On Balance Volume (OBV) is a free Metatrader 4 Forex indicator that can be used for both trade entry and exit or as an additional bull/bear trend filter.
The indicator appears as an oscillator in a separate MT4 chart window.
The indicator works very well for scalping currency pairs during the London and New York trading sessions.
Buy & sell signals:
- Open a buy trade as soon as the OBV turns back above the 0.00 level (bullish).
- Open a sell trade as soon as the OBV turns back below the 0.00 level (bearish).
- Reverse the open position whenever an opposite signal appears on the chart.
The indicator can be used as a standalone trading tool for both trade entry and exit.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download:
Download the “OBV.mq4” indicator for MT4
Indicator Example Chart (EUR/USD H1)
The picture below shows the On Balance Volume 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 On Balance 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: Oscillator
Does the indicator repaint? No.
Download Now:
Download the “OBV.mq4” indicator for Metatrader 4
How to install this indicator on Metatrader 4?
Open the Metatrader 4 platform
From the top menu, click on “File”
Then click on “Open Data Folder”
Then double click with your mouse button on “MQL4”
Now double click on “Indicators”
Paste the OBV.mq4 indicator in the Indicators folder.
Finally restart the MT4 platform and attach the indicator to any chart.
How to remove the indicator?
Click with your right mouse button in the chart with the indicator attached onto it.
Select “Indicator List” from the drop down menu.
Select the indicator and press delete.
How to edit the indicator’s inputs and parameters?
Right click with your mouse button in the chart with the indicator attached onto it.
From the drop down menu, click on indicators list.
Select the indicator from the list and press edit.
Now you can edit the indicator.
Finally, press the OK button to save the updated configuration.