Author: Vadim Shumilov
The Normalized Volume indicator is a powerful tool designed to help traders filter out false signals that often pop up during sideways market movements.
This indicator works on the principle that significant trend movements are typically backed by an increase in market volume. Essentially, the Normalized Volume indicator uses both volume and price to provide insights into market strength, featuring low and high volume filters to enhance accuracy.
When the indicator's value crosses above the horizontal line at 1, it signals that the price movement is strong enough, making the breakout more likely to be genuine.
The Normalized Volume's principles are particularly beneficial for traders employing breakout or pullback strategies, as they help steer clear of unnecessary losses.
To use this indicator, you'll need to incorporate the SmoothAlgorithms.mqh library classes, which should be copied into your terminal_data_folder/MQL5/Include. For a detailed explanation on utilizing these classes, check out the article "Averaging price series for intermediate calculations without using additional buffers".
Fig.1 The Normalized Volume indicator
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