Many modern terminals have added special modules designed to analyze the dynamics of balance and funds in the account. Unfortunately, the MT4 terminal in this regard is outdated, but the balance indicator can easily compensate for such drawbacks.
First of all, we'll figure it out why he is generally needed, because each trader knows himself perfectly well what it happens on his account, and if it is necessary to evaluate historical data, you can always build a statement and export data to Excel, after which it is examined by any available statistical way.
Of course, if only one trading account is considered, you can go to such a primitive way, but if you need to study the situation on several accounts, you will have to spend a lot of time on systematization and analysis of information.
Why does such attention to pay a balance sheet schedule? There are enough reasons, in fact, ranging from the analysis of its own trading accounts on which robots trade, and ending with the study of the situation on the accounts of traders offering services for trust management (in this case The investor gets access to the history of transactions with the help of an investor password).
Equity.mq4 - Best balance indicator today
The balance indicator today is not as easy as it may seem at first glance. The fact is that many algorithms in free access are either absolutely useless, or work with errors (do not correctly calculate the equity), or they have stopped working at all after updating MT4 to 600 build.
The last problem did not bypass the Equity algorithm, created on the MQL4 portal in 2007 (wrote its user under the nickname "Surgeon"), but programmers quickly corrected errors that appear when compiling, and today it can be downloaded called "Equity_v7_MOD". The expert looks like this:
The seventh version did not appear immediately, but somewhere a year after the first developments. It took into account all the wishes of users and fixed some disadvantages (unfortunately, not all), so I try to reanimate earlier versions not advise - they definitely can't find any hidden advantages.
Set the balance indicator
In the settings window, the first variable is called Only_Trade and is designed to display only bidding results, i.e. If you enable the value "True", the indicator will display a clean result from trading for the selected period, not the dynamics of the balance.
We recommend that you always include this option. If you leave the value "false", it is not enough that the result will be distorted due to removal and replenishment, it will still need to download the entire history of the transactions, and many brokers, as you know, archive and compress these data. Plus, if you work only with a graph of the result, you can choose any period in the counting history (last day, week, month, etc.).
The result of trade in the account looks good, but, judging by the discrepancy between the schedule of balance and funds, the work is carried out without stops (which is not always bad, because much more depends on the strategy). So in one action you can easily appreciate the style of the work of the trader or advisor through the invest-password, without studying hundreds of transactions from the report.
If you enable Variables only_buys and Only_sells, then the balance indicator will show separately the result from sales and purchases, but here it should be borne in mind that the main window will have to install two experts, one to track long positions, and one for short. Let's return to our test example:
Obviously, in this case, the strategy is universal, and, apparently, trend, since in periods of strong growth in prices, the aggregate profit in long positions increases, and with a clearly bear trend, the profits bring short positions - this is a certain plus strategy.
Create confused periods, in particular, at long positions, the loss increased just before turning the trend, i.e. There is an attempt to catch a turn. If such situations are not uncommon, then the trader is better to fulfill clarification whether this is a part of the strategy, or a consequence of errors. We pay attention - on the usual "STATE" similar nuances are invisible, which creates fertile soil for manipulations when advertising projects.
Also, the balance indicator may display data from the drawdown and profit factor, this will require the value "true" opposite the show_info variable. Here, one fact should be noted - for the overall history, the maximum drawdown is shown twice as much more real magnitude, and the profitability factor is two times less.
It would be possible to write off the algorithm to the feature of the algorithm, they say, some special non-standard assessment of profitability is applied, but since drawdown should always be the same value, the error clearly crept into the code, especially when importing not all history, but only a certain period, result Computations converges with a standard report from the terminal.
What other opportunities there is a balance indicator
Above, we listed the most popular settings, but the functional Equity_v7_mod is much wider. For users who prefer roboching manual speculation, the variable Only_magics will be useful, with which you can specify the magic number of orders with which a specific adviser works.
Checked - the balance indicator "pulls out" from the general history exactly these orders, and the rest ignores when calculating Equity. Thus, in one account you can work with several advisers, i.e. Now it is not necessary for the purity of the experiment to allocate a separate account for each robot.
