Better Volume 1.5 Indicator

The Better Volume 1.5 indicator evaluates market activity by displaying a histogram that represents trading volumes over time.

In financial markets, volume represents the number of traded lots, contracts, or shares within a given period. Since the decentralized structure of the Forex market makes it impossible to measure total traded volume directly, traders rely on tick volume, which reflects the number of price changes during a specific time interval.

By analyzing tick volume, Better Volume 1.5 helps traders interpret market behavior, identify participation levels, and understand the intentions of market participants. This insight can be used to develop more effective trading strategies based on market activity.

 Features of the Better Volume 1.5 Indicator

Better Volume 1.5 is an enhanced and more advanced version of the standard volume indicator commonly available in trading platforms.

Its key advantages include:

Advanced Volume Classification
Unlike traditional volume indicators that only show rising or falling tick counts, Better Volume 1.5 categorizes volume into color-coded groups for easier interpretation.

Integrated Moving Average Signal
The indicator includes a moving average line that can generate additional signals when it crosses the volume histogram.

Information Volumes (Market Conditions)

Blue – Normal trading activity

Yellow – Low activity (market uncertainty — avoid trading)

Green – Increased activity due to major repositioning (direction may be unclear)

Trading Volumes (Actionable Signals)

Red – Strong buying interest / high market activity

White – Strong selling activity

These signals help traders identify potential trading opportunities while maintaining awareness of the broader market context.

 Buy and Sell Strategies

Trading decisions should always align with overall market sentiment and prevailing trends.

Buy Strategy

Look for rising buying volumes.

Confirm with an upward trend line.

Place Stop Loss below the trend line.

Exit when a sell signal appears.

Sell Strategy

Look for increasing selling volumes.

Confirm with a downward trend line.

Place Stop Loss beyond the trend line.

Exit when a buy signal appears.

Combining volume signals with Trend Confirmation significantly improves trade reliability.

 Usability Considerations

The indicator uses multiple color classifications, which may initially appear complex. However, its structured separation of informational and trading volumes, along with improved filtering and clear visual signals, makes it a powerful and practical tool for volume-based analysis.

Conclusion

Better Volume 1.5 provides traders with a deeper understanding of market activity by categorizing and interpreting trading volumes. By combining volume analysis with trend confirmation, traders can make more informed decisions, improve timing, and enhance overall trading performance.