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Volume weighted MA MT5 Forex Trading Indicator

Amandeep Sonewane | Aug. 20, 2019
Volume weighted MA MT5 Forex Trading Indicator

You can now download the Volume weighted MA MT5 Forex Trading Indicator for free on AtoZ Markets indicators gallery.

Pattern-based trading strategies are one of the most popular types of trading strategies out there. Newbies are especially drawn towards these types of strategies.

Using moving averages are one of the best tools to use when trying to identify areas where price could retrace to. You could either use a single moving average and weight for the price to retrace to the area around that particular moving average or use multiple moving averages and use the area between those moving averages as an area where price could retrace to. This is because even on a strongly trending market, the price would still come back to the mean or the average. This is what retracement is all about.

The idea of Volume weighted MA MT5 Forex trading indicator is in giving the bar with a greater volume a greater weight in averaging. The volumes are summed for the ‘Length’ period, then the volume of each bar is divided by the sum — this is the weight of each bar.

Timeframe: Any

Currency Pairs: EURUSD, GBPUSD, EURJPY, GBPJPY, and EURGBP

Trading Session: Any

How to trade with Volume weighted MA MT5 Forex Trading Indicator?

Buy (Long) Trade Setup Rules

Entry

  • The two Volume_Weighted_MAs should be above the 200 EMA
  • The 20-period Volume_Weighted_MA should be above the 50-period Volume_Weighted_MA
  • Price should expand upwards forming the pole
  • The 20-period Volume_Weighted_MA should tilt upwards
  • Identify a bullish flag
  • Wait for a candle to breakout of the flag or pennant
  • Enter a buy market order at the close of the breakout candle

Take Profit

  • Set the take profit target at 2x the risk

Sell (Short) Trade Setup Rules

Entry

  • The two Volume_Weighted_MAs should be below the 200 EMA
  • The 20-period Volume_Weighted_MA should be below the 50-period Volume_Weighted_MA
  • Price should expand downwards forming the pole
  • The 20-period Volume_Weighted_MA should tilt downwards
  • Wait for a candle to breakout of the flag or pennant
  • Enter a sell market order at the close of the breakout candle

Take Profit

  • Set the take profit target at 2x the risk

How to download and install an indicator?

In order to install the indicator on your MT5 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT5>Indicator folder of the MetaTrader5 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Volume weighted MA MT5 Forex Trading Indicator” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.