The swing index forex indicator is a volume-based mt4 forex indicator used to confirm a trend reversal using volume bars on the chart.
Volume bar size indicates the speed of price movements in a specific time interval.
This volume is not the original volume in forex trading because it is a tick-based volume. It measures the speed of ticks in small intervals and shows the volume in the shape of bars.
How does the swing index mt4 forex indicator work?
This indicator predicts the trend reversals of the market. Each volume bar of the indicator represents the activity of trading in each candlestick. For example, a significant volume bar means a big candlestick will form, and a small volume bar results in a small candlestick.
Green and red color bars represent the bullish and bearish candlesticks on the chart, respectively. Green color means a bullish trend, and red is a bearish trend.
A trend reversal occurs when a big volume bar results in a small candlestick. A big candlestick should form on the chart due to the enormous volume bar, but it doesn’t happen sometimes and results in a trend reversal.
Trading Signals
The swing index indicator in mt4 is totally based on the volume. That’s why you should use this indicator to learn the volume spread analysis to trade.
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Buy signal
A bullish reversal happens when a green climax forms in the indicator’s window. This means price changes trend from bearish into bullish.
Sell signal
A bearish reversal happens when a red volume climax forms in the swing index indicator, meaning the trend will change from bullish to bearish.
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Conclusion
Before trading using the swing volume index indicator in MetaTrader 4, learn about the formation of volume bars in forex. Then, after learning VSA, you will be able to trade by using this indicator effectively.
Add other confluences of price patterns to increase the winning ratio of this indicator.
Make sure to backtest this indicator before trading on a live account.
Swing Index Forex Indicator MT4 FREE Download
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