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
Hi, do you have same indicator for MT4?
Does anyone know How
can I use this indicator for an EA ?
I like the look of this indicator but cant seem to make it work in an EA?
Does anyone know what the colours represent?
Kindly share please.