Volume Rate of Change indicator - Strong Indicator for Trend Strength

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Kishan Bhatt
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Hello, 

One tried and tested method for checking on the validity of a trend is the checking of volume. A good explanation in its use in a system can be found on the following link from a professional forex trader with a very popular channel on you tube. I feel that this indicator can be used to filter out false breakouts, reversals etc and allows a way to minimise losses. The idea would be

If the Volume rate of change > some value --> opens trade (as the oscillators to, collectively or otherwise)

If the Volume rate of change < some value --> closes trade (as the oscillators to, collectively or otherwise)

vroc.mq5

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Kishan Bhatt

Link to more information https://www.mql5.com/en/code/53

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Andrey Khatimlianskyi
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Which direction should EA open trade on this signal?

or should it work like Volatility filter (allow both buys and sells)?

It can be implemented, let's vote.

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Kishan Bhatt

Hi, if it works like the volatility filter we can test it in both directions?

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Andrey Khatimlianskyi
Quote from Kishan Bhatt

Hi, if it works like the volatility filter we can test it in both directions?

In such way it will filter both buys and sells.

So, if Volume rate of change > some value, both buy and sell can be opened (by another signal).

Is it ok?

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Kishan Bhatt

Hi Andrey, 

That's exactly it. It can be used for open/close just like the other filters and signals. I think it can be good to filter out other false signals that other indicators can be prone to generating. It can be a bit like a good "confirmation indicator" for assessing trend strength.