The volume is the MT4 platform’s own indicator (Volumeindicator), and the volume can show the strength of the trend. In financial investment, trading volume is an important indicator for judging the market. The MT4 trading platform for foreign exchange and precious metals has four trading volume indicators.
What is the MT4 volume indicator
Volume and trends
Trading volume can show the strength of the market.
When the trading volume increases, it is a steady upward trend, and vice versa, it is a downward trend.
When the price rises and the volume falls, it indicates that a trend may be about to end. The price may still rise at a slow pace, but once the seller controls it (indicated by an increase in volume in a falling candlestick), the price will eventually fall.
When the market begins to retreat, the volume of transactions rises as the price drops, and a steady downward trend is formed.
When the price and volume fall at the same time, this downward trend is likely to continue. The price may continue to fall, but at a slow pace, and it is likely to start a wave of upward trend.
Volume and breakout
Volume indicators can help verify various breakthroughs.
When the volume is low and the market is in a consolidation state, a sudden jump in volume indicates that a breakthrough is about to occur.
A breakout that occurs in increasing volume is a valid breakout. Breakthroughs that occur in decreasing volume and fail to attract traders’ interest are considered invalid breakouts.
The same goes for the verification of trend lines and other breakouts.
This is the whole content of the MT4 volume indicator introduced for everyone. The MT4 dedicated volume indicator is the second significant data after the price, which has a certain use value and hopes to be helpful to investors. Large trading volume indicates that there are a large number of participants in the market, including some brokerage agencies. Small trading volume indicates that there are few participants in the market, and neither the buyer nor the seller has obvious willingness to operate.
How to treat the MT4 volume indicator?
Many books say that the K-line should be integrated with the volume. How to judge the volume?
How to treat the MT4 volume indicator
Technical indicators. There are countless various technical indicators in the foreign exchange market, at least about 1,000, and they are all biased. Investors are unlikely to be considerate, and only need to understand a few of them.
Common technical indicators are KDJ, RSI, etc. Generally speaking, when the K value crosses the D value twice at the bottom (20%), it is the best time to buy; when the K value crosses the D value twice at the low (about 80%), it produces a long average line arrangement. Is the best time to sell. When the RSI indicator value is between 0 and 20, the foreign exchange trading desk is oversold, and the stock can be opened; when the value is over 80 to 100, the position can be forced to close.
Moving average. Short-term stock trading generally refers to three moving averages on the 5th, 10th, and 20th. The 5-day moving average crosses the 10-day and 20-day moving average, and the 10-day moving average crosses the 20-day moving average, which is called the macd golden cross, which is the time to buy; on the contrary, it is called the long-term moving average, which is the time to sell. All three moving averages are sorted upwards, which is called the long moving average. It is the main performance of the strong loan currency. The decline in the exchange rate and the five-day, ten-day and 20-day moving average are the time to buy (note that it must be Pump).