In Forex trading, traders have a common goal making a profit from the rise and fall in exchange rates by actively speculating on which way the Forex prices will go in the future. Now that Forex trading is defined, you can see how complex it can be.

Even if you know that you are good at trading and making speculative trades, it does not mean that your trades will always be correct. Because of this, Forex traders are using advanced strategies, tools, and analytical methods that are designed to work in their advantage.

This is a technical indicator that acts as a confirmation tool for market trends. For instance, when the OBV and the price are moving in the same direction, it is a clear indication that a price trend is developing.

Forex Volume Indicator for MT4. Download Better Volume | FXSSI - Forex Sentiment Board

For beginning Forex traders, using the OBV can be confusing at first as it requires an understanding of how the indicator works and how it can be used in aiding trading decisions. Much like momentum, this can help you understand how much strength lies behind a price move. Similarly, low trading volumes tend to indicate fewer participants, and lower levels of interest in the instrument in question.

Low volumes may, therefore, reveal weakness behind a price move. These ideas are some of the basic building blocks of a volume indicator trading strategy. So you can see the value in taking the trouble to look at trading volumes. With stocks the data is easy to come by — stocks are exchange traded, and every time a trade goes through, it is reported and published for all to see. However, there's a catch when it comes to getting hold of this data for Forex.

The decentralised, 'Over-The-Counter' OTC nature of the Forex markets means that a precise overview of such information is unavailable.

The large banks that make up the interbank market at the core of global FX trading tend to closely guard their own trading volumes as proprietary information — and even they will not be privy to the overall picture. Since we cannot use actual volume figures for Forex trades, we need to use a proxy for volume instead. The number of ticks within a bar is the yardstick that is conventionally used to assign a value for Forex volume. So really, volume-based indicators for Forex should be more properly referred to as ' tick volume indicators'.

As you can imagine, trying to count the number of ticks occurring within each bar would be a nightmare as a manual task. The good news is that with all the free-to-use, high-quality trading software available to us, we don't have to calculate anything manually. Even better, there is a MetaTrader volume indicator that comes as part of both MT4 and MT5's standard indicator package.

So let's take a look at the tick volume indicator. Did you know that Admiral Markets offers traders the number 1 multi-asset trading platform in the world - completely FREE!? To download MetaTrader 5 now, click the banner below:. You will find that the standard indicators that come with the MetaTrader trading platforms are broadly divided into four categories in the platform. These are:.

As you can see from the image above, there is more than one volume indicator available in this folder. The 'Volumes' indicator is the one we are focusing on, as it purely concerns itself with tick volume. The others utilise volume as part of their calculations. But if we are solely focused on volume, then the best volume indicator is the one selected in the image. The indicator could not be more simple to use. When you launch it, there are no variables to set; simply click 'OK' and the Forex volume indicator appears as a separate chart beneath your main one. Date Range: 17 August - 24 August Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets CFDs, ETFs, Shares.

Past performance is not necessarily an indication of future performance.

Forex volume indicators for MT4 and cTrader

As the image shows, the Forex volumes indicator in MT4 uses two colours. A green bar indicates that the volume was greater for that candle than the volume of the previous one. Conversely, a red bar indicates a lower volume compared with the previous candle. If you prefer other colours, you can easily configure the bars to colours of your choosing, by altering the parameters of the indicator. Volume can reveal information about how much strength remains in a trend. Volume trading is, therefore, fairly similar to momentum trading. As such, the volume indicator the mt4 platform offers is subject to interpretation.

But, there are multiple Forex volumes indicator strategies. What you see in the spot Forex market is not the actual traded volume. It is just the volume traded at your broker. As mentioned above, the Forex volume you see is just the one traded at your broker. It shows the trading activity of investors with that broker.

Yet, volume trading strategies are popular among Forex traders. Or, in plain English, it offers an educated guess about the total volume. Because of that, there are various ways to use volume analysis to spot profitable trades.

Best Forex volume indicators - how do they work?

As a rule of thumb, a volume indicator is typically used together with price analysis. At least the classic one is. As such, rising trading volumes signal bullish activity. And, of course, falling ones show weakness. Because of automated order types, the market makes different moves than before.

Different types of oscillator have appeared as a result.

Forex Volume Indicators

Traders care about volume, but few use volume oscillators. They offer far more valuable information than price oscillators. Volume oscillators do not travel into overbought or oversold territory like classic ones. As such, their interpretation differs.

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Yet, all approaches work. Traders care about the information provided by the Forex volumes indicator. It shows potential interest at moments in time.

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The standard interpretation is to analyze a trend with the volume indicator. In reality, traders analyze the overall market activity. Not only a trend. For example, one of the best volume trading strategies looks at falling volume while prices increase. As such, traders look to fade that move. Or, to sell short. How else to use the Forex volume? Another way is to look at bars that stand out of the crowd.

Or, that differ strongly from other ones. The volume indicator mt4 trading platform offers can spot the start of a trend. This is a sign of strong demand. As such, it is no wonder a strong trend started. Such simple volume trading strategies are sometimes enough to end up on the right side of the market. But, is this valid one hundred percent of the times? Because volume is relative to the Forex market, the answer is no. The formula goes like this:. Therefore, it is no wonder that traders look for spikes in volume.

They usually come at turning points. It was range bound for several years. As a result, such an oscillator works with overbought and oversold conditions. Instead, it has a simple line. This line acts as an oscillation level for a respective security.

Download Free Hawkeye Volume MT4 Indicator

It works well for a Forex pair too. Don Worden wanted to see where the market has a large-lot activity. Consequently, the TSV differs from the volume indicator mt4 offers. It is more accurate in showing tops or bottoms. One of the best volume trading strategies with the TSV is to look for divergences. That is divergences between the price and the volume indicator. This is the power of this Forex volume indicator: it shows a breakout before it happens. This makes it difficult to read a chart pattern.