The Relative Volume MT4 (RVOL) stands as a prime example of forex software that provides a strategic edge to traders. It’s an indicator that takes the average volume of a certain number of trading days, usually set to 20 by default, which roughly translates to a month’s worth of trading data. This data representation makes it straightforward to compare the trading volumes of different sessions.
Understanding the RVOL Forex Indicator
The Relative Volume MT4 presents data in an easy-to-understand histogram format, utilising three colours to indicate volume levels. When the volume is above average, the histogram color is green. Yellow signifies average volume, while red indicates below-average volume.
Implication of Volume Analysis in Forex Trading
The RVOL Forex indicator offers valuable insights into the market’s commitment towards a price move. For instance, if there is a breakout of a range or penetration of a crucial level, you can assess whether there is substantial volume supporting the move. This concept is equally applicable in assessing the strength of an impulsive move and its pullback.
Addressing Historical Data Limitations
One aspect to be aware of when using the RVOL indicator is the necessity for sufficient historical data. At times, as you scroll back to past sessions, the histogram may start to appear distorted. This issue usually indicates a need for more historical data. In such cases, you can scroll back as far as possible, reload the timeframe, and the histogram will recalculate based on the available data.
Benefit of High-Resolution Example Images
For a better understanding of how RVOL works, high-resolution example images are available in the comments section of the product page. These images provide a clear illustration of how the histogram changes based on different trading volumes over time.
FAQ
What is the default setting for the number of days in RVOL?
The default setting is 20 days, which roughly corresponds to a month of forex trading.
What do the different histogram colors represent in RVOL?
Green indicates above-average volume, yellow shows average volume, and red signifies below-average volume.
What should I do if the histogram appears distorted?
If the histogram appears distorted as you scroll back to past sessions, it generally means you need more historical data. Scroll back as far as possible, reload the timeframe, and the histogram will recalculate.
For an independent testing of the Relative Volume MT4, you can visit forexroboteasy.com. You also have the option to subscribe to updates on the testing results of this product. Share your experience of using Relative Volume MT4, your input can prove invaluable to other traders. Remember, this is an independent product review and is meant to provide an objective analysis of the RVOL Forex indicator.
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