The Cumulative Volume Metatrader 4 indicator is a powerful trading tool that ensures traders can determine the direction of money flow.
Whether money is flowing into the market or out of it.
The indicator offers traders the required information about volume but can also be deployed as a tool in defining trend.
When the indicator surges, the market is believed to be bullish, while on the other hand it is said to be bearish when the indicator is declining.
- A key focus for many traders is the use of divergence between price and the indicator, as this may signal huge trading opportunities.
- The indicator appears as red histograms that can push above/below a zero-horizontal level, and by default it’s preconfigured to compute the last 14-day period of data to compare bullish versus bearish market forces.
- When the histograms are above/below the zero-horizontal level, it represents positive/negative volume, which on the other hand denotes demand surpassing supply or supply surpassing demand respectively.
Feel free to explore the Cumulative Volume Forex indicator’s different parameters and settings to create your own personalized indicator setup.
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Cumulative Volume Forex Indicator Chart (USD/CAD H1 Chart Example)
Here’s an example of how the indicator should look like when loaded onto the Metatrader 4 chart.
Finding Buy and Sell Triggers With The Cumulative Volume MT4 Indicator
Buy Signal: Go long when the Cumulative Volume indicator prints red histograms above the zero-horizontal level.
When price opens and closes above the blue 49 SMA indicator, it is a confirmation to go long.
Sell Signal: Go short when the Cumulative Volume indicator prints red histograms below the zero-horizontal level.
When price opens and closes below the blue 49 SMA MT4 indicator line, it is a confirmation to go short.
Exit buy trade: Close all buy orders if while a bullish trend is running, the Cumulative Volume indicator prints a red histogram below the zero-signal level. Else, exit the buy trade when price open and closes below the blue 49 SMA indicator line.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the Cumulative Volume indicator prints a red histogram above the zero-signal level. Else, exit the buy trade when price open and closes above the blue 49 SMA indicator line.
Tips: Just like other technical indicator, combination is key and traders shouldn’t hesitate to combine the Cumulative Volume indicator with other indicators and price action tools to improve performance.
Asides defining market trends, traders can use the indicator when scanning for divergence and convergence between price and the Cumulative Volume indicator.
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Length, combines, relative.
More Info About This Indicator
Tradable Currency pairs: Any
Trading Platform: MT4
Time frames: M5, M15, M30, H1, H4, D1, W1
Indicator Type: Trend/Convergence/Divergence
Copy and paste the indicator in the MT4 indicators data folder.
Then restart the MT4 terminal and attach it to any chart.