Volume Trading System

As an experienced forex trader, I can attest to the critical importance of identifying overbought and oversold areas in the market. The forex market is known for its volatility and rapid price movements, making it challenging to make good trading decisions. However, by understanding these areas, traders can anticipate potential trend reversals and make profitable trades.

Utilizing the Volume Trading System Strategy is one of the most effective ways to identify overbought and oversold areas in the forex market. By analyzing the volume of candles, the system generates accurate signals that indicate when the market is likely to reverse. This approach provides traders with reliable insights into market trends and helps to filter out false signals that can lead to losses.

As a forex trader, I have found that understanding overbought and oversold areas and utilizing the Volume Trading System Strategy is critical to my success in the market. By doing so, I can possibly maximize my profits while minimizing my risks. I encourage all traders to take the time to learn about these important concepts and incorporate the Volume Trading System Strategy into their trading approach, Let’s take a look at how could we use Volume Trading System to our trading advantage.

What is the Volume Trading System?

The Volume Trading System is a professional tool that uses overbought and oversold points to predict trend changes. These points are based on the volume of the candle and are designed to provide the most accurate signals possible. The system’s developers claim that the signals generated by its indicators do not repaint or recalculate, which means that if arrows appear on the chart, they will not disappear.

This system is highly versatile and can be used in a variety of markets, including Forex, Options, and Stock Markets. Its universality makes it a valuable tool for traders who want to apply a consistent strategy across multiple markets. By relying on the system’s signals.

Volume Trading System - MT4
Volume Trading System – MT4

Key features of the Volume Trading System

  • Based on volume: The Volume Trading System uses the volume of the candle to identify overbought and oversold points, which are then used to generate accurate signals for predicting trend changes.
  • Non-repainting indicators: The system’s indicators do not repaint or recalculate, meaning that signals generated will not disappear once they appear on the chart.
  • Universality: The system can be used across various markets, including Forex, Options, and Stock Markets, making it a versatile tool for traders seeking consistency in their strategy.

Volume Trading System Strategy

The Volume Trading System utilizes blue signals to indicate oversold levels that suggest an increase in price is imminent, while red signals indicate overbought levels where a decline in price is likely. To filter out false signals, the system includes a histogram located below the chart. A valid signal for opening a trade is indicated when the color of the signal aligns with the color of the histogram.

Buy Signal

  • Blue Arrow: A signal that denotes an overbought level where bears typically lose their ability to further drive down the price.
  • Vertical volume Line: A confirmation that the bulls have gained the necessary power to drive the price upwards in the market.
Volume Trading System Buy Signal
Volume Trading System Buy Signal

 

Sell Signal

  • Red Arrow: A signal that indicates an oversold level where bears usually lose their ability to push up the price.
  • Vertical volume Line: A confirmation that the bears have gained enough power to drive the price downwards in the market.
Volume Trading System Sell Signal
Volume Trading System Sell Signal

Volume Trading System Strategy Pros & Cons

Pros

  • Non-Repaint Signals: The Volume Trading System provides good forex signals for predicting trend changes, improving traders’ decision-making process and potentially leading to more profitable trades.
  • Versatility: The system can be applied to various markets, including Forex, Options, and Stock Markets, making it a versatile tool for traders looking to apply a consistent strategy across multiple markets.
  • Non-repainting indicators: The system’s non-repainting indicators ensure that signals generated will not disappear, allowing traders to make informed decisions based on reliable information.

Cons

  • Requires expertise: As a professional tool, the Volume Trading System may require some level of expertise and understanding of technical analysis to fully utilize its features and benefits.
  • Potential false signals: Despite its accuracy, the system is not infallible and may generate false signals that could lead to losses if not properly filtered out.
  • No guarantee of success: While the system can improve traders’ decision-making process, it does not guarantee success and may still result in losses. Traders should exercise caution and manage their risk appropriately.

Conclusion

By utilizing the Volume Trading System Strategy, traders can accurately identify these areas and anticipate potential trend reversals, ultimately maximizing profits and minimizing risks. The system’s key features, including its reliance on volume, non-repainting indicators, and universality, make it a valuable tool for traders across various markets. As traders, we should take the time to learn about these concepts and incorporate the Volume Trading System Strategy into our trading approach to increase our chances of success.

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