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Please explain the volume bars in meta trader charts

09:11 2012.11.08

Besides charts (well on top of charts) you can find volume indicator, green and red vertical lines going to the top side.

Can someone explain me in detail way what are they and what they can be used for, can they be a measure signal who is buying and selling?

thanks!!

+ forex member investment Investment Nowhere Total Posts: 47
21:09 2012.11.08

Volume indicator measures the power of supply and demand buying/selling in the market. It shows strength and weakness of any pair at any moment. small/short bars means weak trading volume, long bars means strong trading volume.

Similar to ADX, high volume suggests one of two cases : 1 - Trend is getting stronger, 2 - Possible trend reversal. Volume indicator by itself can't tell you exactly which case is it, so you would need to use other indicators to know that. like, Stochastics, Bollinger Bands and Moving averages.

For example, it can be used with Bollinger Bands to identify breakouts.

+ forex member mikeselim MikeSelim Kazan Total Posts: 185
09:55 2012.11.09

Never used before volume and didnt think it is can be that important, anyway I have to give a try next week as now is friday, weekend coming up :)

I guess volume is the same thing, works with bigger time frames like one hour charts and higher ?

+ forex member elly Elly Helsinki Total Posts: 74
16:00 2012.11.09

Yes Elly that's right, it's the same thing, works best with bigger time frames. happy weekend :)

+ forex member mikeselim MikeSelim Kazan Total Posts: 185
20:14 2012.11.11

hm... it seems all indicators (technical) works on bigger picture, so it is impossible to create / develop analysis technical which would analyse 5 minutes / 1 minute chart :) ?

+ forex member investment Investment Nowhere Total Posts: 47
22:10 2012.11.11

With default settings, yes all indicators would only work with bigger time frames. To be able to use most technical indicators with smaller time frames we should change their settings to be much higher. For example, 100 EMA on 1 minute chart would be like using 20 EMA on 1 hour chart.

+ forex member mikeselim MikeSelim Kazan Total Posts: 185
17:10 2012.11.12

But anyway, according to experience your in forex trading you would recommend to use higher parameters and higher timeframes to get better positions (entry signals) in currencies ?

+ forex member investment Investment Nowhere Total Posts: 47
15:07 2012.11.13

Higher parameters with higher time frames are good to check the long term trend for example, but for entry signals on large time frames, it's better to use small or default settings with most indicators.

+ forex member mikeselim MikeSelim Kazan Total Posts: 185

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