About the On Balance Volume Signal Alert Indicator
The On Balance Volume Signal Alert indicator for MetaTrader 4 is a signal-based trading tool built around the classic On Balance Volume concept.
It analyzes volume flow to determine whether buying or selling pressure is dominating the market.
The indicator plots visual bullet signals directly on the price chart.
Blue bullets appear during bullish volume conditions, while red bullets signal bearish volume pressure.
These signals are supported by alert messages that clearly suggest whether to open a buy or sell trade.
In addition to trade signals, the indicator displays useful account and market data on the chart, including leverage, balance, equity, spread, and the current signal bias.
It works across all timeframes, from short-term intraday charts to long-term position trading setups.
Free Download
Download the “OBVMTF.mq4” MT4 indicator
Key Features
- Buy and sell signals based on On Balance Volume.
- Blue bullet signals for buy opportunities.
- Red bullet signals for sell opportunities.
- Works on all MT4 timeframes.
- On-chart signal alerts and trade suggestions.
- Displays account and market information.
- Designed for volume-based confirmation.
Indicator Chart
This chart example shows the On Balance Volume Signal Alert indicator applied to the trading chart.
Blue and red bullet signals appear above price action, highlighting potential buy and sell opportunities driven by volume shifts.
Guide to Trade with the On Balance Volume Signal Alert Indicator
Buy Rules
- Wait for a blue bullet to appear on the chart.
- Confirm that the indicator displays a buy trade suggestion.
- Check that recent price action supports bullish continuation.
- Open a buy trade at the close of the signal candle.
Sell Rules
- Wait for a red bullet to appear on the chart.
- Confirm that the indicator displays a sell trade suggestion.
- Check that recent price action supports bearish continuation.
- Open a sell trade at the close of the signal candle.
Stop Loss
- For buy trades, place the stop loss below the nearest swing low.
- For sell trades, place the stop loss above the nearest swing high.
Take Profit
- Set take profit near the next key resistance for buy trades.
- Set take profit near the next key support for sell trades.
- Lock in partial profits if volume momentum begins to slow.
On Balance Volume Signal Alert + Supertrend NRP Forex Scalping Strategy
This MT4 scalping strategy combines two powerful tools: the On Balance Volume Signal Alert Indicator and the Supertrend NRP Indicator.
The On Balance Volume Signal Alert indicator plots blue and red bullets above the chart.
A blue bullet is a buy signal, and a red bullet is a sell signal. These signals are based on volume shifts, which makes them very useful for short-term scalping.
The Supertrend NRP indicator helps confirm the direction.
When the Supertrend line is green, the market is in a buy trend. When it turns orange, the trend is bearish.
Combining fast OBV signals with a stable trend filter creates a clean and effective scalping method.
This strategy works best on M1, M5 and M15 timeframes for active traders who want quick entries and fast exits.
It is also suitable for volatile pairs like GBPUSD, XAUUSD and NAS100, where volume and trend shifts occur frequently.
Buy Entry Rules
- Wait for a blue bullet to appear from the OBV Signal Alert indicator.
- Confirm that the Supertrend NRP line is green.
- Enter a buy trade once the candle closes with both conditions aligned.
- Place the stop loss below the Supertrend green line or the recent swing low.
- Take profit at 5 to 15 pips, depending on volatility.
- Optionally close early if the Supertrend flips from green to orange.
Sell Entry Rules
- Wait for a red bullet to appear from the OBV Signal Alert indicator.
- Confirm that the Supertrend NRP line is orange.
- Enter a sell trade once the candle closes with both signals in agreement.
- Place the stop loss above the Supertrend orange line or a recent swing high.
- Take profit at 5 to 15 pips, depending on price speed.
- Exit early if Supertrend flips from orange to green.
Advantages
- Fast and simple signals, ideal for scalping.
- Volume-based entries improve timing on small timeframes.
- Supertrend reduces false signals by confirming direction.
- Works well during London and New York sessions.
- Clear stop loss levels based on the Supertrend line.
Drawbacks
- OBV bullets can appear frequently in low-volume conditions.
- Supertrend may lag slightly during rapid reversals.
- Requires discipline to avoid taking signals against the trend.
Case Study 1
On EURUSD M5 during the London open, a blue OBV bullet appeared as volume increased.
The Supertrend line was already green.
After the candle closed, a buy trade was placed with the stop loss under the green Supertrend band.
Price quickly moved upward and produced a clean 8-pip scalp.
Before any reversal, the trader exited as soon as the Supertrend flattened, locking in a quick profit.
Case Study 2
On XAUUSD M1, the market experienced sharp drops during a high-volume session.
A red OBV bullet appeared exactly as the Supertrend NRP flipped to orange.
A sell trade was taken at the candle close. Price dropped strongly, delivering a fast 12-pip move.
The stop was placed above the orange Supertrend line to keep risk tight.
The trade closed at the take-profit level before the Supertrend could shift back.
Strategy Tips
- Only trade when both indicators agree; never take OBV signals against the Supertrend direction.
- Focus on active sessions for stronger volume signals.
- Avoid choppy ranges where OBV bullets appear too frequently.
- Use tighter stops for M1 and slightly wider for M5 and M15.
- Track average pip movements for your pair to know the best take profit range.
- Stop trading during major news spikes as OBV becomes unstable.
Download Now
Download the “OBVMTF.mq4” Metatrader 4 indicator
FAQ
What does the indicator use to generate signals?
Signals are based on changes in On Balance Volume, which measures whether volume is flowing into or out of the market.
Do the signals work on all timeframes?
Yes. The indicator is compatible with all MT4 timeframes, from M1 to Monthly charts.
Is confirmation recommended before entering trades?
Yes. Volume signals are most effective when combined with trend analysis or other technical tools.
Does the indicator provide alerts?
Yes. It displays on-chart alerts that suggest whether to open a buy or sell trade.
Summary
The On Balance Volume Signal Alert MT4 indicator offers traders a volume-driven approach to identifying buy and sell opportunities.
Its bullet-style signals and on-chart suggestions make trade direction easy to interpret.
By combining volume analysis with supportive market data, the indicator helps traders stay informed and focused.
When paired with confirmation tools and proper risk management, it can add valuable insight to a structured trading strategy.
