The Percentage Volume Forex indicator (PVO) for Metatrader 4 can be classified as a great scalping tool for currency traders.
The indicator appears as an oscillator in the bottom chart of the trading platform and works well for identifying short-term trade opportunities.
It’s recommended to deploy the indicator during the London and New York trading sessions.
Buy & Sell Trade Example
- Open a buy trade when the colored histogram crosses the 0.00 bottom-up.
- Open a sell trade when the colored histogram crosses the 0.00 top-down.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Percentage price oscillator.mq4” indicator for MT4
Indicator Chart (EUR/USD H1)
The picture below shows the Percentage Volume Forex mt4 indicator in action on the trading chart.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Percentage Volume Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Scalping
Does the indicator repaint? No.
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.
The Percentage Volume and VAR Moving Average MT4 scalping strategy provides a disciplined approach for fast intraday trades.
By combining volume momentum with trend confirmation, traders can capture high-probability scalp opportunities while effectively managing risk.
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Download the “Percentage price oscillator.mq4” indicator for Metatrader 4
