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Using volume bars on the chart, the swing index forex indicator is a volume-based mt4 forex indicator that is used to confirm trend reversals.
The size of a volume bar represents the rate of price changes over a given period of time.
Due to the fact that this volume is tick-based, it differs from the original volume used in forex trading. It displays the volume as bars and measures the tick speed in discrete intervals.
How does the forex swing index MT4 indicator function?
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This indicator foretells market trend reversals. The activity of trading in each candlestick is represented by the volume bar of the indicator. For instance, a large volume bar predicts the formation of a large candlestick, whereas a tiny volume bar predicts the formation of a small candlestick.
The chart’s bullish and bearish candlesticks are shown, respectively, by green and red color bars. Red denotes a bearish trend, and green denotes a bullish trend.
When a large volume bar ends in a little candlestick, the trend has reversed. The huge volume bar should cause a large candlestick to emerge on the chart, but occasionally this doesn’t happen and the trend reverses.
Trading Signals
The volume is the only factor on which the MT4 swing index indication is based. You ought to use this indicator to educate yourself on volume spread analysis so that you can trade.
signal to buy
When a green climax develops in the indicator’s window, a bullish reversal occurs. As a result, the price trend shifts from bearish to positive.
Sell signal
When a red volume climax emerges in the swing index indicator, a bearish reversal occurs and the trend shifts from bullish to bearish.
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Conclusion
Learn about the development of volume bars in forex before trading with the MetaTrader 4 swing volume index indicator. After understanding VSA, you’ll be able to use this indicator to trade successfully.
To improve this indicator’s winning percentage, include additional price pattern convergences.
Before using this indicator to trade on a live account, be sure to backtest it.
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