Better Volume 1.5 Indicator MT4

The Better Volume 1.5 Indicator analyzes the activity of forex market participants and displays it as a colored histogram. Since the actual volume of open lots is difficult to calculate in Forex due to its decentralized nature, the indicator uses tick volumes to represent trading activity. Tick volume measures the number of price changes over a defined time interval, providing traders with a practical view of market participation.

This indicator helps traders understand market motives and develop strategies based on volume patterns. It differentiates trading activity accurately, providing insights into both low and high market interest.

Features of Better Volume 1.5 Indicator

Compared to the standard MT4 Volumes indicator, the Better Volume 1.5 Indicator offers advanced functionality:

Color-Coded Volume Categories

Blue: Standard volume of transactions.

Yellow: Low trading volume; indicates market uncertainty.

Green: Increased interest, usually due to major participant repositioning.

Red: Boost in buying activity; potential trade entry signal.

White: Increase in selling activity; potential trade entry signal.

Moving Average Filter

The indicator plots a moving average over the volume histogram. Crosses of the moving average with volume columns can serve as additional trading signals.

Information vs. Trading Volumes

The Better Volume 1.5 separates volumes into information volumes (market interest signals) and trading volumes (potential entry points), making it easier to interpret market behavior.

Buy and Sell Strategies with Better Volume 1.5

The Better Volume 1.5 Indicator is most effective when combined with market trends and overall forex sentiment:

Buy Signals

Look for red volumes indicating increased buying activity.

Confirm the entry with an upward trend or break above a trend line.

Place Stop Loss below the previous swing low or trend line for protection.

Sell Signals

Look for white volumes indicating increased selling activity.

Confirm the entry with a downward trend or break below a trend line.

Place Stop Loss above the previous swing high.

Tips for Trading

Avoid trading during yellow or green volumes without trend confirmation, as these indicate low certainty or repositioning by major participants.

Use trendlines and moving averages to confirm volume-based signals.

Settings of Better Volume 1.5

The indicator is highly customizable:

Adjust volume categories for better visual clarity.

Customize the moving average period to align with your trading strategy.

Choose appropriate timeframes for intraday or swing trading.

While the histogram has multiple colors, its design is intentional to provide traders with accurate information about both market and trading volumes.

Conclusion

The Better Volume 1.5 Indicator for MT4 is a powerful tool for forex traders seeking to analyze trading volumes and market sentiment. By differentiating between high, low, and trading volumes, the indicator offers actionable insights for profitable trades. Whether you are a beginner or an experienced trader, combining Better Volume 1.5 with trend analysis and Price Action increases the reliability of your trading decisions.

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