Positive Volume Index Indicator For MT4



Table Of Contents:

  1. Positive Volume Index Indicator For MT4
  2. Some Advantages and Disadvantages of using the Positive Volume Index Indicator For MT4
  3. Some Trade Ideas

The Positive Volume Index Indicator For MT4 is a meta trader 4 based indicator that works by analyzing price action and working out when the present volume is increasing based on the analysis, then alerting the trader using the indicator to such changes. This helps the trader to be aware of developing trends and retracements in the currency pair or trading asset the trader is working on. 

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Some Advantages and Disadvantages of using the Positive Volume Index Indicator For MT4

Using the Positive Volume Index Indicator For MT4 makes traders very aware of developing trends in a market, whether it is a reversal or a more temporary retracement in price action. This can help the trader to catch a lot of profitable trades simply by using the indicator.

It is an aggressive tool since it tries to get the trader into newly developing trends as soon as the trend starts. That way the trader can participate in catching new trends or retracements in price which actually leads to profits quicker than following the trend since the markets react very quickly to get inexperienced trader afraid so they can quickly puke their positions for the more advanced trader to pick them up.

Also, because the Positive Volume Index Indicator For MT4 reacts very quickly to changes in trend, it can try to get a trader into a trend that has not yet developed too early but this does not happen very frequently.

During periods of inactivity in the markets, the professionals are usually very busy accumulating positions before they move the price. They do this very carefully so that the retail trader doesn't identify what they are doing and not join in on the move. During this period, the Positive Volume Index Indicator For MT4 prints a very flat tight signal with both of its signal lines.

This brief flattening of both of the Positive Volume Index Indicator For MT4's signal lines can be a cue to the trader to be prepared for when price breaks out of the tight range as this might be professionals trying to move price to another area and the trader who identified this move can then benefit from it either by buying or selling the breakout from that price range with the guidance of the Positive Volume Index Indicator For MT4.

Signals produced by the Positive Volume Index Indicator For MT4 are usually stable and can be traded as a standalone system so long as the trader allows each session to close before he or she takes the trade. That way, the signals are already present after the candle of that timeframe has closed and will not repaint to give the trader another move on the next bar.

The structure of the Positive Volume Index Indicator For MT4 means that a trader's chart stays neat and tidy since the indicator stays in its own separate window. This also means that there is enough room for the trader to do his or her own analysis on price action since the indicator does not block or obstruct price action.

Analysis done with the Positive Volume Index Indicator For MT4 in a multi-timeframe environment is usually far superior to just analysis on one chart as it can drastically increase the accuracy level of the analysis by aligning lower timeframe trades in the direction of the higher timeframe. This can then assist the trader in staying away from trades that are against the general direction of the trend.

The Positive Volume Index Indicator For MT4 also offers the trader excellent entry into trends when the trader uses the crossing of its two signal lines in the direction of the trend as entry signals. It allows the traders to then add to positions if they are already in a trade on that particular currency pair or trading asset or just take on new positions.

Spotting divergences in price is very easy when using the Positive Volume Index Indicator For MT4 as it naturally starts to change its direction once the strength of a trend starts to change, which is also one of the major reasons it helps traders catch new trends very easily. Hence, in an uptrend, for instance, traders can watch out for when the Positive Volume Index Indicator For MT4's signal tines start to fall away despite rising prices or price making higher highs.

This should immediately catch the trader's attention so that once a new trend starts developing, the trader can join the trend simply by taking one of the crosses of the Positive Volume Index Indicator For MT4's signal lines in the direction of the new emerging trend.

More generally, the signal lines can be used to alert the trader of new trade opportunities. For instance, in an uptrend, the trader can take crosses of the two signal lines upwards as buy signals and in a downtrend, traders can also take crosses of the two signal lines downwards as sell signals.

Another upside to using the Positive Volume Index Indicator For MT4 is that when it takes a trader into a trade successfully, it can help the trader to hold the trade for as long as the trend is in place. That way the trader doesn't have to be worried about leaving the trend too early since when the signal lines indicate that the trade is over, it is very likely that the trend strength has become exhausted. This can be very beneficial to trades who are often very afraid and therefore close out their trades too early because they are afraid of price reversing and them now losing the little profits that they have made.
Retracement traders and traders who like to fade active trends can use this indicator to allow them to get into those trends very easily. This, however, requires a certain level of expertise and skill in the markets as beginners are very likely to get into big loses.

Some Trade Ideas

Traders who wish to use the Positive Volume Index Indicator For MT4 can first spot a new entry into a higher timeframe trend, then go down to lower timeframes and take only signal line crosses in the direction of the higher timeframe cross.

Another trade idea who be to watch out for flat periods in the Positive Volume Index Indicator For MT4 and wait for price action to break out of these periods and join the trade in whichever direction the breakout occurs, using the top or bottom of the range as the stop loss.  

 

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