Smart volume diverges! (Smart Volume Divergence!) | Forex indicator download- MT4/MT5 resources
Hello everyone!
I've brought some awesome stuff to share!
Just a little bit of my story. I have been working in the markets for about 8 years and most of my operations are based on trend lines, Fibonacci and 5 minute and 15 minute TF candlestick patterns. During that time, like I believe most people, I have been trying to develop systems to optimize my trading. So, after a lot of analysis of the fundamentals behind price movements, I came up with a very logical, mechanical and profitable system, but unfortunately it was also very limited, because in order to increase the success rate, I ended up sacrificing the number of opportunities I got in each criterion, at least in the Forex market, because in the stock market, the system worked much better. You'll understand why!
Well, with that in mind, I'm going to share this system here and see if any kind soul can make an EA to help us spot this opportunity. Because with a good EA, we can consider multiple parameters and multiple time frames and ensure that we get plenty of opportunities during the week. It would be even better if you use Renko charts to look for signals. The system is very simple and uses traditional indicators, so I imagine it would be easy to code, but I couldn't code it myself. The idea behind the system is this:
We've all heard that trends are our friends and the best way to move the market in our favor. We also know that it is often difficult to determine whether the price will simply retrace or completely reverse. Therefore, to help us determine if we are facing a pullback or reversal, we will use the volume indicator to look for divergence from price and thus determine the strength of the opposite move. This indicator is OBV.
I know, I know. Forex trading volumes are not real, but the system still works on tick volume charts. I used this system for the Brazilian Stock Exchange's index and future dollar markets and it worked well since the volume data was real. The system works better on Renko charts, but we have to be very quick to catch some moves. Then EA will be a big help in catching them.
So it would be great if someone could write an EA for MT5, because then we can use the system in an environment where we have real data on trading volumes, so the system will have greater confidence. But as I said before, this system also works in Forex volumes and we can get Forex Pars in MT5 as well.
To determine the differences, we will assemble the template as follows:
In the main screen we will add Heiken Ashi, 3 EMA, 21 EMA and 50 EMA.
In the OBV indicator we will place these same averages, but based on the indicator itself rather than the closing price of the candle. This is the core of the system. We use indicator data to plot EMA. For these, simply drag the Moving Average indicator and in the "Apply to" section, use "First indicator data".
I like to make the OBV line invisible to make it easier to identify the differences. Because we will be using 3 EMAs in relation to the other two slow EMAs.
Get ready!
set up:
The entry point is at the high (buy)/low (sell) breakout of the HeikenAshi candle that triggered the signal.
The condition for getting a valid trigger candle is when the candle closes in the main window and the 21 EMA is above the 50 EMA (buy) or below the 50 EMA (sell) in both the main window and the indicator window.
Once these conditions are met, we wait for the retracement to appear at the 3 EMA in the main window and to cross the 21 or 21 + 50 EMA. Then we see if the same happens in the OBV window. If not, then we can enter the transaction.
So we will have 2 signals. One is when the 3 EMA crosses only the 21 EMA in the main window and not in the OBV, the other is when the 3 EMA crosses both the 21 and the 50 EMA, we do not get the same result in the OBV.
Stop loss is placed a few pips after the last top or bottom of the last 5 candles. At least 1:1 with the target.
With this setup we can expect good signals.
I will post some examples of Forex and Stock signals, as well as Candlestick and Renko charts, so that you can get a clear idea and understand the power of this setup.
I really hope someone can make an EA in MT5 for trading. From there, we can use Renko charts to spot some great trades in the stock and futures markets.
Note: When using bricks, I still use HeikenAshi to get trigger candles.
I've brought some awesome stuff to share!
Just a little bit of my story. I have been working in the markets for about 8 years and most of my operations are based on trend lines, Fibonacci and 5 minute and 15 minute TF candlestick patterns. During that time, like I believe most people, I have been trying to develop systems to optimize my trading. So, after a lot of analysis of the fundamentals behind price movements, I came up with a very logical, mechanical and profitable system, but unfortunately it was also very limited, because in order to increase the success rate, I ended up sacrificing the number of opportunities I got in each criterion, at least in the Forex market, because in the stock market, the system worked much better. You'll understand why!
Well, with that in mind, I'm going to share this system here and see if any kind soul can make an EA to help us spot this opportunity. Because with a good EA, we can consider multiple parameters and multiple time frames and ensure that we get plenty of opportunities during the week. It would be even better if you use Renko charts to look for signals. The system is very simple and uses traditional indicators, so I imagine it would be easy to code, but I couldn't code it myself. The idea behind the system is this:
We've all heard that trends are our friends and the best way to move the market in our favor. We also know that it is often difficult to determine whether the price will simply retrace or completely reverse. Therefore, to help us determine if we are facing a pullback or reversal, we will use the volume indicator to look for divergence from price and thus determine the strength of the opposite move. This indicator is OBV.
I know, I know. Forex trading volumes are not real, but the system still works on tick volume charts. I used this system for the Brazilian Stock Exchange's index and future dollar markets and it worked well since the volume data was real. The system works better on Renko charts, but we have to be very quick to catch some moves. Then EA will be a big help in catching them.
So it would be great if someone could write an EA for MT5, because then we can use the system in an environment where we have real data on trading volumes, so the system will have greater confidence. But as I said before, this system also works in Forex volumes and we can get Forex Pars in MT5 as well.
To determine the differences, we will assemble the template as follows:
In the main screen we will add Heiken Ashi, 3 EMA, 21 EMA and 50 EMA.
In the OBV indicator we will place these same averages, but based on the indicator itself rather than the closing price of the candle. This is the core of the system. We use indicator data to plot EMA. For these, simply drag the Moving Average indicator and in the "Apply to" section, use "First indicator data".
I like to make the OBV line invisible to make it easier to identify the differences. Because we will be using 3 EMAs in relation to the other two slow EMAs.
Get ready!
set up:
The entry point is at the high (buy)/low (sell) breakout of the HeikenAshi candle that triggered the signal.
The condition for getting a valid trigger candle is when the candle closes in the main window and the 21 EMA is above the 50 EMA (buy) or below the 50 EMA (sell) in both the main window and the indicator window.
Once these conditions are met, we wait for the retracement to appear at the 3 EMA in the main window and to cross the 21 or 21 + 50 EMA. Then we see if the same happens in the OBV window. If not, then we can enter the transaction.
So we will have 2 signals. One is when the 3 EMA crosses only the 21 EMA in the main window and not in the OBV, the other is when the 3 EMA crosses both the 21 and the 50 EMA, we do not get the same result in the OBV.
Stop loss is placed a few pips after the last top or bottom of the last 5 candles. At least 1:1 with the target.
With this setup we can expect good signals.
I will post some examples of Forex and Stock signals, as well as Candlestick and Renko charts, so that you can get a clear idea and understand the power of this setup.
I really hope someone can make an EA in MT5 for trading. From there, we can use Renko charts to spot some great trades in the stock and futures markets.
Note: When using bricks, I still use HeikenAshi to get trigger candles.
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