The Cumulative Volume Indicator (CVI) is a powerful MT5 tool widely used by forex traders to analyze market volume and trend strength. By measuring the total volume of a security over a specified period, this indicator helps traders identify market momentum and generate buy and sell signals.
CVI is particularly useful for confirming trading signals from other indicators and spotting the strength of ongoing trends. Higher cumulative volume readings typically indicate strong market participation, while lower values suggest weaker momentum.
The Cumulative Volume Indicator calculates the total volume of all trading activity within a set period and plots the results on a chart. The formula involves summing the volume of each period cumulatively and then dividing by the number of periods or trades.
Rising CVI values indicate increasing market activity and potential continuation of a trend.
Falling or flat CVI values may signal weakening momentum and possible trend reversal.
Traders can use CVI on any timeframe, but it is especially effective on intraday charts for short-term trading.
BUY Signal:
The CVI rises sharply over consecutive periods, showing strong buying interest.
Volume continues to increase after an initial breakout, confirming the strength of an upward trend.
Entry can be confirmed with supporting indicators such as moving averages or RSI.
SELL Signal:
The CVI starts declining after reaching a peak, signaling waning buying interest or rising selling pressure.
Flat or falling cumulative volume may indicate a potential trend reversal.
Traders may enter a SELL position after confirming with other technical tools.
It is crucial to use CVI in combination with other technical indicators to avoid false signals and improve trade accuracy.
Trend Confirmation: Helps validate the strength of market trends.
Market Momentum Insights: Reveals when buying or selling pressure is increasing.
Versatile: Can be applied to any asset class and timeframe.
User-Friendly: Clear graphical display makes it easy to interpret volume trends.
Free to Download: Accessible for all forex traders from IndicatorForest.com.
The Cumulative Volume Indicator (CVI) is an essential MT5 tool for forex traders seeking to measure market momentum and generate accurate buy and sell signals. By analyzing cumulative trading volume, traders can confirm trends, identify potential reversals, and make informed trading decisions.
Enhance your forex strategy by downloading the Cumulative Volume Indicator for MT5 for free from IndicatorForest.com and combine it with other technical indicators for maximum efficiency.
Published:
Nov 20, 2025 01:30 AM
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