The same applies to the only_symbols change, with which you can set a trading tool ticker for analysis. If the corresponding field is to score, for example, EURUSD, then the indicator will show the result only for the euro / dollar pair. Pay attention, you need to accurately copy the name of the tool from the terminal, i.e. If the "#" (#USDX) sign is standing before the ticker, it will also have to specify in the field.
A similar function is configured to configure Only_Current, if you select the value "True" opposite it, the volume indicator will display total result By the totality of transactions for the tool, on which it is installed on the graph.
Repeat again - using only_symbols for analysis, you can choose any tool (for example, the indicator itself is on the gold schedule, allowing you to import data only for the euro / dollar), and the only_current variable works only with orders characteristic of the current schedule. Which option to use - the trader itself decides.
And the last "bonus" from the developers is a beep when achieving a critical drawdown. It is configured using the Alert_DrowDown variable, but it should be remembered here about the problem with the display of the true size of the drawdown, although if the expert commands it in case of an error, it will definitely not be worse.
Completing the review, we recall about another feature of such indicators - after installing it on the working window, the schedule is recommended to update, for example, if the equity schedule is built on the H1, install the algorithm on the watchmaker, then we switch to any other timeframe and return it back H1. After this operation, the result will definitely be correct. A source:
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Forex Indicators Equity and Balance: Equity_v7.mq4
The indicator is created to obtain information about the current account status. You can get information about the Equity and balance on the account history. Also calculated open positions in order to update the schedule online. There is also the possibility of building charts of free funds and margin, but only using current values.
The indicator allows you to build graphs that take into account only those orders that correspond to the signs important for the trader.
For example, you specify, as well as the tool, and the indicator makes a recess from the history of only orders based on the analysis of equity and balance. Thus, you evaluate work, such as several trading systems on one account and do it in a convenient format.
For clarity, there is an opportunity not to take into account the initial balance, as well as replenishment or removal of funds. To do this, there is an ONLY_TRADE parameter. In this case, a history is used for any period, otherwise the whole story needs. This mode is needed in order to evaluate the work for reporting period.
The indicator takes into account the existing accomplices of equity and determines the recovery factor, this is used by the Show_info parameter.
In order to analyze the Schedule of Equity and Balance, you can use other programs. To do this, the File_Write parameter is available in the indicator.
Download
Forex Equity and Balance Indicators: I-Baleq.mq4
The indicator analyzes the data from the account balance history, on the pair schedule on which is installed. This indicator is great for analyzing foreign accounts for investment passwords, on the basis of Equity and Balance. It is very similar to the previous one, but if it seemed to you that he is less convenient, then this is quite suitable for you.
How useful to publish?
There are many ways to simplify your trading, but many still do not notice the ability to offer them modern world. To correct this, the indicator will be discussed below - the information panel, this tool is available in many versions, among which each trader will find something convenient for themselves.
For those who know what is looking for, we will immediately link to download the archive with the best information indicators, and now we will proceed to the review of this class of instruments, listing and describing the best of them at the current time.
How to get topical information right in mt4
Each trader probably faced trend, oscillatory and other indicators, but what is the information group represent? These are the tools, the main task of which is to make visual important information about trade conditions that can strongly affect the final result.
In turn, Forex Information Indicators for MT4 are divided into such basic subgroups on the specifics of their functioning:
- temporary;
- news;
- to control income;
- for calculating volumes;
- on display spread;
- to monitor the situation at a larger time interval;
- to inform on the schedule of signals from other indicators, which usually have to display in separate windows.
The installation process is not different anything. specific devils. After you decide to download Forex Information Indicators for the above link, you only need to unpack the archive, select the file of the desired tool and move it to the "Indicators" folder of your Meta Trader 4 folder 4. To do this, you need to open it, click on the top "file" and go By "Open Data Catalog". As a result, a new window will appear, where there is a "MQL4" directory. Inside it is the desired folder. By placing the necessary files in it, the terminal must be turned off before using the terminal infopanels.
