The Volume Moving Average Indicator (Volume MA) is a technical analysis tool that focuses on trading volume behavior in financial markets. It helps identify entry and exit zones for trades. On the MetaTrader 4 platform, this indicator consists of two main components:

• Volume Histogram: A graphical representation of trade volume shown as bars, where the height corresponds to the volume registered for each candle;
• Volume Moving Average: A yellow-colored moving average line calculated based on volume.

Volume MA Specifications Table 

The general specifications of the Volume MA indicator are presented in the following table:

Indicator Overview

The Volume Moving Average Indicator compares the current trading volume with the volume moving average over a specified period (e.g., the last 14 candles), helping identify unusual increases or decreases in market volume.

A current volume above the average indicates increased market activity and the likelihood of a significant price movement.

Conversely, if the volume remains below average, it may suggest weakening bullish momentum and increased selling pressure.

Uptrend Conditions

In the 5-minute chart of the GBP/JPY currency pair, a bullish candle forms in a support zone while the trade volume crosses above the volume moving average (MA).

This convergence may signal buying interest in the market. If followed by successive bars with above-average volume, it could represent a buying opportunity.

Downtrend Conditions

The chart below displays the Dow Jones Industrial Average (DJI) over a 30-minute timeframe.

If a bearish candle forms in a resistance zone while volume rises above the volume moving average (MA), this suggests increasing selling pressure. Such conditions may present a selling opportunity.

Volume MA Indicator Settings

The settings panel of the Volume MA indicator is shown below:

• period used for calculating the moving average: Period for calculating the moving average
• Shift applied to the moving average: Value of the applied shift to the moving average
• Method of moving average calculation: The method used to compute the moving average

Conclusion

The Volume Moving Average Indicator (Volume MA) is a practical tool for analyzing volume behavior in financial markets. By combining volume data with a moving average, traders can identify the strength of price movements and critical market points.