The Volume Candlesticks indicator for Metatrader 5 displays both high and low volume candles on the price chart, offering valuable insights for traders to identify optimal entry points into the market.
Interpreting the volume candles correctly is essential:
- A red-colored high-volume candle may signal a robust continuation or reversal in the prevailing trend.
- A blue-colored low-volume candle typically indicates price movements within a range-bound market.
Traders have the flexibility to customize the following indicators’ inputs and parameters: the number of bars, colors for high volume candles, low volume candles, and shadow candles.
This indicator is versatile and effective across all trading instruments supported by the MetaTrader 5 charting platform.
For optimal results, it is advisable to gain familiarity with this technical indicator and extensively test it on a demo account.
To maximize profit potential, scalpers and day traders can capitalize on the Volume Candlesticks indicator during periods of high market volatility.
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VolumeCandlesticks.mq5 Indicator (MT5)
Chart Example GBPUSD H1
The picture below illustrates what the Volume Candlesticks indicator looks like when applied to the MT5 chart.
How To Buy And Sell With The Volume Candlesticks Indicator?
Find a simple trading strategy below:
Buy Signal
- Buy market condition: The overall trend must be positive.
- To enter a buy order, look for a red high-volume bullish candle on the chart.
- Exit the buy trade for a risk/reward ratio of at least 1.5.
- Optionally: await a valid sell signal to close the buy position.
Sell Signal
- Sell market condition: The overall trend must be negative.
- To enter a sell order, look for a red high-volume bearish candle on the chart.
- Exit the sell trade for a risk/reward ratio of at least 1.5.
- Optionally: await a valid buy signal to close the sell position.
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VolumeCandlesticks.mq5 Indicator (MT5)
Volume-Backed Breakout MT5 Strategy Using Turtle MTF + Volume Candlesticks
This strategy combines multi-timeframe trend detection from the Turtle MTF Forex Indicator with real-time volume strength from the Volume Candlesticks Forex Indicator.
It’s designed to catch breakout moves that are supported by institutional-level volume activity.
Strategy Concept
The Turtle MTF Indicator shows breakout levels and trends from higher timeframes, helping you align with market momentum.
The Volume Candlesticks Indicator reveals whether price candles are forming with strong or weak volume, an essential clue for validating breakout strength and avoiding fakeouts.
Buy Trade Setup
- Look for a bullish breakout above the Turtle MTF high breakout level.
- Confirm that the breakout candle is marked with a high volume color by the Volume Candlesticks Indicator.
- Enter a buy trade at the candle close if both conditions are met.
- Set stop-loss just below the breakout level or the most recent swing low.
- Take profit at the next resistance or use a trailing stop as long as volume stays strong.
Sell Trade Setup
- Wait for a bearish breakout below the Turtle MTF low breakout line.
- Check that the breakout candle shows a strong sell volume confirmation from the Volume Candlesticks.
- Place a sell order after the breakout candle closes.
- Stop-loss should go above the breakout zone or recent high.
- Exit the trade near support or based on weakening volume signals.
Additional Tips
- Use M15 or H1 timeframe for best results, with higher timeframe confirmation on H4 or D1.
- Strongest signals occur during London and New York sessions when volume is high.
- If a breakout occurs on low volume, avoid taking the trade and wait for stronger confirmation.
By combining volume strength with breakout structure across multiple timeframes, this strategy increases your edge in catching explosive moves while filtering out false breakouts.
Both the Volume Candlesticks Indicator and Turtle MTF Indicator work together to confirm precise entries.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the VolumeCandlesticks.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
