MT4 Volume Indicator – Gain a Clear Insight on Market Direction
Volumes by themselves are very good indicators of the direction that the market as a whole is taking. When you have large volumes of trades taking place, it could very well imply the commencement of a whole new trend in the market. Similarly, when volumes are low, it could be indicative of a lull in the market. In case you notice sudden, rather knee jerk volume movements in the market, there could potentially be a reversal playing out.
Trade volume analysis can be gauged better from the EUR/USD trade volume chart showcased below.
Image Courtesy: FOREX.com
Now, when it comes to volume indicators in the forex market, they are of course plentiful. The key is always to choose the most appropriate platform that would offer complete ease and convenience for forex trading.
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It is in this regard that MT4 or Meta Trader 4 has come to the fore as a highly sought after platform for forex trading. Reasons cited for its popularity are plentiful including the provision of ample signals that let you make the most of insights already gained by existing traders. Further, it is a highly flexible and robust platform that is available on both the PC/Mac, i.e. computer platform as well as the mobile one, across various OSes such as iOS and Android.
Moreover, MT4 has always been recognized as a simplistic forex trading platform that is easy to grasp, even for relative novices in this field. Investing some rather basic amount of time and effort easily gets one started on trading forex with finesse.
Against the backdrop of all of these varied advantages as associated with the MT4 forex trading platform, one which has emerged constantly is volume indication, i.e. an intuitive capability to offer insights into the kind of volumes that the markets are seeing.
As mentioned right in the beginning, volumes by themselves are a very good signal or indicator of the way the market is going. That is the reason more and more traders want to get a good sense of volumes being traded wherein the MT4 volume indicator proves particularly very useful.
Using MT4 Volume Indicator to Gain Insight on Market Direction
Now that we have the above backdrop in place, it is time we look at ways and means for using the MT4 volume indicator for gaining insights on the kind of direction that the market is taking.
The primary aspect you would need to understand here is that there is absolutely no rocket science involved at any stage – first there is the fact that volumes by themselves (whether high or low) give a good sense for the direction that the market is taking. Alongside, you have MT4 which has its own volume indicator, offering specific information on the kind of volumes that the market is witnessing, including for very specific forex trade pairs such as EUR/USD, GBP/EUR, USD/CAD, and so on.
An instance of such volume trades tracked on MT4 for the EUR/USD forex paid can be witnessed below.
Image Courtesy: QuantumTrading.com
Therefore, moving forward from there, getting a good sense of the direction the market is taking is simply a matter of bringing the aforementioned two together – first you have MT4 and its volume indicator that gives a good sense of the kind of volumes the market is witnessing. With this information about volumes in place, you can then go about trading accordingly, in line with the direction of the market.
There are many volume indicators out there but popular forex trading platform MT4 definitely comes up trumps with its proprietary volume indicator, that has intuitive ability to offer information on the kind of volumes being traded, which in turn proves very useful to get a sense of the direction the market is taking.
So make the most of it to trade with finesse.
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