Tick Volume Moving Averages

Separated tick volume moving averages:

This tool makes it is easier to track the volume behind the moves. It will separate tick volume into bullish and bearish volumes with two separate moving averages.

Tracking volume versus price in an easy way is now accessable to any trader. It will put you on track with the market makers and those who move the price. Volume is not the only thing which moves the price but its an important factor behind it. Hence it has a predictive power.

How tick volume works in forex:

Tick volume is rarely used by most of traders, as it is hard to analyze and utilize it. As we know, each volume tick bar measures the number of transactions per candle. The more transactions there are in one candle, the higher the volume and if candle closes lower it means sellers are stronger and price will move lower. This indicator averages those transaction volumes with moving averages, averaging bearish volume vs bullish one.

How to use the indicator:

• Prevalance of bullish volume: price is likely to trend higher. 
• Bullish volume makes higher highs: price price is likely to move higher. 

• Prevalance of bearish volume means price is likely to trend lower.
• Bearish volume makes higher highs: price price is likely to move higher. 

• Watch also crossovers of volume averages, signal which indicates the change of trend in opposite directions
• Bullish / Bearish MA failed to make higher high: signal of trend exhaustion and change of trend.

You can regulate the period and type of tick volume averages (SMA, EMA, SMMA, LWMA).

Examples of trading strategies based on the indicator:

On attached screenshots no. 1 and 2. Bullish and Bearish Volume Tick Volume Averages are set to 12 tick bars (standard setting with simple MA). Period and MA type can be changed.

On attached screenshots no. 3, 4, 5 you can observe also examples on how to use the indicator on offline charts of renko-type: tick (constant volume) charts and point original (point O) charts.