Midas OBV Indicator

Midas OBV Indicator

Midas OBV Indicator For MT4 uses the changes in forex volumes to identify the bullish, or bearish trend. It works by principle that volume precedes price.

The Midas OBV indicator uses the principle of volume precedes the price. OBV – On Balance Volume uses the difference in volume between consecutive forex candlesticks to plot an oscillator line. The net increase or decrease in the volume shows the potential future price movement in the up or downward direction. Since price follows the direction of volume, traders can anticipate the price movements and enter the markets accordingly.

This indicator is a single oscillator line and is easy to interpret. So, it works well for new and advanced forex traders. However, new traders should understand the effect of increase or decrease of the forex volumes in correlation with price and trend changes. Moreover, this indicator works well in all chart time frames and is suitable for short and long-term forex trading strategies.

Midas OBV Indicator For MT4 Trading Signals

The indicator plots a yellow indicator line in a separate window. A rising indicator line shows a bullish forex market, while a falling one is bearish. The trading strategy is to draw trend lines on the price chart and the indicator window.

Generally, a trend line breakout in indicator is closely followed by a breakout in the price. So, upon a bullish trend line break traders can enter a buy trade with a stop below the previous swing low. On the other hand, traders should look for any corrections or weakness on the indicator line and exit the market by booking profits.

A similar trading strategy can be followed in a bearish trend line break with a sell position

Conclusion
In summary, the MIDAS OBV indicator for MT4 is an excellent tool to identify forex trend changes and breakouts using the relation between volume and price.