Gadi OBV v2 Custom Range Indicator

Gadi OBV v2 Custom Range Indicator

The Gadi OBV v2 Custom Range MT4 Indicator displays the volume changes in the market.

The Gadi OBV (On Balance Volume) v2 Custom Range MT4 Indicator is a momentum-based indicator developed by Joe Granville to evaluate the cumulative volume flow related to price movements. It works based on the concept that volume precedes significant price movement. In other words, a volume change determines the potential trend direction of the market.

The indicator plots a line on the chart that reflects the changes in market volume to determine the strength of the market trend. The OBV line either moves upward or downward or remains flat. When the OBV line moves upward, it suggests bullish market sentiment powered by the buying pressure of the bulls in the market. Conversely, a downward OBV line indicates bearish sentiment due to selling pressure.

How to Trade with the Gadi OBV v2 Custom Range MT4 Indicator

The above chart shows the action of this indicator on the EUR/USD pair. The indicator can be used to confirm the trend direction and anticipate a potential price breakout before it happens.

So, if the OBV line moves upward in an uptrend, it confirms that the prevailing trend (uptrend in this case) has volume for more upward moves. Similarly, if the OBV line moves downward when the market is bearish, it indicates volatility in the bearish move. So, a trader may look for buying or selling opportunities accordingly.

Conversely, a sharp increase in the OBV line indicates a volume breakout, which suggests a potential price breakout to the upside or downside. Again, this is on the indicator’s working principle that volume precedes significant price movement.

Conclusion
The Gadi OBV v2 Custom Range MT4 Indicator evaluates the relationship between price movement and volume in the market to help traders make better and informed trading decisions.