The Price Volume Trend MTF MetaTrader indicator combines the price and volume to identify the trend. It creates a simple oscillator indicator that reflects the bullish and bearish forex price trend. Though the underlying calculations are similar, there are few differences from the classic volume price trend indicator and the MTF version.
In terms of technical analysis, this indicator provides capability to analyze different time frames on the current price chart. Additionally, the indicator applies sensitivity filters to help traders adjust the indicator responsiveness.
Features of Price Volume Trend MTF MT4 Indicator
This indicator is basically different from other price and volume related MetaTrader indicators. It considers the percentage increase or decrease in price from the previous period price. However, other indicators just add or subtract the volume depending on the current and previous period’s price.
In fact, if the price of the currency pair moves higher the indicator multiplies the volume and percentage increase of current close and previous close. The result is added to previous period’s indicator value. In a similar fashion, during a down trend the indicator uses the percentage of price decrease in the formula.
As a result, the indicator is able to identify and reflect price trends by combining volume and price. In fact, the indicator is more effective than other similar MetaTrader indicators like the OBV-On balance Volume to identify trend using volume.
The indicator plots two lines on a separate indicator window. Indicator line is in lime, while the moving average is in red. The buy and sell trading signals are based on the crossover of these lines.
If the indicator line moves above the red moving average it indicates a bullish price trend. Traders should enter a buy position with a stop loss below the previous swing low. It is prudent to wait for the trend to end and book profits at an opposite trading signal.
Traders can follow a similar trading strategy in a bearish market condition if the indicator line moves below the red line.
Benefits of Price Volume Trend MTF MT4 Indicator
Volume plays an important role in trend trading; it helps traders to identify the trend strength. Hence, this indicator is beneficial for forex trend traders focusing on volume.
The indicator works well in all chart time frames and is suitable for scalpers, short and long-term forex traders. Moreover, it is versatile and provides multiple options in the input settings for traders to adapt to different trading situations. So, this indicator is suitable for new and advanced forex traders.
Indicator Settings Description
History: Number of history bars for indicator calculation.
TimeFrame: Traders can choose current chart time frame of choose from 1 min to 1 month from the list.
Calculation: Choose frome MQL_Original, MQL_TimeFrame, TSLAB_RU, Trading View and Japan_OCLH options.
PRPeriod: Price period.
VLPeriod: Volume period.
Method: Traders can choose from 4 different moving averages.
Price: Provides seven different price choices.
SQPeriod :, SQMethod:, SQPrice: Input for average calculation.
SigMA :, SGMethod: Improves sensitivity and acts as a filter.
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