How the RVOL Indicator Informs Breakout Strategies & Helps Avoid False Breakouts

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Darwinex

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Published on June 28, 2021 8:05:12 AM ● Video Link: https://www.youtube.com/watch?v=p00fu987jWo

Category:

Let's Play

Duration: 11:02

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When trading using a systematic or algorithmic approach, it is often challenging to know if a breakout will succeed or fail. The RVOL Relative Volume indicator can provide valuable insights to help you turn the probabilities of making good decisions more in your favor, and help identify false breakouts. This is because RVOL can be used as an indicator of trader commitment to each price move and thus provide valuable clues.

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MQL5 Source code for the RVOL Indicator is available at:
https://github.com/darwinex/advanced-mql-programming/blob/master/RVOL-Indicator/RVOL.mq5

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This is Episode 68 in the Darwinex 'Algo Trading for a Living' Playlist, and Episode 8 of the new 'Volume Data' mini-series.

Video Contents:
00:00 Introduction
00:40 Assessing Relative Volume
01:26 Using RVOL - an example using EURUSD
01:55 Pullback or Reversal?
05:38 Clues to a Trading Ranges Developing using Volume
06:55 Successful Breakout or False Breakout?
09:52 Idealised example of using RVOL
10:27 Next Episode: Volume Spikes, Trend Exhaustion, Below Average Volume
10:44 Summary and Conclusions

Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.

Risk disclosure:
https://www.darwinex.com/legal/risk-disclaimer