Horizontal Volumes Indicator - using a histogram, displays the volume of transactions at a certain price without reference to time. At the same time, the histogram appears directly in the terminal window, and each column of the volume is easily correlated with the quote value of the currency pair. The indicator practically does not require changing the settings, and if desired, any trader can figure them out.
The volume of transactions is of great importance in exchange trading, usually an increase in the number of concluded contracts confirms the trend, and their reduction indicates an imminent reversal. When trading on Forex, this indicator is also widely used, although the sources for obtaining data are rather doubtful, there are many supporters who confirm the effectiveness of using volumes as a signal for opening deals. That is, thanks to him, we can conclude how the market reacted to one or another quotation, and how the volume changed in accordance with the price level.
Strategy for using the volume indicator.
A feature of this tool is that it focuses not on time, but on a price indicator, that is, it shows which price is most attractive to buyers and sellers. How the market reacts to changes in the size of operations. The easiest way to use the indicator is to open a transaction in the direction of the existing trend when the histogram expands. that is, this fact confirms the current trend. The best result is obtained by combining the volume indicator with fundamental news, it can act as a news filter, that is, show how the market reacts to one or another news. Also, when working, it is advisable to use other technical analysis tools that analyze the current trend in the market.