Volume MA Indicator MT5
- Indicators
- Eda Kaya
- Version: 2.1
Volume MA Indicator MetaTrader 5
The Volume MA indicator is a technical analysis tool on the MetaTrader 5 platform that streamlines volume fluctuations by utilizing the moving average of volume over a specified period (e.g., the last 14 or 20 candles).
This oscillator compares the trading volume of each candle with the average volume over the chosen period:
- Volume above average: Indicates increased trading activity
- Volume below average: Suggests a decrease in trading activity
«Indicator Installation & User Guide»
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Volume MA Specifications Table
The table below outlines the general specifications of the Volume MA indicator on the MetaTrader 5 platform:
Feature | Description |
Category | Trading Tool – Oscillator – Volume Trading |
Platform | MetaTrader 5 |
Skill Level | Intermediate |
Indicator Type | Trend-following – Reversal |
Timeframe | Multi timeframe |
Trading Style | Intraday Trading |
Trading Market | All Markets |
Indicator Overview
The Volume MA indicator is a trading tool designed to analyze trade volume, working similarly to a moving average. It displays different colored bars in the histogram to reflect market conditions:
- Green bar: Signals rising prices when the fast volume MA is below the slow volume MA
- Gray bar: Confirms price growth when the short-term volume MA is above the long-term volume MA
- Pink bar: Reflects price declines when the fast volume MA moves below the slow volume MA
- Dark red bar: Indicates sharp price drops with high volume, where the fast volume MA crosses above the slow one
Uptrend Conditions
On the 15-minute chart of the CAD/JPY currency pair, an increase in volume alongside a bullish candle above the volume moving average (MA) indicates a strong uptrend. This often serves as a confirmation signal for a continued upward move.
Downtrend Conditions
The chart below displays the Gold Spot Index (XAU/USD) on a 30-minute timeframe. A bearish candle with above-average volume forming at a resistance level can indicate heightened selling pressure, offering a potential setup for short trades.
Volume MA Indicator Settings
The following outlines the settings panel of the Volume MA indicator in MetaTrader 5:
- Type of volume to be used for calculation: Specifies the volume type applied in calculations
- Number of periods to calculate the moving average: Defines how many candles are included for the volume MA
- Moving average method (EMA, etc.): Sets the method used to calculate the moving average
- Percentage threshold for breakout detection: Indicates the threshold percentage to detect volume breakout from the average
Conclusion
The Volume MA indicator highlights trend strength and weakness by comparing current volume to its moving average. High volume along with a bullish candle signals continuation and potential entry points, while elevated volume with a bearish candle at resistance suggests selling pressure.