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Friday, September 2, 2011

Volume indicators

Volume indicators

This technical Volume indicators, allowing to judge the volume of trading. The initial data they are using "volume" of the dynamics of quotes for a specific financial instrument, the broker coming at a time.
Here are a few of the indicators included in the Meta Trader:

a) Indicator Volumes.

As you might guess, Volume indicators gives an indication of trading volume, showing the trading activity of investors. The map is in the form of a histogram - dozens of columns whose height is higher, the higher oyuemy bidding.
Use this indicator as follows:
* With the growth of the Volume indicators at a time when rising prices, often going further increase in prices. Must be purchased. And when the volume increases and price decreases to sell.
* If prices are as high as before, while the volume decreased significantly (for an uptrend), must be prepared for Advanced Member trend reversal.
* If prices leapt in the amount of times larger than the average of the indicator, should be ready for a change of trend, or to roll back.

b) Money Flow Index - MFI (index of cash flows) Volume indicators

Shows the intensity of coming into the asset and taking them out of it.
Construction of the indicator is similar to RSI, but in this case is taken into account also the volume.
In the Volume indicators analysis of the indicator should be considered:
* Values ​​of the indicators below 20 and above 80 signals, respectively, of a potential base and top of the market.
* Differences between movements in prices and an indicator. When prices rise at the fall of the value Money Flow Index (or vice versa) is most likely a price reversal.

c) Accumulation / Distribution, A / D (an indicator of accumulation / distribution) Volume indicators

Volume indicators is constructed based on the change in volume and price. Volume at the same time acts as a weight ratio of a price change - the higher the volume (ratio) the greater the price effect on the indicator.
Volume indicators Is a variation of the indicator On Balance Volume. Used to confirm price changes by measuring the volumes of trades.

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