What is the OBV Indicator for MT4?
The OBV indicator is a technical analysis tool that uses moving averages to predict the direction of prices. The OVI is used to identify oversold and overbought conditions, which can help you make better trading decisions.
Download the Free OBV Indicator
How to use the OBV Indicator for MT4?
To use the OBI, open your MT4 platform and click on “Indicators.” then select “Oscillators” from the dropdown menu and scroll down to find “OBV (On Balance Volume).” Select it, and set the period for the Moving Averages (1 day, three days, one week…) according to your needs. Finally, enter your desired market parameters in the fields below and hit “Update.” When you’re done reviewing your results, hit “Visualize” to see how well your indicators performed.
OBV Indicator MT4 trading settings
Forex OBV Indicator is a technical analysis indicator that uses the relative strength index (RSI) as its central moving average. The RSI was developed by J. Welles Wilder and has been identified as being among the most reliable indicators of market trends when used with other technical indicators.
You can use three settings for Forex OBV Indicator on the MT4 trading platform: Fibonacci Retracement, Hammer Price Level, and WEMA Trend Weighting.
Here’s a brief explanation of each:
–Fibonacci Retracement setting determines where the RSI will move after it crosses over from below the lower boundary of the Fibonacci retracement zone to above. This zone usually contains 62%.
-Hammer Price Level sets how often the Hammer price level should be hit for RSI to enter into hammer mode; this occurs when RSI moves above 50% or drops below 25%. If not triggered within eight times per day, then the trigger will occur at 24%.
-WEMA Trend Weighting assigns more weight to recent trends to enhance their effect on determining whether or not an asset is in a bull or bear market condition.
OBV Indicator Advantages
There are many advantages to using a forex OBV indicator. For one, it can help you make better trading decisions by identifying areas where the price might be headed next. It can also help you avoid getting caught up in what’s happening right now – if you notice that the trend isn’t going your way, breaking out of it may be easier with an indicator like this on your side. And lastly, if you’re familiar with how different moving averages work (or any other types of hands), using them as part of your ForexOBV strategy will give you even more confidence when making trades.
OBV Indicator Disadvantages
Forex OBV indicator can be a potent tool for technical traders, but it has its disadvantages. Here are four of the most common ones:
1) Forex OBV indicators can be quite sensitive to price changes and may not provide accurate signals in volatile markets.
2) They often lag behind actual market movements, so they may not accurately reflect current trend conditions.
3) Most forex OBV indicators are based on Moving Averages (MA), which help identify support and resistance levels. Still, they create alerts at those levels even if the underlying security is not moving significantly. This can cause unnecessary pressure on your trading account and lead to unsuccessful trades.
4) Finally, because these indicators typically use historical data as input, they may become unreliable if critical aspects of that history change dramatically or if there’s an abrupt shift in market sentiment.
Indicator installation on MT4
To install an On Balance Volume (OBV) indicator on the MetaTrader 4 (MT4) platform, you can follow these steps:
- Download the indicator file from a reputable source and save it on your computer.
- Open the MT4 platform and click on the “File” menu at the top of the screen.
- Select “Open Data Folder” from the dropdown menu. This will open the folder where the platform’s files are stored.
- Navigate to the “MQL4” folder and then the “Indicators” folder.
- Copy the indicator file you downloaded earlier and paste it into the “Indicators” folder.
- Close the MT4 platform and then reopen it.
- Go to the “Navigator” window, which is located at the bottom of the screen.
- Click on the “Custom Indicators” folder, and see the indicator you just installed listed there.
- Drag and drop the indicator onto a chart to apply it.
- Configure the indicator’s settings as desired, such as the period of the OBV, and start using it to confirm trends and detect divergences in the market.
It is important to note that it is always good to check the authenticity of the source you are downloading the indicator from and also make sure you double-check the compatibility of the hand with the version of MT4 that you are using. Also, it is essential to note that OBV alone is not a perfect indicator; it’s best to use it in conjunction with other indicators and analysis to confirm the direction of a trend.
OBV Indicator mt4 free download
Conclusion
This article has provided an overview of the On Balance Volume (OBV) indicator and how to install it on the MetaTrader 4 platform. OBV is a popular trend-detection tool that can be used to confirm trends or detect divergence in the market.