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To say that the Forex market is massive would be the understatement of the year. If the Daily Forex stats are anything to go by, the daily forex market went from $1.2 trillion to $6.6 trillion between 2001 and 2019. Currently, the global Forex market’s worth stands at a whopping $2.4 quadrillion. On average, more than 6.6 trillion US dollars are traded on the global Forex market every single day.
With these big numbers, it is hard to imagine that Forex trading only began in 1973. Back then, the major players in the market included large institutions with huge financial backing such as banks and governments. Well, that has since changed. The average Joe can dip his toe in the Forex market now and make life-changing investments. In this guide, we explore the idea of utilizing the Better Volume Indicator during Forex trading.
What Is Better Volume Indicator And Why Is It Beneficial?
Before making a trade, it is natural to pay more attention to the price. However, volume is a super important parameter that goes hand in hand with price if you want absolute success during trading. See, a volume indicator gives you invaluable information during Forex trading. By looking at volume, you can tell whether the trade has many participants or not. Larger volumes translate to more interest and therefore more participants. When you have this information, you will understand the timings and position yourself to trade defensively. You will better know the right time to buy and sell to make optimal profit.
The Better Volume Indicator shows you the values of both price and volume. It uses color to show these values. Blue means the signals are absent; yellow indicates low volume; red for large candle and spread; green means the trend is completed; white indicates that things are going on a downward trend; and purple (an uncommon signal) shows row candles of a huge volume. By studying the charts, you will tell the average trade size, high-low bar range, and translated volume both at both ask and bid.
How to Use It
To use this indicator, you need to install it on your device. Simply copy the extensions of the file to the file specific to indicators. Then drag the installed indicator to the location of the price chart that corresponds to the currency in question.
Look at the color of all the signals and the candles to determine each bar. This indicator utilizes data for the last 20 candles. Check the volume bars to know when to make a trade.While the volume indicator alone will increase your trading knowledge, good Mt4 Forex broker with fast execution will give you a better judgment of the market. Combine both and boost your chances of success with making trades.
The Better Volume Indicator is a powerful tool for forex traders. It gives you priceless volume indicators that go a long way in helping you know when to make a move and when to sit back and watch. In the Forex world where losing money is a huge reality, you need all you can to stay afloat and actually make good money.
Bio:
Bill Adams has been into currency trading for over 6 years. After taking a short course about Forex and Cryptocurrencies, he decided to put his knowledge to good use as a writer and analyst for Tenkofx. Tenkofx was founded in 2012 and has been highly valued by professional traders over these years.
