Velocity V2 Indicator

Velocity V2 Indicator

The Velocity V2 indicator for MT4 is a technical indicator that measures the speed at which a financial asset has moved within a time frame.

The Velocity V2 indicator is a MetaTrader 4 (MT4) indicator that shows the average speed at which the price of a financial trading instrument increases/decreases within a timeframe. It is worth mentioning that the momentum and velocity indicators work in a similar pattern; however, they are not the same.

The momentum/volatility indicator measures the strength/weakness of an asset, while the volume indicator monitors the speed that which an asset has moved within a time frame.

Therefore, the Volatility indicator calculates and displays how fast or slow the price moves in a bullish/bearish direction at a given time.

How to Use The Velocity V2 Indicator

The above image shows the market velocity of the price for the EUR/USD currency pair in the H4 time frame.

The indicator displays the market velocity with histogram bars plotted above or below a zero line for bullish and bearish moves. Thus, the length of the histogram bars tells how fast or slow it took the price to move in that direction.

Therefore, a long histogram bar indicates that the price moved slowly in that direction of the time frame. Conversely, a short histogram bar indicates that the price moved faster in that direction. In other words, the longer the histogram bar, the slower it took the price to move in that direction and vice-versa.

Furthermore, like the volatility/momentum indicator, the velocity indicator doesn’t generate buying or selling signals. However, it can be used along with price action or any other technical analysis tool to make informed trading decisions.

Conclusion
The Velocity V2 indicator for MT4 displays the bullish or bearish speed a financial asset has moved within a time frame (e.g., Hi, H4, etc.). Finally, it is free to download.