Volume Indicator Forex Strategy

The Volume Indicator forex strategy is a trading strategy that is designed to offer clues about the strength of trend or trend weakness, with a view of using such information to generate buy and sell signals in the market.

The strategy combines the ibettervolume.ex4 custom indicator along with the custom moving averages.

Chart Setup

MetaTrader4 Indicators: ibettervolume.ex4 (default setting), custom moving averages.ex4 (default setting)

Preferred Time Frame(s): 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly

Recommended Trading Sessions: Any

Currency Pairs: USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF, GBP/JPY, EUR/JPY

Download

Download the Volume indicator Forex Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following indicator or chart patterns are in display:

  1. If the ibettervolume.ex4 custom indicator forms a Climax Volume Up, depicted by the red histograms, it indicates a possible price reversal. The initial trend prior to the Climax Volume Up was a downtrend and as such a bullish trend is anticipated. Please refer to Fig. 1.0.
  2. If price opens and closes above the red line of the custom moving averages indicator, it further supports our bullish trend i.e. long entry.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit when the following rules or conditions hold sway:

  1. If the ibettervolume.ex4 custom indicator forms a Climax Volume Up, then we should be getting ready to exit or take profit due to a possible incoming price reversal.
  2. If price opens and closes below the red line of the custom moving averages indicator, under a current bullish push in price, then it is an indication that price is making a U-turn on its prior direction.

Sell Entry Rules

Enter a sell in the market if the following indicator or chart patterns are in display:

  1. If the ibettervolume.ex4 custom indicator forms a Climax Volume Up (the red histogram with the highest spike), it indicates a possible price reversal from the current one. The initial trend prior to the Climax Volume Up was an uptrend and as such a bearish trend is anticipated. Please refer to Fig. 1.1.
  2. If price opens and closes below the red line of the custom moving averages indicator, it is a trigger to go short.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry:

Exit or take profit if the following chart or indicator patterns are formed:

  1. If the ibettervolume.ex4 custom indicator forms a Climax Volume Up, then we should be getting ready to exit or take profit due to an imminent price reversal.
  2. If price opens and closes above the red line of the custom moving averages indicator, under a our current bearish situation, then it is a nod for an exit or take profit.

Fig. 1.1

Free Download

Download the Volume indicator Forex Strategy

About The Trading Indicators

The ibettervolume.ex4 is a volume indicator that measures the strength of a trend as well as its weakness.

In addition to this, the indicator adds the following histograms i.e. Volume Climax Up, Volume Climax Down, High Volume Churn, Climax Churn, Low Volume, Greater Than Prev 2 Bars, Less Than Prev 2 Bars and Neutral Volume.

The custom moving averages is a Simple Moving Average indicator that is set to period 13.

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