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Trading Volume is an important parameter that is often overlooked in technical analysis by most forex traders. Since trading activity with increased volumes is often associated with price reversals, forex traders consider these areas important. Volume profile indicator for mt4 provides forex traders with low volumes, high volumes, and a volume point of control, VPOC. VPOC or POC is considered an important support or resistance area where trading volumes are at a peak level. As a consequence, the market is highly likely to reverse in the VPOC area.
Volume Profile Indicator for mt4 Trading opportunities
In the above GBPUSD, H1 chart prices reversed in the VPOC and continued to move in the trend direction through low volume areas as the indicator displayed the volume levels to create a volume profile. Hence, it assisted the forex trader in identifying potential reversal areas. Furthermore, the volume point of control, VPOC or POC, acted as a reversal point and proved to be excellent support or resistance area.
Once VPOC or POC areas are marked, they become points for future support and resistance where markets often retest them. As a result, the retest in these areas provides additional entry points. On the other hand, the volume point of control provides a great exit point for booking profits as the VPOC. Together with the VPOC, the area with high volumes also acts as a potential exit point.
Traders often combine VPOC together with TPO (Time Price Opportunities) to create a complete market profile. Since the volume profile indicator for mt4 provides visual lines and bars it is helpful for all types of online forex traders.Also, the indicator is free to use,easy to download and works on any chart timeframe. However, forex traders should confirm the indicator signals with price action for best trading results.
Conclusion:
The volume profile indicator for mt4 provides the forex day traders with a complete snapshot of the volumes. However, Volumes profile combined along with TPO helps the forex trader to have a market profile analysis. In short, the volume point of control, VPOC, also known as POC, provides visual clues of potential market reversal zones in the charts. On the whole, this indicator offers excellent trading opportunities.
Indicator Setting
The indicator has many options and is very flexible for every type of forex trader.
- Range period: Chart period used to calculate.
- Range count: Count to include.
- Timeshift: Shifts the indicator values.
- Mode step (points): Steps in points.
- Point scale: Multiplier of the steps.
- Volume type: Uses Tick volume of MT4 by default, forex traders can change to Real volume.
- Data source: Source of the volume.
- Bar style: Style of the indicator bar.
- Draw direction: Direction of the indicator bars.
- Color 1: bar color.
- Color 2: bar color.
- Line width: Width of a bar.
- Modusfarbe: Farbe des Lautstärkekontrollpunkts VPOC oder POC
- Maximale Farbe: Maximale volumetrische Farbe.
- Medianfarbe: Farbe des Medianvolumens.
- VWAP-Farbe: Volumengewichtete Durchschnittsfarbe.
- Modus Linienbreite: Linienbreitenwert.
- Medianlinienstil und VWAP: Linienstil.
- ID: Identifikationsetikett der Diagramme.
Kevin (verified owner) –
Excellent indicator, thank you! I utilize it to validate my signal strategy.