VSI Indicator

VSI Indicator

The VSI indicator for MT5 detects bullish/bearish volume spikes. Free download! Do not repaint!

The VSI Indicator for MetaTrader 5 is a forex indicator that detects bullish and bearish surges caused by a sudden increase in the trading volume of an asset. It is simply a volume indicator that detects bursts of volatility in the market.

The indicator is an incredible forex trading tool for capturing big moves caused by market makers. This is because jumps in the volume of financial instruments often suggest that the market is likely to continue moving in that direction for a while.

Also, in some cases, sudden spikes in an asset’s volume can lead to minor pullbacks, thus creating trading opportunities for scalpers to catch small moves. Thus, the VSI indicator for MT5 will be a very handy tool for both scalpers and day/intraday traders to take advantage of market volume spikes.

How to Trade with the VSI Indicator for MT5
The image below shows the action of the VSI indicator on the EURUSD pair. The indicator uses a purple line to show a sharp increase in price volatility.

Thus, a bullish/bearish spike in volatility is displayed when the purple line makes a straight up move and then pulls back with a sharp downward edge. Also, bullish bursts represent a spike in volatility on bullish candles, while bearish bursts occur on bearish candles.

Therefore, you can look for an opportunity to buy or sell an asset as soon as the indicator shows a surge in volatility. For example, the image above shows that the indicator has detected a bearish volume surge while a bearish candlestick pattern is signaling a sell entry.

Conclusion
The VSI indicator for MT5 is a volatility detector that displays a sudden increase in the volatility of instruments in the forex industry.