The Hawkeye Volume indicator was developed for Metatrader 4 and displays colored volume bars that might give you an idea about current and past market volatility.
Key Takeaways:
- Green colored bars are bullish.
- Red colored bars are bearish.
- Large bars indicate increased market volatility.
The indicator works for any currency pair and time frame.
Free Download
Download the “hawkeye-volume-indicator.mq4” indicator for MT4
Indicator Chart (EUR/USD M15)
The example chart below displays the Hawkeye Volume mt4 indicator in action on the trading chart.
Trading Signals (example):
Utilize your own favorite trade entry, stop loss and take profit method to trade with the Hawkeye Volume indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Volume
Repaint? No.
Scalping Strategy: Hawkeye Volume + Precision Trend Histogram (MT4)
This scalping strategy combines the Hawkeye Volume Forex Indicator and the Precision Trend Buy Sell Histogram to identify rapid, high-probability trades.
The Hawkeye Volume indicator uses colored volume bars to indicate market strength, while the Precision Trend Histogram provides trend direction and strength.
This strategy is ideal for 1-minute to 5-minute charts, suitable for traders who prefer quick, intraday trades.
Buy Entry Rules
- Wait for a green volume bar from the Hawkeye Volume indicator, indicating buying pressure.
- Ensure the Precision Trend Histogram is green, confirming a bullish trend.
- Enter a buy trade at the close of the candle that confirms both conditions.
- Set the stop loss just below the most recent swing low or a significant support level.
- Set the take profit at a 1:1.5 reward-to-risk ratio, or exit when the Precision Trend Histogram turns red.
Sell Entry Rules
- Wait for a red volume bar from the Hawkeye Volume indicator, indicating selling pressure.
- Ensure the Precision Trend Histogram is red, confirming a bearish trend.
- Enter a sell trade at the close of the candle that confirms both conditions.
- Set the stop loss just above the most recent swing high or a significant resistance level.
- Set the take profit at a 1:1.5 reward-to-risk ratio, or exit when the Precision Trend Histogram turns green.
Advantages
- Combines volume analysis with trend confirmation for accurate entries.
- Suitable for quick, intraday trades on short timeframes.
- Clear entry and exit signals reduce decision-making time.
- Adaptable to various currency pairs and market conditions.
- Enhances trading discipline by providing structured rules.
Drawbacks
- May produce false signals during sideways or low-volatility markets.
- Requires constant monitoring and quick execution of trades.
- Risk of overtrading if signals are not filtered with additional analysis.
- Performance can vary across different currency pairs and timeframes.
Case Study 1
On the EUR/USD 1-minute chart, a green volume bar from the Hawkeye Volume indicator appeared, indicating buying pressure.
The Precision Trend Histogram was green, confirming a bullish trend.
A buy trade was executed at 1.1850, with a stop loss at 1.1840 and a take profit at 1.1865.
The trade reached the take profit level within 10 minutes, yielding a 15-pip gain.
Case Study 2
On the GBP/JPY 5-minute chart, a red volume bar from the Hawkeye Volume indicator signaled selling pressure.
The Precision Trend Histogram was red, confirming a bearish trend.
A sell trade was entered at 150.30, with a stop loss at 150.50 and a take profit at 149.80.
The trade hit the take profit level within 15 minutes, resulting in a 50-pip profit.
Additional Strategy Tips
- Focus on major currency pairs with tight spreads to reduce trading costs during scalping.
- Trade during high liquidity sessions, such as London and New York overlaps, to increase signal reliability.
- Combine the strategy with support and resistance levels to confirm entries and avoid false breakouts.
- Consider the trend on higher timeframes (e.g., 15-minute or 1-hour charts) to filter trades in the direction of the main trend.
- Keep your trading sessions short; scalping works best with focused, disciplined trading bursts.
- Maintain emotional discipline and avoid overtrading during periods of low volatility or choppy market conditions.
Download Now
Download the “hawkeye-volume-indicator.mq4” indicator for Metatrader 4
