Features of the Weis Volume Indicator
For the MT4 trading platform, a well-liked and free Forex indicator is the Weis Wave Volume Indicator. It is a helpful tool for traders looking to learn more about the volume of a currency pair. David Weis, a profitable trader and the author of the book “Trading with the Odds,” created this indicator.
The Weis Wave Volume Indicator measures the volume of a currency pair during a specified period. It shows the volume as a wave-like pattern, where each wave corresponds to a specific volume level. Traders wishing to spot trading opportunities can find value in the indicator. For instance, a significant volume spike displayed by the indicator may indicate a strong trend. Similarly, a low volume on the indicator may suggest that the market is consolidating and getting ready for a breakout.
How the Indicator Can Benefit You
The WeisWave indicator does not show simple buy and sell signals with arrows or line crossovers like other indicators.
When studying the chart:
- On bullish waves, volume indicates the strength of the demand (buyers).
- On bearish waves, volume indicates the strength of the supply (sellers).
You can use the WeisWave indicator to compare the volume and the distance moved by the wave. To do this, you must evaluate:
- How long the wave has lasted;
- How much the price has changed;
- How much cumulative volume does the wave have (what does the WeisWave indicator show exactly)?
Indicator Setting Description
Dif (difference): This parameter determines the price movement in points, which must occur against the current wave to start counting a new wave. The higher the value, the lower the sensitivity. The waves will replace each other less frequently.
LabelShift: This input allows you to change the label shift value.