume – This is the low volume bar colored yellow.
2. High Volume Churn – This is the low range or high volume bars colored paintbar blue or green.
3. Volume Climax + High Volume Churn – This combination is colored magenta.
4. Volume Climax Up – This is the high range or high volume up bars colored red.
5. Volume Climax Down – This is the high range or high volume down bars colored white.
The default histogram bar when there is no volume signal is colored cyan. However, with the help of the Better Volume Indicator, the histogram is colored differently.
Because of the essence of this indicator, we will now take a look at the features and benefits of using this indicator, as well as, how to install and uninstall the indicator.
What Is The Better Volume Indicator?
The Better Volume Indicator MT4 is a leading custom indicator that is designed to help traders analyze key market trends. It uses the SMA data and the volume indicator algorithm to perfect the analysis. Manual traders will find this indicator useful, as it shows the price trend with the highest level of accuracy.
However, if for any reason the price of the currency pair you intend trading is going north, it will trigger the indicator bars to turn green in the indicator frame. Contrarily, if the price is going south, the indicator bars will turn all green in the indicator frame. Therefore, you need to set up your orders at the resistance level.
The Better Volume Indicator is designed to send traders popup alert, notification, push alert, and email alert whenever climax churn, high volume churn, or volume climax occurred. If you don’t want the notification, you can turn it off from the indicator settings.
Ensure you don’t mess up your trading chart by adding too much volume indicators alongside this tool. Relate the bars in the D1 timeframe and keep things simple. You can use a demo account to understand how the indicator works before switching to a live account.
Features of the Better Volume Indicator
The major feature of the Better Volume Indicator is that it considers a different combination of volume quantities and candles. For convenience, each signal is color-coded as follows:
1. Purple: Indicates a rare signal but expressed as a row of candles. It also has a large volume on the chart
2. Blue: There is no signal
3. White: White appears during the completion of a bullish trend or at the origin of a downtrend.
4. Yellow: Yellow is used to label low volume candles
5. Red: This indicates a bullish candle with a large volume and large spread
6. Green: This appears before the end of a trend. It also represents a combination of a large volume and a small candle.
Additional features of this indicator are:
1. The Better Volume Indicator MT4 supports most currency pairs across different timeframes.
2. It is also suitable for intraday traders, swing traders, and scalpers.
Pros And Cons Of Using The Better Volume Indicator
1. The Better Volume Indicator helps traders to minimize losses at the start of an emerging trend.
2. The indicator generates trade signals that can help you make entry and exit decisions.
3. It can be combined with other indications for effectiveness and efficiency.
4. The indicator is capable of notifying you whenever there is a trade opportunity.
5. It takes away emotions and fear when trading.
6. It supports the MT4 trading terminal.
1. It may fail to generate buy/sell signals to make a deal
2. It sometimes gives illogical signals
How To Install The Indicator
Downloading and installing the Better Volume Indicator is very simple and straightforward. Here is what you should do:
1. Download the Better Volume Indicator file from a reputable Marketplace
2. Save the file on your system where you will easily remember
3. Move the file to the Indicator Directory folder
4. Launch or restart your MT4 trading terminal
5. Select the trading chart you wish to install the indicator
6. Look out for the Better Volume Indicator in the indicator directory folder
7. Upon finding the indicator, right-click on it and click on “Install the indicator.”
8. Choose the default settings to suit your trading preferences
9. The Better Volume Indicator should appear on your trading chart.
Removing The Indicator
If you no longer need the indicator, you can uninstall it from your trading chart. Here is how to go about it:
1. Launch your MT4 trading terminal
2. Head straight to the indicator directory folder
3. Look out for the Better Volume Indicator
4. Right-click on the indicator and select “remove.”
5. The indicator should disappear from the list of custom indicators in the folder.
Final Thoughts On Better Volume Indicator MT4
The Better Volume Indicator MT4 is a great trading tool to behold if you want to trade like a professional. With this indicator, the problem of second-guessing and trading with emotions would be a thing of the past.
To make the most of the forex volume indicator, combine it with other indicators like MACD indicator, moving averages, and Stochastic Oscillator. Thankfully, we have these indicators on our website for you to take advantage of through this link.