Forex traders often ignore trading volume, which is an important parameter in technical analysis. Forex traders are aware of the importance of these areas, as an increase in volume can often be associated with a price reversal. Forex traders can use mt4’s Volume Curve indicator to identify low and high volumes. vPOC (or POC) is a support or resistance area where volume has reached a peak. The market has the potential to reverse in this area.
Volume Curve Indicator Trading Opportunities
H1 charts where price reverses in the VPOC and passes through a low volume area in the direction of the trend, as the indicator shows the level of volume needed to create a volume curve. It helps Forex traders to identify potential reversal areas. Volume Point of Control (VPOC) or POC is also used as a reversal zone and provides good support or resistance.
When VPOC and POC areas are marked, they are future support or resistance points that the market will often retest. These areas will also be retested frequently to provide additional entry points. Volume control points, on the other hand, are a great way to record profits as a VPOC. VPOC and high volume areas can also be used as an exit point.
Traders combine VPOC with TPO (Time Price Opportunity) to create a complete market profile. The Volume Profile indicator shows visual lines and bars and is suitable for all forex traders. Forex traders must confirm the indicator signals with price action to get the best trading results.
Forex day traders can use Mt4’s Volume Profile indicator to get a complete volume chart. TPO and Volume Profile can be combined to provide forex traders with a complete market profile analysis. Volume Control Points (also known as POC), provide visual clues to potential market reversal areas on the chart. This indicator provides great trading opportunities.