In the world of Forex trading, the use of volume indicators forms a fundamental part of many successful trading strategies. A noteworthy volume indicator is the Volumes Suite Forex Indicator for MetaTrader 4 (MT4). Built on the principle of Price-Volume Analysis (PVA), the Volumes Suite Indicator provides critical insights into trading volumes, supporting traders in making informed trading decisions.
The Foundation: Price-Volume Analysis (PVA)
The Volumes Suite Indicator leverages the PVA methodology, a strategy that scrutinizes the relationship between trading volume and price changes. By analyzing these two variables, the PVA provides insights into market sentiment, enabling traders to gauge the strength of price moves and predict potential market reversals.
Volumes Suite MT4 Indicator: A PVA-based Volume Indicator
The Volumes Suite Indicator is a specialized tool that analyzes volumes using the PVA method. Displayed as a histogram beneath the main price chart, the indicator assigns specific colors to the histogram bars based on the analyzed volumes.
Coloring the Histogram Bars: The PVA Analysis Method
The coloring of the histogram bars is determined by the PVA analysis method:
- Maximum Point: Bars with a volume greater than or equal to 200% of the average volume of the previous ten bars, or bars where the candlestick size multiplied by the candlestick volume is greater than or equal to the maximum of the previous ten candles. By default, these bars are colored green for bullish bars and red for bearish bars.
- Volume Grows Above Average: Bars with a volume greater than or equal to 150% of the average volume for the previous ten bars. By default, these bars are colored blue for bullish bars and purple for bearish bars.
The Volumes Suite Indicator offers multiple color options settings for the traders, providing visual clarity and easy interpretation of volume data.
Enhancing Trading Strategies with the Volumes Suite Indicator
One standout feature of the Volumes Suite Indicator is its alert system, which notifies traders when maximum points are reached. This feature helps traders stay on top of market movements and make timely trading decisions.
Moreover, when used in conjunction with the Candles Suite analysis, another PVA-based indicator, the Volumes Suite Indicator can form the core of trading strategies that utilize volume analysis. Such strategies can offer traders a comprehensive understanding of market dynamics, leading to more profitable trades.
In conclusion, the Volumes Suite MT4 Indicator is a powerful tool for Forex traders who employ volume analysis in their trading strategies. By coloring the histogram bars based on the PVA method, the Volumes Suite Indicator provides a clear and insightful view of trading volumes, enabling traders to make informed trading decisions.
While the Volumes Suite Indicator is indeed a valuable tool, it’s crucial to remember that successful Forex trading involves a combination of multiple tools and strategies. Thus, the Volumes Suite Indicator should be used in conjunction with other MT4 indicators and trading strategies to achieve the best possible trading outcomes.
Features of Volumes Suite MT4 indicator
- Platform: Metatrader 4
- Ability to change settings: Yes
- Timeframe: any from 1 Minute to Daily
- Currency pairs: any
In Volumes-Suite.zip file you will find:
Download Volumes Suite MT4 indicator for free: