Normalized Volume Indicator MT5
- Indicators
- Eda Kaya
- Version: 2.1
Normalized Volume Indicator MetaTrader 5
The Normalized Volume Indicator is a volume-based oscillator on the MetaTrader 5 platform that compares current trading volume to its historical average. By displaying volume deviations through a histogram, this tool helps traders evaluate the relative strength of price movements.
A dashed signal line is also included in the oscillator to mark significant volume thresholds.
«Indicator Installation & User Guide»
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Specifications Table of the Normalized Volume Indicator
Category | Oscillator – Currency Strength – Trading Tool |
Platform | MetaTrader 5 |
Skill Level | Beginner |
Indicator Type | Reversal – Continuation |
Timeframe | Daily |
Trading Style | Day Trading |
Trading Market | All Markets |
Indicator Overview
The indicator calculates average volume over a defined period and compares real-time volume to this average:
· Blue bars indicate volume higher than the normalized average.
· Orange bars signify volume lower than the average.
· A dashed signal line marks the 100-level threshold to help traders quickly identify significant volume surges or drops.
This visual representation provides a clear understanding of whether market activity supports current price movements.
Uptrend Conditions
In the 1-hour price chart of Chainlink (LINK), the histogram displays consistent blue bars during an upward price movement. This alignment of increasing volume and rising price action suggests bullish confirmation and supports the continuation of the uptrend.
Downtrend Conditions
In the 30-minute EUR/USD chart, the price is in a clear downtrend while the histogram continues to form blue bars, indicating elevated volume. This scenario confirms bearish momentum and highlights strong participation from sellers during the trend.
Indicator Settings
Setting | Description |
Calculation Period | Number of candles used to calculate the normal volume (default: 14) |
Signal Threshold | Value for identifying significant volume activity (default: 100.0) |
Theme Setting | Appearance customization for the indicator |
Conclusion
The Normalized Volume Indicator for MetaTrader 5 provides traders with a straightforward way to assess whether price movements are backed by strong or weak market activity.
Through the use of color-coded histogram bars and a volume threshold line, the indicator helps identify potential trend changes, breakout strength, or weakening momentum. This tool is particularly effective in dynamic market environments where volume plays a key role in confirming price direction.