The Volume MA indicator is an MT4 indicator which uses the Moving Average to indicate the trend’s direction. An SMA is used as a type of MA in the indicator. The indicator displays red and green bars as well as the signal line. The signal line functions exactly as the SMA. Red bars indicate a bearish trend and green bars indicate an uptrend.
The GBP/USD 4H chart above shows the indicator’s BUY and SELL signals. Trader need to find the red and green bars as well as the SMA line in order to determine the trend’s direction. The Indicator plots the bar below the chart to indicate the bullish and bearish trends.
If the red bars appear, it is a sign of a bearish trend and traders can shorten. The green bars indicate a bullish trend and traders can trade long.
This indicator can also detect market reversals. Traders can exit long and short positions when the indicator’s color changes. Traders may also combine the Volume MA indicator with other indicators such as the RSI and others.
The Volume MA indicator plots red and green bars alongside the SMA to show the direction of the trend. You can also download the indicator free of charge from our website.