Indicators: Volume Average

[Automated-Trading]

Volume Average:

Long known volume analysis method.

In capital markets, volume, or trading volume, is the amount (total number) of a security (or a given set of securities, or an entire market) that was traded during a given period of time. In the context of a single stock trading on a stock exchange, the volume is commonly reported as the number of shares that changed hands during a given day. The transactions are measured on stocks, bonds, options contracts, futures contracts and commodities. The average volume of a security over a longer period of time is the total amount traded in that period, divided by the length of the period. Therefore, the unit of measurement for average volume is shares per unit of time, typically per trading day.

Trading volume is usually higher when the price of a security is changing. News about a company's financial status, products, or plans, whether positive or negative, will usually result in a temporary increase in the trade volume of its stock. Shifts in trade volume can make observed price movements more significant. Higher volume for a stock is an indicator of higher liquidity in the market. For institutional investors who wish to sell a large number of shares of a certain stock, lower liquidity will force them to sell the stock slowly over a longer period of time, to avoid losses due to slippage.

With MetaTrader 5 now you can chose if the volume used is going to be tick volumes or real volumes. Percentage breakouts compared to average volume are marked with different colors.

Author: Mladen Rakic

[santograal]

Congratulations on the indicator! The big balcony of this gauge is the coloring. Put her in the candles that will be wonderful. Can you do it?

[hmiddane]

Hi, do you have same indicator for MT4?

Thanks

[Mohammad Majidi]

HI

Does anyone know How can I use this indicator  for an EA ?

thanks 

[KRiordan]

Hi All,

I like the look of this indicator but cant seem to make it work in an EA?

[Cazz223]

Hello

Does anyone know what the colours represent?

Kindly share please.

Thank you

[Ricardo Krohn de Jesus]

They represent how far the volume is from average... It considers 'breakout percentage' parameter.

Cazz223:

Hello

Does anyone know what the colours represent?

Kindly share please.

Thank you

[ricar]

Great Mladen!

I have a doubt about it. I reaaly want the quantity of securities traded. It seems to me that real volume of Mt5 is a product of quantity x price. I have tried to divide real volume by a median price, but the number seems to be wrong. So, is there a way that I can get the quantity negotiated in a bar?

thank you

Ricar

[ricar]

ricar:

Great Mladen!

I have a doubt about it. I reaaly want the quantity of securities traded. It seems to me that real volume of Mt5 is a product of quantity x price. I have tried to divide real volume by a median price, but the number seems to be wrong. So, is there a way that I can get the quantity negotiated in a bar?

thank you

Ricar

I have noticed you highlighted the text, but it still seems to me that it is true only in forex, as shares are equal to money there. In stock markets it is different, isn´t it?

[Stabewan]

MLaden, you're just awesome!

Thank you very much for putting this Indicator together and for sharing with the community.

You're a rock star! Keep up such great work!

[bagchasercinno]

Great indicator. Just that i don't know what the colours represent. I'm assuming green indicates a high volume of orders, but what about oranage and red?