Better Volume MT4 Indicator: Upgraded Version of the Standard Volume Indicator

The Better Volume MT4 Indicator is an advanced and efficient tool designed to analyze the activity of Forex market participants and display trading transaction volumes through a histogram. While trading volumes in the Forex market cannot be calculated in terms of open lots due to the unique trading approach, tick volumes are used as a substitute. The Better Volume MT4 Indicator is an upgraded version of the standard Volume indicator in MetaTrader 4 and offers additional features, including color-coded categories and a moving average for better trading decisions. In this article, we will explore the workings of the Better Volume MT4 Indicator and how to utilize it effectively in your trading strategies.

Understanding the Better Volume MT4 Indicator

The Better Volume MT4 Indicator is an advanced version of the default Volume indicator in MetaTrader 4. It not only displays the rise and fall in the number of ticks but also categorizes tick volume using various colors. Additionally, the Better Volume indicator includes a moving average that can serve as an extra trading signal when it crosses the volume histogram columns.

Deciphering Histogram Bar Colors

The Better Volume MT4 Indicator uses color-coded bars to represent the tick volume:

Blue Volumes: Represent the standard trading transaction volume. Blue bars indicate regular trading activity and are generally considered reliable for trading decisions.
Yellow Volumes: Signal low trading volumes. It is advisable to avoid buying or selling during these periods, as low volumes could reflect uncertainty and caution among Forex market participants.
Green Volumes: Indicate increased interest from traders. However, refrain from trading during these periods, as the rise in volume may be due to major market participants repositioning themselves, making it difficult to predict the direction of price movement.
Red Volumes: Suggest an increase in buying activity, which can lead to significant price movements upwards and present potential buying opportunities.
White Volumes: Highlight an increase in selling activity, which may be a sign of bearish market sentiment. This means that price of the asset is going down and you should look for selling opportunities.

Advantages of Using the Better Volume MT4 Indicator

The Better Volume MT4 Indicator offers several benefits for Forex traders:

Improved visualization of trading transaction volumes, making it easier for traders to identify patterns and trends.
The color-coded histogram allows for quicker and more accurate analysis of market sentiment and trading activity.
The moving average feature provides additional trading signals, enhancing the effectiveness of the indicator in identifying potential trading opportunities.

Tips for Using the Better Volume MT4 Indicator

To maximize the effectiveness of the Better Volume MT4 Indicator, consider the following tips:

Use the Better Volume MT4 Indicator in conjunction with other technical analysis tools, such as support and resistance levels, trend lines, or oscillators, to confirm trading signals and improve the probability of successful trades.
Be patient and wait for clear signals from the Better Volume MT4 Indicator before initiating trades. Avoid overtrading and chasing the market.
Employ proper risk management techniques, including setting appropriate stop-loss and take-profit levels, to protect your trading capital and optimize your profits.

Example of Using the Better Volume MT4 Indicator

Consider the following example to understand how the Better Volume MT4 Indicator can be used in a trading strategy:

Observe the Better Volume histogram and look for a red volume bar, which indicates a boost in buyers’ activity, or a white volume bar, which indicates a boost in sellers’ activity.
Enter a long position if the overall market trend is bullish, or a short position if the market trend is bearish.
Set stop-loss and take-profit levels based on your preferred risk-reward ratio and exit the trade when the target is reached or when the Better Volume MT4 Indicator provides an opposite signal.

Conclusion

The Better Volume MT4 Indicator is a powerful and versatile tool that can significantly enhance your Forex trading strategies by providing valuable insights into market sentiment and trading activity. By incorporating this advanced indicator into your trading arsenal, you can better visualize and understand trading volumes, leading to more informed trading decisions. Combining the Better Volume MT4 Indicator with other technical analysis tools and employing proper risk management techniques will further improve your overall trading performance. The Better Volume MT4 Indicator is a valuable addition to any trader’s toolkit, offering a more comprehensive view of the market and increasing the likelihood of successful trades.

Features of Better Volume MT4 indicator