Temporary infoandels for MT4
The first type of information indicators, one way or another, is associated with time. These are tools that allow you to constantly see time until the end of the formation of the candle is displayed directly on the schedule trading sessions and much more. Make their general description meaninglessly, so moving immediately to brief review Each useful tool is separate.
B-Clock.
The first of the considered indicators is called the B-Clock, and its modified version of Tro Modified Version is presented in the archive. The purpose of this tool is to remove the left at the top of the timer, which shows how much it remains until the end of the formation of the current candle.
iStocktimes
The second indicator is a full-fledged information panel in MT4, displayed at the top on the right on the graph. It also shows the temporary parameters of the generated candle, and is also useful to display the current spread, swap and value of the ATR trend force indicator.
Time Universal
Another interesting representative of the information panels is called Time Universal. With it, it is possible to constantly see how long it remains until the end of the formation of the selected trading candle on the traded timeframe, even if the trader changes the time interval of the display, for example, to see older timeframes.
In addition to the usual version, there is still modified with the addition of UNIVERSAL_FIX, which allows you to display this information panel not at the price schedule, but in the other indicator window.
i-sessions-a
The latest version of the popular I-SESSIONS-A information indicator allows directly on the price schedule to display, what a trade challenge is currently operating on the market.
IN lately He pleases with other useful options, for example, now there is a number of items that the asset passed for a certain period.
Xi-AsianSession.
This information indicator displays the time on the market of exclusively asian session, indicating when it starts and ends. Our site has a detailed article about work at this time of the day, when you can be quite safe and confidently scalp, getting a decent income at the very quiet time on the market.
News Indicators with infoandels
The following type of forex information indicators allows you to not forget about the exit of important news, which is especially important for those who work within the day. Using one or another of the described tools described, the trader can withdraw a convenient way for himself information about the upcoming economic publications directly at the price schedule, always remaining aware of events.
Ffcal
The best information panel for displaying news with a bunch of settings. The archive above can download the up-to-date this moment Version, although this indicator is tirelessly improving.
Newsinfo.
NewsInfo can be an alternative to the past version - another representative of high-quality news indicators, allowing him to choose one of several best news agencies to obtain data on future economic publications.
A pleasant bonus of this auxiliary panel will be the function of disabling automatic trading of experts before news, when increased volatility can lead to unpleasant and unexpected consequences.
Truly News Indicator
For traders who love to cut off all unnecessary, this information panel is useful. Its functionality allows you to specify the display of only those news that are relevant for traded currencies. That is, if the work, for example, is not conducted in the Australian dollar, the indicator will not display news on AUD in order not to distract the main tools from trade.
When using news indicators, you should pay attention to several points:
- Be sure to check the adjustment of the time zone so that the data is displayed correctly. All the best information agencies allow you to change the calendar options, adjusting this parameter to exclude the delay of data or, on the contrary, their too early appearance.
- In order not to pay attention to minor events that interfere more than help, we recommend immediately configure the display of only the most important news. They are always marked with three icons (the heads of bulls, exclamation signs, etc.), so it is impossible to be mistaken.
- Be sure after installation, check the operation of the indicator, waiting for important news. If, on the fact of its publication, with a deviation from the predicted values, a strong price impulse occurs with a preliminary expansion of the spread, then, it means everything is perfectly configured, and in the future, you can safely rely on the work of the selected information panel. Do not be lazy to do this step, as it is extremely important for Forex to pay attention to the details from which they are formed general terms and Conditionsleading to success.
If the appearance of the price impulse does not correspond to the news to the news in the indicator, then you need to check the settings, turning attention to everything related to Hours, GMT, etc.
Infopanels for Control Profit for Forex
Traders aimed at success are necessarily keeping statistics of their trade, constantly analyzing the results financial operations. Of course, now a very advanced set of services for collecting and analyzing statistics offers, for example, such a service as MyFXbook, etc. But much more convenient will be the use of information indicators that directly in the MT4 terminal will display important data on profit or loss in Monetary or percentage ratio in real time.
iProfit.
