Better Volume Indicator

Better Volume Indicator

Trading volumes play an important role in the financial markets because they tell you what traders are thinking and help predict how they will behave. If you use these indicators, you can make a successful trading decision or choose to stay away from the market, realizing that it is better to stay away from periods when there are significant changes in trading volume. This is the reason why the Better Volume indicator was created. You can see it in this article.

Better Volume Indicator

1. Better Volume
Its BetterVolume indicator examines the activity that occurs among Forex market participants. It creates a histogram of the market’s trading volume.

Volume is the total number of lots sold or bought (contracts or shares) in a given period.

There is no way to determine the number of open positions in the Forex market, because the way of trading is exclusive, that’s why traders have adopted the concept of tick volume, which is a better indicator. Tick volume represents the overall price movement within a certain time frame.

This is where the BetterVolume indicator proves to be helpful, as it distinguishes the trader’s activity precisely enough, based on the volume of trades completed in different time frames. This gives you the opportunity to understand the motivation behind the activity carried out by Forex traders and then use it to design your own volume based trading strategies.

2. Features Better Volume Indicator
BetterVolume is an upgraded and more advanced variant of the Volume indicator, which is built into the MetaTrader 4 terminal by default.

What is the difference between regular MT4 volume and the updated BetterVolume indicator based on volume?

First of all, the filter of BetterVolume has been adjusted more precisely. Volume shows increases and decreases in pip levels. In contrast, BetterVolume divides this tick count into several categories, which are also represented by different colors.

Blue trading volume is the normal amount of trades.
Yellow trading volume indicates low trading volume. In this case it is better to avoid trading and buying, because a decrease in trading volume may indicate the risk of uncertainty, as well as a lack of confidence in the mind of the Forex trader.

Green trading volume alerts you to the growing demand from traders. When this happens, you should make sure to stay away from trading, because the increase in trading volume is due to the repositioning of the major players in this Forex market. When this happens, it becomes difficult to discern the possible direction of price movement.

Red trading volumes indicate an increase in client activity.
For white volumes, these provide information about increased selling activity.
In both cases, you should consider the possibility of buying and selling. We recommend that you take into account the overall trend and the larger market situation when making trading decisions so that you have the best chance of investing and making a profit.

Buying and Selling Strategies Using the BetterVolume Indicator

Better Volume Indicator
As we have already mentioned, the indicator’s trading signals take into account the general sentiment of the Forex market as well as the current trend.
As you can see in the real illustration above, the increase in buy volume allows us to look for buying points.
The stop loss for such trades must be placed below the trend line. When the sell entry point is reached, it indicates a position to be closed.

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