Using a Moving Average of Tick Volume with Candle Colors

Summary

This indicator plots a moving average against tick volume rather than price. It colors the volume bars to match the corresponding price candles, so the display combines relative activity with the direction of each bar. The document describes an MQL4 conversion of an earlier indicator and gives a basic interpretation of volume moving above or below its average.

A rise above the average may indicate greater market participation and can accompany a stronger trend or more volatile movement. Readings below the average may point to quieter trading or consolidation. These are possible interpretations, not confirmed signals: the document provides no settings, asset-specific guidance, backtest, or performance evidence. Tick volume measures price changes or activity reported by a platform and may not represent centralized traded volume, so its meaning can vary across markets and data feeds. The indicator is best treated as context for price analysis rather than a standalone entry or exit rule.

Key ideas

• The indicator compares tick volume with its moving average rather than comparing price with an average.
• Volume bars inherit the colors of the corresponding price candles.
• Tick volume above its average may suggest increased activity or volatility.
• Below-average tick volume may accompany quieter or consolidating conditions.
• The document gives no tested trading rules or evidence of predictive performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.