Volume, momentum, and market strength are key indications that price is about to move in a certain direction. The Volume-solution indicator is one indicator which can help traders objectively classify a momentum type of trade setup as one having volume and strength or not.
What is the Volume-solution Indicator?
The Trading Volume indicator is a custom technical indicator which works somewhat like a market sentiment indicator. It indicates the strength of the bulls and the bears of the market. What is unique about the Volume- solution indicator is that it makes use of trading volume as a basis for measuring the strength of the bulls and the bears.
How the Volume-solution Indicator Works?
As the name suggests, the Volume-solution indicator bases its measure of the strength of bulls and bears on tick volume in relation to price movements. Its measure of volume is also somehow based on the ratio of the body of the candle, whether it has to have moved up or down. This indicator can be set to base its calculation of volume and strength based on Body Ratio, Bid Ratio, and Open Ratio. This can be modified on the “Calculation By” variable under the Inputs tab of the indicator’s settings.