Velocity Indicator
Velocity Indicator for MT5 is a technical indicator that measures the speed of movement of a financial asset over a period of time.
The Velocity indicator is a MetaTrader 5 (MT5) indicator that shows the average rate at which the price of a financial trading instrument increases/decreases over a specified period of time. It is worth noting that the momentum and speed indicators work on a similar principle; however, they are not the same.
The momentum/volatility indicator measures the strength/weakness of an asset, while the volume indicator tracks the speed at which an asset moves over a period of time.
Thus, the volatility indicator calculates and displays how fast or slow the price is moving in a bullish/bearish direction at a given point in time.
How to Use The Velocity Indicator
TThe image below shows the market price velocity of the EUR/USD currency pair on the H1 timeframe.
The indicator displays market speed using a histogram line located above or below the zero line for bullish and bearish movements. Thus, the height of the line shows how quickly or slowly the price moved in that direction.
Thus, the upper values of the histogram indicate that the price was moving slowly in that direction of the time interval. Conversely, lower values in the histogram indicate that the price was moving faster in that direction. In other words, the longer the histogram bar, the slower the price moved in that direction and vice versa.
Additionally, like the volatility/momentum indicator, the speed indicator does not generate buy or sell signals. The green color of the line indicates a buy signal, and the pink line indicates a sell signal. However, it can be used in conjunction with price action or any other technical analysis tool to make informed trading decisions.
Conclusion
The Velocity Indicator for MT5 displays the bullish or bearish velocity of a financial asset over a specific period of time (e.g. Hi, H4, etc.). Finally, it can be downloaded for fre
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