Probably the most common indicator of such a plan that allows information about various trade aspects directly to the price chart panel.
Equity.
This informer displays two curves in a separate window - one to change the account balance, and the second in order to see how the excitement drawdown has changed. Who uses MyFXbook, knows how convenient graphics there are the results of trade and the load on the deposit in its process, which is very important when using martingale advisers and other systems without a clear stop.
Profit info
Another interesting indicator of the group under consideration will help withdraw statistics for individual trading approaches. Its main value is to recognize the results of a variety of strategies, because the trader in one account can also test automatic systems, and trading manually, focusing on levels or some tools.
The Profit Info panel fixes his individual Magic Number for each transaction, as a result of which it is easy to minimize the statistics on orders with the same designation to find out how effective they are.
Moreover, the trader can independently make a note next to each trading operation, it is easily easily found by him trade operationsTo explore their result.
Here is a screenshot with the settings of the Profit Info information indicator, allowing you to roughly estimate the possibilities of this super utility panel for each forex trader.
Info Indicators to determine optimal trading volumes
Another popular group of information panels helps to comply with the correct risk management, which is known to act as one of the cornerstone of Forex success stones. Only cautious actions of the trader in combination with an accurate choice of working volume for each transaction and taking into account stop loss make it possible to achieve advantageous mathematical expectation, which in the end will occupy the profit.
The indicators below allow you to get rid of the need to further use calculators, replacing them with convenient information panels, where the calculation of the volume can occur with support for:
- depot size;
- the magnitude of stop loss;
- the number of points of slippage, etc.
When calculating, you can rely on the value of the allowable stop in points or percentages.
Lot calculator
According to the name, this information allows you to choose the optimal size of the volume for the open position. Below in the screenshot you can see which parameters are specified by the indicator. No need to be afraid that the panel will block the schedule, as it can always be shifted in the right direction.
As for functionality, the indicator will independently calculate the permissible volume, based on the stop and risks in the percentage of the deposit. Also, the trader will be able to see the cost of 1 point of price movement, taking into account the selected volume, that is, it will receive all the information that the forex calculator usually gives.
Max lot.
This informer is interesting because it can be easily determined by the size of the maximum magnitude of the lot under the selected conditions - the type of asset, the amount of the deposit, the credit shoulder, etc. It may be necessary when overclocking the deposit or with news trading, when traders often include the market maximum possible For yourself volume.
Information assistants to control spread
Scalpers and traders who focus on news trading know how important it is to control the amount of the spread. After all, changing this important commercial condition He leads to a significant increase in costs for opening a position, which, in turn, can cause serious losses instead of the expected profit.
As a rule, the forex spread is inclined to increase much at such moments:
- opening Forex after weekends;
- closing the foreign exchange market before weekend;
- daily at the time of change of day, when the swap is charged for transferring positions;
- before important economic publications;
- at the moments of the crisis, the bright examples of which have recently been - the scope of the Swiss franc from the euro, the exit of the UK from the EU, etc.
For comparison - before publishing the data of the US labor market or the ECB session, the spread of EUR / USD can expand to 20-50 points, while it is usually in accounts with market execution seeks to zero and very rarely exceeds 1 point!
Ind Monitoring
Unlike Forex Indicators, which are displayed in the form of items directly at the moment, this allows you to estimate the change in the spread in a separate window in the form of a graph. Thus, it is possible to trace when, as in which periods expanded the spread from a particular broker.
The photo is not only the Ind Monitoring itself, located under the price schedule, but also the indicator to estimate the spread current.
Candle Spread Modern.
This tool shows not only the spread, but also the time remaining until the end of the candle at the selected gap. main feature The indicator is that it can give a graphic warning of a highly increased spread. That is, a trader who works inside the day for Forex may quietly trade, not paying attention to the spread until he sees the signal from the information panel. Very simple and convenient, and also flexible settings allow you to adapt Candle Spread to your tastes and preferences.
These are just the most popular indicators, but there are others, some of which, for example, allow you to maintain data on the change in the history. It can be extremely an important aspect Analysis of trade in its or using an adviser.
