About the Percentage Volume Forex Indicator
The Percentage Volume Forex Indicator for Metatrader 4, also known as PVO, is a short-term trading tool designed to measure changes in market activity.
It focuses on volume behavior and displays this information as an oscillator in a separate MT4 chart window.
This helps traders spot moments when participation increases and price is more likely to move.
The indicator is especially effective during high-liquidity sessions such as London and New York.
During these periods, volume changes tend to be more meaningful, making signals more actionable for scalping and fast intraday trades.
The histogram fluctuates around the 0.00 level, showing whether volume pressure is increasing or fading.
PVO is lightweight and responsive, making it suitable for traders who rely on speed and quick decision-making.
Free Download
Download the “Percentage price oscillator.mq4” indicator for MT4
Key Features
- Measures percentage-based volume momentum.
- Displays a colored histogram in a separate MT4 window.
- Uses the 0.00 level as a key trigger zone.
- Optimized for scalping and intraday trading.
- Runs efficiently without slowing the platform.
Indicator Chart
The Percentage Volume Forex indicator chart appears in the lower section of MT4 as a histogram oscillator.
The bars expand and contract based on changes in volume momentum.
Crosses above or below the 0.00 line highlight shifts in market participation.
These moments often coincide with short bursts of directional price movement.
Guide to Trade with Percentage Volume Forex Indicator
Buy Rules
- Wait for the colored histogram to cross above the 0.00 level.
- Ensure price action supports upward movement.
- Enter a buy trade at the close of the signal candle.
Sell Rules
- Wait for the colored histogram to cross below the 0.00 level.
- Confirm increased selling activity.
- Check that price is not consolidating tightly.
- Enter a sell trade at the close of the signal candle.
Stop Loss
- For buy trades, place a stop loss below a short-term intraday support zone.
- For sell trades, place a stop loss above a nearby intraday resistance level.
- Use smaller stops during high-volume sessions to control risk.
Take Profit
- Target quick intraday moves rather than extended runs.
- Use recent price highs or lows as profit objectives.
- Use a fixed pip profit target.
- Lock profits early if volume drops suddenly.
Percentage Volume & VAR Moving Average Forex Scalping Strategy
This scalping strategy combines the Percentage Volume Forex Indicator for MT4 with the VAR Moving Average Indicator for MT4.
The Percentage Volume indicator uses a colored histogram to signal shifts in buying and selling pressure when it crosses the 0.00 level.
The VAR Moving Average confirms the overall trend using a green dotted line for bullish trends and a red dotted line for bearish trends.
Together, they provide precise scalp entries with trend confirmation for fast intraday trading.
This strategy works best on M1 to M15 charts and is suitable for liquid currency pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD.
It is ideal for traders looking to capture small pip movements during active trading sessions.
Buy Entry Rules
- Confirm that the VAR Moving Average shows a green dotted line, indicating a bullish trend.
- Wait for the Percentage Volume histogram to cross the 0.00 level from below.
- Enter a buy trade at the close of the confirming candle.
- Set a stop loss below the recent swing low or 10–15 pips.
- Take profit after 15–25 pips or when the VAR line turns red or the histogram reverses below 0.00.
Sell Entry Rules
- Confirm that the VAR Moving Average shows a red dotted line, indicating a bearish trend.
- Wait for the Percentage Volume histogram to cross 0.00 from above.
- Enter a sell trade at the close of the confirming candle.
- Place a stop loss above the recent swing high or 10–15 pips.
- Take profit after 15–25 pips or when the VAR line turns green or the histogram crosses back above 0.00.
Advantages
- Clear visual signals for fast scalping decisions.
- Combines volume momentum with trend confirmation for higher accuracy.
- Can be applied to multiple currency pairs and short timeframes.
- Helps reduce false entries by aligning the histogram and trend direction.
Drawbacks
- Requires quick execution due to the short-term nature of signals.
- Overtrading risk if the histogram crosses frequently during sideways markets.
- Not ideal for long-term or swing trades due to small pip targets.
Case Study 1 – EUR/JPY, M5 Chart
During the London session, the VAR Moving Average showed a green dotted line, confirming bullish conditions.
The Percentage Volume histogram crossed 0.00 from below at 150.25.
A buy trade was executed at 150.28 with a stop loss at 150.15 and a take profit target of 150.50.
Price moved steadily, reaching the target within 35 minutes for a +22 pip gain.
Case Study 2 – USD/CHF, M1 Chart
During the New York session, the VAR Moving Average displayed a red dotted line, signaling bearish momentum.
The Percentage Volume histogram crossed 0.00 from above at 0.9150.
A short trade was taken at 0.9148 with a stop loss at 0.9160 and a target at 0.9125.
Price fell quickly, reaching the take profit in 20 minutes for a +23 pip scalp.
Strategy Tips
- Focus on high-liquidity pairs for tighter spreads and faster execution.
- Trade during active sessions to capture strong volume-based moves.
- Only enter trades when both the histogram and VAR trend align to reduce false signals.
- Use tight stop losses to protect capital from sudden reversals.
- Consider using a small trailing stop once the price moves 50% toward the target to maximize profits.
Download Now
Download the “Percentage price oscillator.mq4” indicator for Metatrader 4
FAQ
Why is this indicator recommended for London and New York sessions?
These sessions provide the highest market participation.
Volume signals generated during these hours tend to be more reliable and actionable.
Does the PVO indicator repaint?
The histogram values are calculated using completed data.
Once a bar is closed, its position relative to the zero line remains fixed.
Is this indicator suitable for swing trading?
It is primarily designed for scalping and short-term trades.
Longer-term traders may find signals less relevant outside active sessions.
Can this indicator be used as a confirmation tool?
Yes, it works well alongside price action or trend filters.
It helps confirm whether enough participation exists to support a trade idea.
Summary
The Percentage Volume Forex Indicator for MT4 is designed to highlight changes in market participation during active trading periods.
By focusing on volume behavior rather than price alone, it provides an additional layer of insight into short-term market dynamics.
The oscillator format makes it easy to spot moments when activity expands or contracts, which often precedes quick price movements.
This is especially useful for traders who operate during the London and New York sessions and require fast confirmation.
The indicator is lightweight, responsive, and easy to integrate into an existing scalping workflow.
With proper session timing and disciplined trade management, it can help traders improve timing and confidence in short-term decision-making.
