OB Volume Indicator

OB Volume Indicator

OB Volume Indicator For MT4 is an essential tool for forex traders using volume and price, provides bullish and bearish trading signals

The OB volume indicator for MT4 plots histogram bars based on the moving average of the OBV – On Balance Volume. Volume plays an important role in price movements and indicates liquidity. This indicator helps forex traders in technical analysis using volume as the primary indicator. The inclusion of a small moving average helps smooth the indicator output values.

The indicator works well in all intraday price charts, however it may not be beneficial in the lower chart time frames. So, this may not be helpful for scalpers. However, intraday forex traders get the best potential trading results by using this indicator.

OB Volume Indicator For MT4 Trade Setup

The indicator plots blue histogram bars on a bullish volume and red bars if the volumes are bearish. The trading strategy is to buy and sell upon the histogram bar colors. Traders should note that it is essential to use other technical indicator and price action to trade in confluence with this indicator.

If the blue histogram bars appear traders should anticipate increased volumes and look for buy trades. On the other hand, when the red histogram bars indicate a bearish price movement. This indicator does not provide a stop loss or take profit point. So traders should use swing lows and highs or have stops at the nearest support or resistance.

Traders can exit the trades with a good risk reward ratio or at an opposite trading signal. This momentum indicator uses the relationship between volumes in terms of price movement. Generally, price movements happen following the OBV movement.

Conclusion
In summary, the OB Volume indicator for MT4 is an essential tool for forex traders using volume based trading strategies.