Information Assistants Control
Forex speculators that work on day charts, focusing on medium-term trade, strongly depend on swaps, which are both positive and negative. Who does not know, swap is a fee for transferring position through the night. Moreover, it is not charged over the weekend, but it can be accrued in a 3-fold amount in the middle of the week, as a rule, it occurs on Wednesday.
To control this parameter, special information panels have been developed, some of which possesses other useful features.
ZFXI SWAP.
A simple information panel for MT4, showing both swaps, and other useful information on the group of selected assets.
Spread and Swap.
Another useful informer installing directly on the graph in MT4 to display, as follows from the name, and spread, and swap.
Indicators for controlling major time intervals
Often to feed the signal to the operating timeframe, you must first examine how things are at a larger time interval. If work is carried out with one or two assets, it is easy, but when it is necessary to quickly assess the situation on a dozen or even several tens of tools, then everything becomes much more difficult.
Here, information indicators come to the rescue, which directly in MT4 give useful tips on what is happening on the older timeframe.
Stratman Minichart.
A very popular indicator that minor preview displays additional timeframes directly in the price chart window of the selected time interval.
Multi Instrument.
Another tool that allows not only to control current assetBut at the same time look at others. Below on the screen you can see how the pounds of the dollar additionally can also be seen currency pair Euro against the Australian dollar.
MCP or Multi Charts
Another useful information panel for MT4 displays in a separate window under the price charts of the quotation of other assets with important parameters relative to their movement.
In addition, in the new version of the indicator, you can not just watch other graphs, but also to ask for them to display technical assistants. For example, for additional graphs, you can set the display of the stochasty on the information panel, which can be downloaded in the archive by reference at the beginning of the article.
Comprehensive information assistants to assess the situation
Below we describe several comprehensive solutions to help evaluate the situation that develops on the forex for a number of important additional parameters.
P4L clock
This infopanel will help control the time, the value of the spread, the trend force with ADR and so on. Each of the useful options can be displayed or disabled if you wish, placing it also in accordance with your preferences and the data output itself in any of the corners of the graph.
InfoPanel with TSLS MOD
Very concise panel, which allows you to display swap, spread, lending shoulder and other trading parameters.
Other software utility
In addition to the information indicators and panels under MT4, which directly affect the analysis of market situations, there is also an additional software that should also be at hand at Forex trader.
Truly Screen Shot Indicator
This is decorated in the form of an indicator for MT4 softwareallowing you to take pictures from the screen. Yes, you can use the usual third-party applications, but it is often inconvenient and requires some time, forcing you to be distracted. While there is an opportunity to instantly fix an interesting situation, failure or error of the terminal / broker, etc.
isignal Of Trade.
This tool will always inform the Forex trader about the events taking place on his trading account. This strongly helps in cases where the trader uses PAMM services or autocoping services, as you can check what happens on the account at any time.
i-Uroven Zero
Such an informational indicator is useful to everyone who uses robots of griders or actively averaging positions, because it always displays where the level of break-even is located and how many points need to go through the price to finally merge the trading account.
Candle Body Size.
Convenient and useful informer, which reports the magnitude of each trading candle, reflecting this parameter in Forex points. Such information is extremely important for a number of trading systems, so such a data panel can be very useful.
i-Breakeven.
Another test tool for working with grids, which shows the break-even point.
If the robot started the bill in a strong drawdown, sometimes it is desirable to get into his work process in his work, independently putting Take profits for all orders to the level where they will at least bring zero income, but eliminate the risk of further retention of transactions.
Daily Data.
Super useful information panel with a lot of settings. Separate options can be installed or removed at your own way.
Draw Profit.
An interesting tool that retains the history of trade right on the chart. With it, you can see, not only where and when the deal was opened, but at what level there was a stop-loss, where a Take profit was installed and so on.
Results of the consideration of infopaneels
The above describes the most popular and useful indicators, as well as information panels under trade forex The MT4 terminal, which can be downloaded by one archive, and then choose tools suitable for your trafficking.
