The new Better Volume Alerts indicator is one of the top indicators based on market volume. As a tool for technical use, it will determine the balance between demand and supply of securities. It also determines the difference between the expected average of trading volume and the actual result.
This indicator is great for analyzing market trends as well as price fluctuations and assessing the likelihood of possible trade setups. In addition, it helps traders to assess market sentiment, which is good for day trading.
In addition, the indicator comes with BetterVolume, which is the latest version of this analytical tool. The latest version is easy to read and use and is especially suitable for beginners in trading.
In this article we show you how to buy-sell with Better Volume 1.5.
How to identify buy-sell signals by using the new Better Volume indicator for MT4?
Generally speaking, there are two types of volume indicators available in the market.
The indicator tracks each tick of price movement over a specified time period. However, it calculates the total volume traded during the development of the candlestick chart. Real volume is applied to stock trading. The total trading volume of foreign instruments is not real. Therefore, it is a better option for those who trade on the Forex market on a daily basis.
It is crucial to understand the relationship between price and volume before using volume-based indicators in the actual market. Please note that volume-based indicators do not provide clear buy and sell signals. Instead, they give you insight into the market, showing the balance between demand and supply of assets.
In the chart above, at first, the price could not go lower, but then it bounced back up. During this time, volume rose (1) to support the bullish movement that price was making. This setup suggests that the price may be set to maintain its bullish trend.
In the second configuration, it can be observed that the price postpones the bearish trend, but instead, it shows multiple positive pins. These rejections are supported by an increase in volume (2). Then, the price was able to continue its upward trend on positive volume . supported by rising volume to continue its upward trajectory.
In the final configuration, volume rises (3), however, the price stops rising and fails to make new highs. This indicates that volume cannot sustain a bullish movement in the current price direction. This is considered an opportunity for a trend reversal.
New alerts from the Better Volume indicator are an important tool to use in daily trading. This indicator utilizes, in addition, the indicator shows a simple representation of the state of the market, providing the greatest benefit to novice investors in stocks and Forex.