The Volume Zone Oscillator Metatrader 5 indicator is built on the “In The Volume Zone” article by David Steckler and Walid Khalil.
The market has some unwritten rules asides a few that states, all technical indicators can be grouped as either trending or oscillating (non-trending) in their build.
The Volume Zone Oscillator (VZO), takes into consideration both market features.
John J. Murphy, in his book Technical Analysis of The Financial Markets, stressed that deploying oscillators offers three benefits:
Overbought and oversold conditions caution traders of an overextended and exposed price state.
Divergence between price and oscillator reveals hidden strength or weakness within the market, which is not visible within the activity chart.
Intersection of the zero line can offer vital information about market trends.
The GBP/USD H1 chart below displays the Volume zone oscillator forex Metatrader 5 indicator in action
Basic Trading Signals
Buy Signal: Go long when the line of the Volume Zone Oscillator – Floating Levels Metatrader 5 forex indicator turns lime green and breaks above the 0.00 level.
Sell Signal: Go short when the line of the Volume Zone Oscillator – Floating Levels MT 5 forex indicator turns crimson and breaks below the 0.00 level.
Exit buy trade: Close all buy orders when the line of the Zone Oscillator – Floating Levels Metatrader 5 forex indicator dip below the zero level during a bullish trend.
Exit sell trade: Close all sell order when the Zone Oscillator – Floating Levels MT 5 forex indicator line breaks above the zero level during a bearish trend.
Tip: The Zone Oscillator – Floating Levels Metatrader 5 forex indicator uses floating levels to determine trend, as such swing traders and scalpers will find this tool very helpful as they get along.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Period, Floating levels look back period, Floating levels up levels %, Floating levels down level %), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator | trend
Copy and paste the Volume zone oscillator – fl.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)