The Hidden Gap Volume Indicator distinguishes positive and negative trading volumes in live markets. It assists forex/stock traders in picking accurate buy-sell signals through MT4 platforms. In online trading, the volume indicator is the key to identifying the shifts in market momentums. It is a remarkable technical skill that helps you plan trade entries and exits based on valid market trends.

The Hidden Gap Volume Indicator has a distinctive ability to show specific changes in market volumes. It allows you to use the real-time supply/demand data to examine current price actions and potential trading opportunities. In this guide, you’ll learn how to identify trend-following buy-sell opportunities in forex and stocks using the Hidden Gap Volume Indicator in your MetaTrader 4 platform.

How to trade like a pro by using the Hidden Gap Volume Indicator in MT4

The Hidden Gap Volume Indicator plots volume bars in four colors. The blue bar indicates the current trading volume exceeds the volume of the last candle. The red bar signals a significant drop in market volume, indicating less trading activity. You’ll find the volume bars appear in gray when the current volume exceeds the last 20 intervals. Oppositely, the red bars indicate the volume has dropped less than the last 20 candle periods.

The dark green curvilinear line across the middle of the indicator window shows the 20-period moving average level. There is also a dotted curve above the MA level representing a higher moving average level based on a 30-period standard deviation. When volume bars exceed the primary moving average, we consider the market momentum supporting the current price action. For instance, the price breaks above key resistance, and the indicator plots a blue volume bar exceeding the MA. It indicates the breakout is valid and a possible uptrend ahead.

In the same way, when the price chart forms a bearish reversal pattern, ensure a positive volume supports the movement before confirming a sell order. If you find the price is falling with a negative or red volume bar, consider the current bearish move may not last for long. The grey volume bars indicate the price is likely to continue moving within the current trend direction. On the other hand, the red bars signal the market is under consolidation, indicating a no trading condition.

Conclusion

The Hidden Gap Volume Indicator is a super volume analysis tool for MT4. It shows real-time changes in market supplies and demands for determining the correct price momentum. Since financial markets produce a mix of solid and weak trading opportunities, it is essential to filter highly probable trade signals. Using a volume indicator to assess the quality of a possible trade setup helps you make the best buy-sell decisions in forex and stock markets.