From time to time, each forex trader has a need for a detailed study of their own trading results. Unfortunately, the standard functionality MetaTrader4 allows only to build a generalized statement, which is not enough for an objective assessment of the profits / loss, so programmers have created a special indicator Equity.
First of all, we will describe than this indicator exceeds the usual report, the document of which can be saved in several formats:
- It builds schedules of balance and means in real time, i.e. Information is updated automatically.
- In the usual statement, the results are grouped immediately by set of operations, i.e. The line of funds is a balance from all transactions, and the equity indicator allows you to investigate the dynamics of the account in the context of tickers than significantly increases the reporting report.
- With this simple expert, you can smash the results of trafficking separately by purchases and sales, which is not possible to achieve the built-in MT4 functions.
The Equity V.7 indicator in Meta Trader 4 is set in a standard way as many, and you can download it here:
Setting the Equity Indicator
Despite the fact that this expert is not intended to analyze the current market situation, it is established by standard scheme. First copied to the appropriate terminal directory, after which clings to the price schedule.
Here I would like to note that the equity algorithm is better immediately attached to that asset, financial results According to which it will be the greatest interest, since in this case there will be less time for the setting.
So, the first function in the list of variables is called Only_Trade. If the value "false" is set here, the expert will display the dynamics of the balance "as is", i.e. In addition to the result from transactions, it will show all deposit replenishment and the facts of removing funds.
The following "Only_Current" variable is designed to configure an expert in such a way that it showed profit / loss strictly by the asset, which is installed on the graph.
Above, I have already made an emphasis on similar nuances when I recommended to cling Equity v.7 to the asset, according to which the most transactions consisted.
If the sharp need to study the results of trade in a certain asset in the other tool window (for example, the Equity indicator is set to EURUSD pair, and we need to calculate the profits and losses derived from oil operations), you will need to perform the following steps:
- Opposite the function only_current, choose False
- In the ONLY_SYMBOLS field, you manually prescribe a ticker tool that will be analyzed.
The following two functions (only_buys and only_sells) allow you to evaluate profit and losses in the context of purchases and sales, in particular, the following combinations are possible here:
- If the "false" value is set in front of both variables, the expert will build a total equity line;
- If only_buys \u003d true, and only_sells \u003d false, a fixed result will be shown only by long positions;
- If only_buys \u003d false, and Only_sells \u003d True, the expert will display profits / losses received from sales;
- If only_buys \u003d true and only_sells \u003d true, the indicator will work erroneously, so this situation should be avoided.
From the example presented above, it can be noted that the main income was obtained mainly from short positions (i.e., along the trend in the tact of price movement). Therefore, it is advisable to supplement the system with auxiliary tool, with which the accuracy of the trend assessment will increase.
The following SHOW_BALANCE function is designed to enable / disconnect the balance line. For example, if in front of this variable to specify the "false" value, the markup of the Equity indicator will look as follows.
As for the Show_Margin and Show_Free variables, they work with errors, so trying to configure them - this is a waste of time. Initially mentioned variables were intended to display margas and free funds.
And the last function switch is called Show_info. As you can already guess, it is used to display the information board, in which information is collected about the values \u200b\u200bof maximum and absolute phases.
Besides, in the settings of the Equity algorithm You can set the level of drawdown, after the achievement of which, the terminal will publish a beep.
Medium-term and long-term this feature Without need, since with a similar style of work, the score varies smoothly and slowly (there is time to track the dynamics). For aggressive scalpers and algotreers (trading with robots), said variable may be useful.
Thus, the equity indicator not only in a visual form shows the results of trading, it still helps to identify strong and weak sides used system.
ON BALANCE VOLUME (OBV) indicator - A simple classic oscillator displaying price fluctuations based on market volume changes for a certain period of time.
Principle cumulative Volume, on the basis of which the instrument was built, was first introduced in 1946, but he found wide fame only in 1963, after the book release D.Granvila « New strategy The most profitable day trade in the stock market».
Description OBV.
An impetus for creating an OBV indicator was the theory according to which a serious change in volume is always preceded by a strong price movement. The market should not necessarily respond immediately.
