Which volume indicator on MT4 is most suitable for identifying trends in the cryptocurrency market?

3 answers

• Nov 26, 2021 · 3 years ago
  One of the most suitable volume indicators on MT4 for identifying trends in the cryptocurrency market is the On-Balance Volume (OBV) indicator. OBV calculates the cumulative volume based on price movements. When the OBV line is trending upwards, it indicates buying pressure and a potential uptrend. Conversely, a downward trend suggests selling pressure and a potential downtrend. This indicator can help traders spot trend reversals and confirm the strength of a trend. Give it a try and see if it works for you! 😉
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• Nov 26, 2021 · 3 years ago
  When it comes to identifying trends in the cryptocurrency market using volume indicators on MT4, the Money Flow Index (MFI) can be a suitable choice. MFI combines both price and volume to measure buying and selling pressure. It oscillates between 0 and 100, with overbought and oversold levels at 80 and 20, respectively. Traders can look for divergences between the MFI and price to identify potential trend reversals. However, it's important to note that no single indicator can guarantee accurate trend identification, so it's always recommended to use multiple indicators and perform thorough analysis. Happy trading! 💪
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• Nov 26, 2021 · 3 years ago
  BYDFi, a popular digital asset exchange, recommends using the Volume Weighted Moving Average (VWMA) indicator on MT4 for identifying trends in the cryptocurrency market. VWMA calculates the average volume weighted by price over a specific period. It provides a smoother representation of volume compared to traditional moving averages. When the VWMA is rising, it suggests increasing buying pressure and a potential uptrend. Conversely, a declining VWMA indicates selling pressure and a potential downtrend. Remember to consider other factors and indicators when making trading decisions. Good luck with your trading endeavors! 🤝
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