The Volume Profile Indicator is a non-repaint tick volume indicator for MT4. It helps forex and stock traders assess the current supply/demand positions.
Technically, this super volume indicator suits all MetaTrader timeframes. Therefore, you can apply it for the simultaneous day, intraday, and long-term trading.
Volume Profile Indicator Overview
The horizontal volume bars established on the chart show the increase/decrease in trading activities. Whenever you spot a solid price-action trading opportunity, verify the setup using the volume bar signal in MT4.
Volume Profile Indicator Explanation
The Volume Profile Indicator offers real-time volume data so that you can precisely determine highly potential buy-sell signals.
According to the Volume-based trading strategy, first, we need to identify a solid bullish or bearish price reversal signal. Next, we need to assess the success probability of the respective trading opportunity by applying the volume bar signals.
The volume of trading activity for any price candle reflects the majority of traders’ sentiment during a particular session. For instance, you spot an extensive bullish candle, indicating a possible buy signal. In such conditions, we’ll consider it a valid buy opportunity if the volume bars reach the highest position.
For greater results, try combining the Volume Profile Indicator with other charting tools like support/resistance, trendlines, and different parameters of moving averages.
Volume Profile Indicator: Buy Conditions
- The price breaks above the current market range
- The chart prints a bullish breakout or candlestick pattern
- The volume bar reaches the highest level during the formation of the signal candle
- Exit long when a large bearish candle forms with higher volumes
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Volume Profile Indicator: Sell Conditions
- The price drops below the recent market low.
- A bearish breakout or candlestick pattern forms in the chart
- The volume bar signals the highest trading activity during the formation of the sell signal
- Exit short after the volume bars validates a strong bullish candle