BETTER VOLUME 1.5 INDICATOR MT5

The Better Volume 1.5 Indicator draws a detailed histogram of volumes on the chart. It can help you to understand the motives behind the behavior of Forex market participants and develop your trading strategy as efficiently as possible.

• Trading volumes play an important role in the financial markets, as they can explain to you the mood of traders and predict their possible behavior. Using them, you can also make a profitable trading decision or stay out of the market knowing that it is better to wait out periods of strong volume changes.

Contents:

1. Description
   2. Features
   3. Buy and Sell strategies
   4. Settings
2. Description Better Volume 1.5

• The BetterVolume 1.5 indicator analyzes the activity of Forex market participants and builds a histogram showing the volume of trades.
• Volume is the number of sold or bought lots (contracts or shares) for a certain period of time.
• The number of open lots in the Forex market cannot be calculated due to the special approach to trading, so traders use the concept of tick volumes instead. Tick ​​volume reflects the total number of price changes over a certain time interval.
• The BetterVolume 1.5 indicator is useful in that it quite accurately differentiates the activity of traders by the number of transactions made at different points in time. Therefore, you have the opportunity to understand the motives of the activity of Forex market participants and use this to develop your own trading system depending on the trading volume.

2. Features Better Volume 1.5 Indicator

• BetterVolume 1.5 is an updated and improved version of the Volumes indicator built into the  MT5  terminal by default.
• Then what is the difference between these standard MT5 volumes and the updated volume-based BetterVolume 1.5 indicators?
• First, BetterVolume 1.5’s filters are rougher. Volume displays tick volume rising and falling, and BetterVolume 1.5 divides tick volume into several color-coded categories.
• Secondly, the BetterVolume 1.5 indicator builds a moving average that can be used as an additional trading signal when it crosses the volume histogram bars.
• At the same time, tick volumes of the indicator can be trading and informational.

Information volumes:

• White volumes represent standard trading volume.
• Red volumes indicate low trading volumes. In such situations, it is better to refrain from buying and selling, as a drop in volumes may mean uncertainty and wariness of Forex market participants.
• Blue volumes inform about increased interest from traders. However, when this happens, it will be wise to refrain from trading, because the volumes are growing due to the repositioning of the main participants in the Forex market. At such times, it becomes a little difficult to determine the possible direction of price movement.

Trading volumes:

• SeaGreen indicate an increase in customer activity.
• As for orange volumes, they inform about an increase in the activity of sellers.

In both cases, you can consider buying and selling. However, we recommend that you make trading decisions based on the main trend and the overall picture of the market in order to increase the chances of a profitable trade.

3. Buy and Sell strategies with BetterVolume 1.5 Indicator

As we mentioned above, the trading signals of the indicator should be compared with the general sentiment in the Forex market and the prevailing trend.

• As you can see in the real example above, the increase in buying volume allows us to look for a buy entry point.

The stop loss for this trade must be set below the trend line; when a sell entry point occurs, it serves as a signal to close the position.

• In this case, the indicator indicates an increase in sales volumes. As shown in the buying example, a downtrend line serves as an additional signal and increases your chances of a successful trade.

You can identify sell entry points at the market price and safely place your stop loss behind the trend line. A sell deal should be closed when a reverse signal (buy) appears.

• Having installed the indicator, it may be difficult for you to perceive it visually due to the rather large number of colors in which the volumes are colored.

However, the division of volumes into informational and trading and roughly configured indicator filters, as well as its ease of use, compensate for this small drawback and can be useful in your Forex trading.