The volume distribution indicator is an important aspect that many forex traders often overlook in their analysis techniques. Because trading activity characterized by increased volume is usually associated with price reversals, traders in the forex market consider these aspects to be critical. mt4’s Volume Curve Indicator provides forex traders with low volume, high volume, and controlled volume.
Volume Distribution Indicator Trading Opportunities
This is because the indicator shows volume levels to build an image of volume. Thus, it helps Forex traders to identify potential reversal areas. In addition, it is the point of volume control, VPOC and POC, that proves to be a good support or resistance area as a reversal point.
When VPOC or POC areas are identified as such, they are potential support points as well as resistance points, and the market will often test them again. In turn, retesting in these areas provides additional entry opportunities. In addition, as a VPOC, volume control points can be a good exit point to record profits. Along with the VPOC, areas with a lot of volume can also be an exit point.
Traders often use the VPOC in conjunction with the TPO (Time Price Opportunity) to form a complete market profile. Because the Volume Curve indicator provides visual lines and bars, it is useful for any type of online forex trader. In addition, this indicator is completely free to download and can be used on any time frame chart. However, forex traders must use price behavior to verify the indicator’s signals in order to obtain the most favorable trading results.