When the market is close to a flat state, the majority of indicators generate a lot of false signals. Meanwhile, there is a quite easy way to filter, maybe, not everything, but a quite considerable part of the signals of this kind. As far as the appearance of strong trend movements is almost always accompanied by the volume increase, the usage of indicators may be useful for the determination of optimal points to enter the market.
The suggested indicator of the normalized volume builds the chart of tick volume values per average value of the period. Owing to this normalization of the current volume value, the possibility of easy and accurate criteria of the market entrance can be produced. So, if the chart line is above 1.0 value, it means that the current volume value is higher than the average for the period, therefore the indicator’s signals, that the trading is performed with, should be considered as the true ones.