The Slow Volume Strength Index Metatrader 5 forex indicator is an oscillator that defines volume momentum.
The indicator was first introduced in the “Stock & Commodities” April 2015 magazine edition.
The indicator consists of a crimson line (by default) that oscillates above and below the 50.00 level.
When this line dips below the 20 level, price is said to be oversold, which means it is possibly the right time to go long on the desired forex pair.
Furthermore, if the crimson line surges above the 80 level, the market is said to be in an overbought condition, which implies it is perhaps the right time to go short.
Use this indicator together with a trend following forex indicator and trade signals from the Slow Volume Strength Index indicator in the overall direction of the trend.
Trend upward? Trade oversold signals.
Trend downward? Trade overbought signals.
Download the “SVSI.ex5” MT5 indicator
The EUR/JPY H4 chart below displays the Slow Volume Strength Index Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long if following the crimson line of the Slow Volume Strength Index Metatrader 5 forex indicator rises from the oversold region (below the 20 level) and breaks above the 50.00 signal line.
Sell Signal: Go short if following the crimson line of the Slow Volume Strength Index Metatrader 5 forex indicator drops from the overbought region (above the 80 level) and breaks below the 50.00 signal line.
Exit buy trade: Close all buy orders if while a bullish trend is running, the crimson line of the Slow Volume Strength Index indicator breaks below the 80.00 level (overbought zone).
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the crimson line of the Slow Volume Strength Index indicator breaks above the 20.00 level (oversold area).
Tips: Asides the overbought/oversold levels, signals are determined on the Slow Volume Strength Index indicator using the middle line cross and divergences based on the oscillator axial line.
Download the “SVSI.ex5” Metatrader 5 indicator
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (EMA period, Smoothing, Overbought, Middle, Oversold), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator | overbought/oversold | divergence
Copy and paste the SVSI.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)