TVI Histogram Indicator
Platform: MT4 Type: Momentum Last update: October 5, 2024The TVI Histogram Indicator for MT4 is a variation of quite popular TVI (Tick Volume Indicator) which was originally introduced by William Blau. The regular one display signal in the form of a simple line, thus this version is designed for traders who prefer histogram style more.
This gauge was developed with a goal to minimize the lagging issue. In comparison, for example it is much faster than a moving average indicator. Please note however, the readings of the current bar are not final before the candle closes.
TVI histogram usage explained
The zero level is a point of reference for the readings being either positive or negative. Bullish signals take place only in a positive setup and similarly bearish signals occurs only during negative values.
The best potential entries happens on histogram bar’s color switch on low level of the scale in the direction of the original trend.
This is very friendly to use in conjuction with other technical analysis indicators. In the chart below, we use 100-period Exponential Moving Average and there is clear uptrend, so we take only long opportunities. The most profitable trades were the ones took near the 0 level or even below it.