Better Volume Histogram Indicator For Mt4 Review

MetaTrader 4 is a popular trading platform used by traders around the world. One of its default indicators is the volume histogram, which displays the trading volume for a particular period. However, many traders find this indicator to be limited in its functionality and prefer to use alternative indicators that provide more detailed information.

In this article, we will explore one such alternative – the Better Volume Histogram Indicator for MT4. The Better Volume Histogram Indicator is a custom indicator based on market volume data. It was developed by technical analyst Mark Helweg and provides traders with additional insights into price movements beyond what can be gleaned from basic volume information.

Better Volume Histogram Indicator For Mt4

Download Free Better Volume Histogram Indicator For Mt4

The indicator measures buying and selling pressure in real-time, allowing traders to identify trends and momentum shifts before they become apparent through other methods. By using this indicator alongside other technical analysis tools, traders can gain a more comprehensive understanding of market conditions and make more informed trading decisions.

The Limitations of the Default Volume Histogram Indicator on MT4

The default volume histogram indicator on the MT4 platform is limited in its ability to provide comprehensive analysis of market activity due to its simplistic design and lack of customization options. While it does display the relative strength of price movements, it falls short in providing traders with a deeper understanding of market dynamics.

For example, the default indicator only displays volume data for each candlestick individually, without any reference to previous or future bars. This makes it difficult to identify trends in volume over time, which can be a crucial factor when making trading decisions.

To overcome these limitations, traders may turn to alternative volume indicators that offer more advanced features for analyzing market activity. One such indicator is the Better Volume Histogram (BVH), which was developed by Mark Chaikin.

The BVH provides traders with a broader view of the market by displaying cumulative buying and selling pressure over multiple periods. It also includes custom color-coding options that allow traders to highlight significant changes in volume activity quickly.

Trading strategies using volume data can benefit significantly from using an alternative volume indicator like BVH as it provides valuable insights into market sentiment and helps identify potential trade opportunities based on buying or selling pressure at specific price levels.

The Benefits of Using the Better Volume Histogram Indicator

The utilization of a reliable and accurate technical tool can significantly enhance the effectiveness of analyzing market trends and making informed trading decisions. The Better Volume Histogram Indicator is an advanced tool that can provide traders with additional information about market volume, which can lead to improved trading strategies.

This indicator uses colored bars to represent different types of volume, allowing traders to quickly identify trends in buying and selling activity. One significant benefit of using this indicator is its ability to detect changes in trend direction before they become apparent on price charts.

By analyzing the volume data provided by the Better Volume Histogram Indicator, traders can identify when buyers or sellers are beginning to take control of the market. This information can be used to enter trades at more advantageous prices or exit positions before a significant price reversal occurs.

Additionally, this indicator allows traders to determine if there is enough momentum behind a particular trend, enabling them to make more informed decisions about whether or not to follow that trend or wait for a better opportunity.

How to Install and Use the Better Volume Histogram Indicator on MT4

This section outlines the steps to install and utilize a technical analysis tool on the MT4 trading platform, providing traders with an additional source of information to improve their market trend analysis and decision-making.

The Better Volume Histogram Indicator is a popular volume-based tool that displays bars indicating whether the market is bullish or bearish. To install this indicator, traders can go to the ‘Insert’ tab on the MT4 platform and select ‘Indicators’ from the dropdown menu.

Next, they should choose ‘Custom’ and locate the file containing the Better Volume Histogram Indicator. Once installed, traders can customize its appearance by changing its colors or display preferences.

After installing the Better Volume Histogram Indicator, traders can interpret volume trends to identify potential trade opportunities in real-time. When analyzing volume trends, bull bar signals indicate buying pressure while bear bar signals suggest selling pressure.

Traders can also look for divergences between price action and volume indicators as they may signal a possible reversal in market direction. Additionally, comparing current volume levels with historical averages can provide insight into market sentiment and help traders make informed decisions about entering or exiting trades.

With these customization options and interpreting strategies at hand, traders can use this indicator to enhance their technical analysis arsenal on MT4 and potentially increase their profits in the markets.

Conclusion

The Better Volume Histogram Indicator for MT4 is a tool that can help traders better understand market volume and make more informed trading decisions. The default volume histogram indicator on MT4 has limitations, such as only showing tick volume and not taking into account the actual size of trades.

By using the Better Volume Histogram Indicator, traders can gain access to more comprehensive data on market volume, including buying and selling activity and strength. This allows them to identify trends and potential price movements with greater accuracy, ultimately leading to more profitable trades.

Overall, the Better Volume Histogram Indicator is a valuable addition to any trader’s toolkit on MT4. With its ability to provide deeper insights into market volume and activity, it can help traders make more informed decisions and achieve greater success in their trading endeavors.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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