Volume Divergence Marker (VDM) - MetaTrader 4 Script | Forex Indicator Download - MT4/MT5 Resources

The indicator places a mark on the chart based on the difference between volume and bar size, i.e. if the bar size has been decreasing/increasing for N consecutive bars, while the opposite is true for volume, a mark will be placed.

Typically, the mark is located near the peak before a reversal or in the middle of a technical correction during a trend. This indicator can be used to identify potential entry or exit points, depending on the configuration of the input parameters. If used without other indicators, VDM does not provide complete information about a potential transaction.

Higher values ​​of the input variable mean lower frequency of the signal. I'm currently experimenting with how to filter error signals. In addition, a complementary indicator is currently being developed that shows the direction in which positions should be opened. Please feel free to post your suggestions for improving this indicator.

Update May 27, 2015: I've added lines between the markers as requested. By default, they are the same color as the markers.

Input variables:

It goes like this:

This is to demonstrate the profit potential:

suggestion:

Attachment download

📎 volume_divergence_markers.mq4 (4.35 KB)

📎 vdm_with_lines.mq4 (5.68 KB)

Source: MQL5 #12359