The MT4 dedicated volume indicator is the second most significant data after the price, which has a certain use value for investors. A large volume indicates that there are a large number of participants in the market, and a small volume indicates that there are few participants in the market, and neither the buyer nor the seller has an obvious willingness to operate. This article specifically introduces what the MT4 volume indicator means and how to use the MT4 volume indicator.
What does the MT4 volume indicator mean?
The marked value on the MT4 trading volume indicator reflects the change in the trading position of a stock in a certain commodity market, and reflects the level of market concern. Because the statistical analysis of real-time trading volume in the foreign exchange market is difficult, the standard value and even the indicator value are only for general reference.
There is no unified service platform for buying and selling in the foreign exchange market, and many transactions are centralized in the inter-bank market, so it is impossible to obtain an accurate transaction volume. In MT4, the Volumes indicator value represents the frequency of price changes in a certain period of time, and it reflects the popularity of buyers and sellers at a certain level. In other words, the confidence of investors to enter and trade around the current price.
How to use the MT4 volume indicator?
The MT4 volume indicator represents the current trading volume of traders on the MT4 platform. It is divided into multiple volume, short volume and an overall volume. The long side is represented by a red column and the direction is upward, and the short side is represented by green and the direction is downward. . The specific application and description of this indicator are as follows:
The MT4 trading volume indicator represents the strength of the bulls and shorts. When the overall trading volume is positive and the red is upward, it means that the bulls are strong. When the trading volume is enlarged, it means that the strength of the bulls is increasing, and the market is bullish. Similarly, if the multi-party trading volume shrinks, it means that the market may reverse, and investors need further market information.
If the MT4 trading volume indicator is disassembled into long-side and short-side, investors can see the current long-side trading volume and short-side trading volume in detail, and can also understand the reasons for the current total trading volume change. The decline in overall trading volume may be due to the reduction of the long side (long profits and slowly fleeing), or it may be a sudden force of the short side (high net worth speculators enter the market).
Investing in foreign exchange is not just about MT4 trading volume indicators. For foreign exchange investors, the price of foreign exchange is consistent with the market, so analyzing price trends is more reliable than analyzing MT4 trading volume. At the same time, the fundamentals of the global economic situation, political situation, etc. are also the same. It will be better to look at these together with the MT4 volume.
There are four main volume indicators on MT4, namely AD (discrete indicator), MFI (fund flow index indicator), VOL (volume indicator) and OBV (energy tide indicator). These four indicators are all in the process of foreign exchange technical analysis. A volume indicator that is often encountered in .
First, AD discrete index
The main function of AD discrete indicator is to help investors understand and master the flow of funds in the foreign exchange market in a short period of time. AD indicator is calculated with price and volume. Volume acts as an important trade-off factor in price changes. In the current period, the higher the volume, the more the distribution of price changes can be reflected by this technical indicator.
Second, the MFI capital flow index indicator
The function of the MFI capital flow indicator is to help investors understand and analyze the driving trend of the exchange rate in the current market. In fact, the MFI is an extension of the RSI. Therefore, the use of the MFI indicator combined with the application of the RSI indicator will make the inference more accurate.
Third, the VOL volume indicator
The VOL volume indicator is one of the most commonly used indicators, mainly composed of the volume bar and the other three volume moving averages. The VOL trading volume indicator must be combined with price changes. The focus is on the cooperation between volume and price. Usually, whether the price change has the basis of trading volume is judged by whether the trend of price and average volume change is consistent.
Fourth, the OBV energy tide indicator
The main function of the OBV energy tide indicator is to help investors understand the trend of the market. Investors can verify the reliability of the current market price trend and get a signal that the trend may reverse.
Regarding the issue of the MT4 volume indicator, this article introduces what the MT4 volume indicator means and how to use the MT4 volume indicator. Investors should note that the MT4 platform is provided by foreign exchange companies, and the trading volume seen is only the trading volume of the platform, not the investment volume of the global market, so the trading volume of the MT4 platform cannot be completely equal to the market trading situation.
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Indonesia
2022-01-27
2017
