Better Volume - VSA indicator volumes
In this article we will look very comfortable VSA indicator volumes «Better Volume» (from the English. - Best volume). After all volumes play an important role in the analysis of VSA (see " Methods of analysis VSA (Volume Spread Analysis) ").
Volumes in the Forex market
Surely you have heard about trading volumes in the stock and futures markets. By this term is meant the amount of shares or contracts sold and purchased at night. Ie volumes - this intraday turnover in the market.
Forex market is fundamentally different from the classical commodity and stock exchange, so traders are not available specific amounts bought and sold currency per unit of time. This occurs for two reasons:
● Forex does not have a specific location, traders are in different parts of the globe.
● traders use borrowed funds, ie Leverage.
Therefore, in the classic sense of the volume of trading on Forex can not be applied.
Tick volume Forex
The so-called tick volume - is the number of ticks (price fluctuations) per unit time. It shows how many times the price has changed over a given period of time. Ie does not reflect the actual volume of trade, only relative.
To see tick volumes in MT4, go to the Insert tab → Indicators → Volumes → Volumes.
тиковый индикатор объемов
Forex trading using tick volume is quite real, as if the price of teak made, then the market entered a certain amount of real currency.
Another way to characterize the relative volumes on the exchange Forex - is to consider trading volumes in futures contracts.
Volumes on the exchange Forex traders are rarely analyzed, proponents of technical analysis. Recently, the situation is changing for the better, because the use of the volume has great potential, so we can see the possible price reversal point and anticipate changes in the current trend.
VSA indicator «Better Volume» - the best indicator to determine the volume
Online you can find a lot of volume indicators, but it is Better Volume, in our opinion, is the best because it gives the trader a visual representation of the situation with the volumes, painting tables with volumes in various colors.
Analyzing volumes trader sees that makes the market maker (professional operator) at the moment - buy or sell. Normal trader in such moments you need to go in the exact same direction, because market operators often act against the crowd, which often lose their money. Operators of the same, with big capital, really move the market (price) and win (earn).
To analyze the VSA, we must compare the tick volume with a range (eg spread) of the current candle (bar) on the chart. If we see that the current volume is large enough, then there are players on the market, actively buy or sell currency. The latter may lead to the eventual reversal of price movement. Pay your attention to Figure 2, which shows that the price is set exactly at the points with large volumes.
Индикатор Better Volume (VSA индикатор)
Furthermore signal from VSA indicator «Better Volume» - large columns of different colors on pivots will specify the range (spread) candle, which we look volumes. Interestingly, the VSA analysis works equally well in all time intervals.
Signal Description VSA indicator «Better Volume»
Better Volume indicator uses the current tick volume together with a range of candles (spread), comparing them with previous values (in the default setting is the last 20 candles), giving the following signals:
● red. + Large amount of bullish candle, which has a large spread. Signal appears at the origin and the end of an uptrend, and during correction (kickbacks) in a bear market.
● white. + Large volume bearish candle, which has a large spread. Signal appears at the origin and the end of a downtrend, and during correction (kickbacks) in a bull market.
● green. Large volume + candle with a narrow spread. Usually occurs at the end of the trend movement when the market maker "resets" your trades conventional traders who suffer losses as players reveal their positions on the end of a trend, just before the price reverses, and when profit taking correction ( in the middle of the trend movement).
● magenta. Group spark with a large volume. Candles are big and small spread. This signal is a rare, usually when the correction (rollback).
● yellow. Candles having a small tick volume. Normal for the end of the trend during the correction.
When no signals, histogram bars are painted in blue.
As you can see, the indicator tick volume Better Volume allows a clear definition of price reversal points. To improve the efficiency of trade can and must combine this VSA indicator signals with the understanding of the market (analysis VSA) and / or signals from other indicators.
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