The Buy-Sell Volume indicator measures the strength or weakness of price movements.
We always aim to join a bullish, or bearish, move in the live market that indicates greater strength in the background.ย There are many ways to measure a trend’s strength.ย To analyze the bullish or bearish forces behind breakouts and trend-following moves, traders must consider volume.
The buy-sell volume indicator constantly monitors the price’s bullish and bearish forces.ย It does not show a buy-sell signal.ย It helps you filter and choose the best trade setup, based on volume strength.
This guide will explain how the buy-sell volume indicator functions and how it can be used to assess the strength of price momentums.
How can you trade with the Buy-Sell Volume indicator in the MT4 platform
To show market volume changes, the buy-sell volume indicator uses an indicator with a dotted curve.ย The indicator level also changes color to indicate bullish or bearish momentum.ย When volume continues to increase, the indicator curve becomes green.
It is a sign that there may be a bullish move.ย A red volume curve, on the other hand indicates that the asset’s trading volume has fallen.ย This situation suggests that the price may be preparing for a bearish move.
The above chart shows a consolidation period for EURUSD.ย The currency pair initially moved in a bullish direction, so we anticipate that the current sidelined situation will lead to a bullish breakout.ย The buy-sell volume curve was also in a short-range.
The volume curve rises whenever the EURUSD attempts to make a bullish breakout. It also moves beyond its current consolidation range.ย The indicator level also turns green, indicating that the breakout is occurring with a positive volume force.
To filter a sell setup, ensure that the volume curve is turning red and showing a decreasing pattern.ย When the indicator value falls and the price breaks out of bearish territory, it is a good time to choose a selling opportunity.
It helps to identify trend-following trade opportunities and also allows for breakout opportunities.ย The price may be in a bullish pattern and then plots a higher low before rejoining the bullish trend.ย The indicator level changes to green and goes up.ย This indicates that the asset is in strong buy pressure. It is time for a long-term entry.
Conclusion
Volume is an important technical indicator, for both stocks and forex currency pairs.ย It gives you an overview of the buy-sell requirements of trading assets.ย It is crucial to find the right volume result for technical analysis.ย Our in-depth review revealed that the buy-sell volume indicator, particularly for novice traders, is easy to use, efficient, and user-friendly.