For example, in situations where the largest players owning certain information begin to invest in assets, from which most of the other participants tries to get rid of.
That is, the volume has already increased significantly, but the vector of price movement for some time on inertia is directed down. When the critical mass accumulates, the trend sharply unfolds and becomes ascending. Small and medium investors to him, of course, immediately join and make it even stronger. When major players decide to get rid of their assets in a similar way, a mirror situation arises.
Settings ON BALANCE VOLUME.
The balance sheet indicator is included in the basic package of most popular platforms, including. To configure it, you will need to specify only three basic parameters:
- « Apply K."- here set the price, on the basis of which the curve will be built. HIGH and LOW. - maximum and minimum bar, Close and Open. - closure and opening of the bar, etc.
- « Secure minimum / maximum"- to exhibit the lower and top levels of the indicator.
- « Style"- Selects how the curve will look like.
Independently calculate the value of the indicator OBV. It is not required, however, for general development, let's see how this is done, especially since the formula is not too complicated. If the closing price is higher than that previous periodIt is added to the indicator value. If the price is less than the predecessor, the volume of the current bar is deducted. In this case, the result will be minus. When prices are identical, a direct horizontal is displayed on the chart.
When calculating for forex market The indicators of teak volumes are used.
The main minus here is that the transaction is equal to one tick, regardless of its value. Roughly speaking, buying / selling per million is equal to buy / sell on the dollar. Of course, a similar equalization does not contribute to an objective assessment, but it needs to be taken as a given. That is why it is worth using the indicator only on day, weekly and other long timeframes. There are valued values \u200b\u200bthere. It should be noted that when analyzing OBV, as a rule, numerical values special attention Do not pay. The trader is oriented exclusively on the behavior of the curve.
Signals or how to use the OBV indicator
The indicator can be used:
- to confirm the current trend;
- to obtain signals of divergence and reversal of trend;
When each new maximum / minimum price schedule coincides with the corresponding extremum of the indicator, it means that you can talk about the presence of a steady ascending / downward trend.
If the vector is directed up, you can open a purchase transaction if down - for sale.
Naturally, the trend confirmation is not a signal to the trade transaction, but simply helpful information To reflection. In the state of the fly, the indicator is not over the boundaries of a certain horizontal corridor and does not forms consecutive peaks / spindles. During this period, strong trends in the market are absent.
In cases where the OBV curve does not have time for a price movement, "lack of confirmation" arises or divergence.
It is observed either at the top of the bull market, or at the base of bearish. In the first case, at the next price increase, the schedule responds to a slight decline. If the next maximum the situation is repeated, it means that the price movement is inertial and immediately turns out a reversal or correction. This is a sign that you need to look for a moment for opening. positions for sale.
If the price and curve OBV. synchronously updates at least minimum, but at some point the latter begins to grow a little, forms bull Divergence. This is the optimal time to open a purchase transaction. The downward movement continues on inertia, and soon the price will start growing. Open positions are closed immediately after confirming the change of the vector by other means of the inkanalysis.
The divergence is the only one, a truly significant, independent signal on Balance Volume, so it is worth treating it with due attention.
Often, the users of the indicator draw on the level of the level overbought / oversold. The intersection of any of these lines can mean the frequent reversal of the trend. If the top level breaks back, the position for sale opens. If the lower boundary crosses from above, a purchase transaction is formed. At the same time, there is always a risk that the trend will be too powerful, and the price will continue to move in the same direction.
Video - Trading with OBV indicator
Conclusion
Indicator OBV.it is not recommended to apply in short periods. Even on time-timeframes, strong distortions appear, depriving the work of a special practical meaning. We have already told about the reason for their occurrence, the high probability of serious discrepancies in the indicators of "money" and "teak" volumes.
As an independent OBV analysis tool is used very rarely.
Its usually use as a confirmation indicator to determine the trend vector. The ideas on which the tool is based have long been applied in many other, more complex and efficient programs. To those, for example, can be attributed indexes cash flow And, and others.
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