Balanced Volume Oscillator Download for MetaTrader 4 - Free - [TFlab] - MT4/MT5 Resources

The Balance Volume Oscillator is one of the MetaTrader 4 indicators designed to measure volume in the market and help traders predict the strength of a trend or the likelihood of a change in price direction.

This indicator combines trading volume with price changes and answers whether money is flowing in or out of the market. Therefore, the Balanced Volume Oscillator is a useful tool for identifying trends and potential reversal zones (PRZ).

Balanced Volume Oscillator Specification Sheet

In this table, the details of this indicator are briefly presented:

Indicator Overview

The histogram in this indicator shows current volume relative to average period volume. Additionally, the colors represent specific changes in volume compared to average period volume, known as Fibonacci levels .

Histogram bars are color-coded according to volume size:

• Red : Indicates that the current trading volume is lower than the average cycle trading volume
• Green : Represents that the trading volume exceeds the average cycle trading volume by 38.2% Fibonacci level
• Yellow : Indicates that trading volume is increasing between 38.2% and 61.8% Fibonacci levels above the average periodic trading volume.
• Purple : Shows volume increasing above average cycle volume between 61.8% and 100% Fibonacci levels
• Blue : A signal indicating that the trading volume exceeds 100% Fibonacci level relative to the average period trading volume

Indicators are in an upward trend

In an uptrend, red in the Balanced Volume Oscillator histogram indicates declining volume. This decline could mean weakness from sellers and increased momentum in the price trend.

Traders can enter a Buy position when price approaches support, volume increases at a specific level (blue bar), and is accompanied by a confirmation candlestick.

Indicators are in a downward trend

In the Ethereum (ETH) price chart, when new highs are formed, the color of the histogram bars changes to yellow, indicating that volume is entering the market.

This could signal abearish divergence and enhance the likelihood of a trend reversal.

In this case, traders should look for confirmation signals such as a reversal candlestick or a breakout of a resistance level.

Indicator Settings

In the image below you can see the complete details of the indicator settings:

• Volume calculation period : number of periods for trading volume calculation
• Theme : Automatically adjust the display theme
• Red coloring of negative bars : displays negative volumes in red
• The bar color is green in the range 0 - 38.2 : the volume range is 0 to 38.2, green
• The color range of yellow bars is 38.2 - 61.8 : the volume is in the range of 38.2 to 61.8 and is yellow
• Purple bar color range is 61.8 - 100 : Volume is in the range 61.8 to 100, purple
• Water coloring for bars above 100 : volume greater than 100, light blue

Conclusion

With this color scheme, traders can observe volume changes compared to the period average.

The Balanced Volume Oscillator performs better on short-term timeframes , such as 15 minutes, as volume tends to be higher in longer-term trends, resulting in weaker breakouts.

Traders can use the Auto F ibo indicator as a complementary tool to this indicator.