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 candles correctly is crucial:
- 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 indicator’s 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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The picture below illustrates how the Volume Candlesticks indicator looks like when applied to the MT5 chart.
How To Buy And Sell Currency Pairs With The Volume Candlesticks Indicator?
Find a simple trading strategy below:
- Buy market condition: The overall trend must be clearly 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 market condition: The overall trend must be clearly 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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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!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration