Traders are aware of the fact that it is impossible to know exact volumes of deals on Forex. Of course, brokers are able to track the volumes of the deals passing through them. However, these volumes do not reflect the complete picture. The standard Volume indicator built in the terminal shows only how many times the price changed within a certain period of time.
VolumeM1 works in a different way. Since any price change is a result of a deal between buyers and sellers often expressed in substantial amount of money, these changes should be considered. The indicator takes into account the price variation range on M1 (in other words, volatility of one-minute bars is considered).
The main objective is finding the areas that can be used as approximate support and resistance zones. Such zones are usually quite easy to identify - they are represented by a group of values having histograms exceeding other values.
- Blue histogram indicates that buy trades on that bar exceed sell ones.
- Orange histogram indicates the opposite case.
Histogram color does not always correlate with Open/Close prices ratio. For example, a histogram may be colored orange for a bar with a Close price higher than an Open one.
The indicator now has two types of volume display:
TYPE_FIRST - volumes are calculated by High and Low bar prices.
TYPE_SECOND - volumes are calculated by Close and Open bar prices.