When the volume [B]bar[/B] is red, it just means it was lower than the previous bar, that’s all…it doesnt mean sell. I didnt like it and changed it to green and dark green for a lower bar. You are just looking for amount of activity from the volume bar. (wicks are on price candles, not volume bars).
Here is an interesting observation. On friday New York open, E/U was stuck in a range and barely moving. Everyone must have thought it’s done for the week… BUT, the volume was VERY HIGH during that chop…meaning, THERE WAS ALOT OF ACTIVITY, but price wasnt moving out if its small range.
I looked at the 5 and 1min chart pa. I saw that up moves were clean and sharp, and down moves were slow and messy, and were always met with high volume to reverse it back up.
This is called accumulation. Big buyers are placing there orders in spurts, then letting price fall to get in at the same or better price. WHY? because if they place the entire buy position at once, price would shoot up, and they would not have had time to ACCUMULATE a large position.
Needless to say, when this thing finally broke, it took off like a rocket 100 pips or so. I was along for the ride, but unfortunately I closed too soon. With all that accumulation, I should have known better to leave the trade on.
So there is another example of the simple volumes indicator for mt4, giving you the inside scoop