On-balance volume (OBV) divergence indicator for MT5 download - Free - [TFLab] - MetaTrader 5 Resources

On June 22, 2025, in version 2, the indicator added alert/notification functionality

The Automatic Balanced Volume Divergence (OBV Divergence) Indicator Momentum Oscillator in MetaTrader 5, like other automatic divergence tools, checks for divergences on the price chart.

This tool makes it possible to draw a line in the Metatrader5 Oscillator window, display divergences and mark buy and sell positions (Buy-Sell) on the price chart.

Divergences This oscillator identifies signs of underlying market trends reversals that occur when price changes order volume are contradictory .

Indicator Table

The image below shows the NASDAQ Index chart with symbol [NAS100] on a 30 minute time frame.

On the left side of the image, at the end of a downtrend , the indicator detects Bullish Divergence and issues a buy signal on the chart. Likewise, on the right side of the image, Bearish Divergence detects an uptrend at the end, and a sell signal appears on the chart.

Overview

A reliable indicator of a market trend reversal is the presence of divergence. The Automatic Balance Volume Divergence (OBV Divergence) Like other divergence detection tools, the indicator is a technical analysis tool that identifies differences between price performance and the direction of the indicator.

Divergence in trading volume is a sign of an underlying market trend change and can identify the flow of buy and sell orders in the market.

Buy signal (buy position)

In the image below, the price chart of the US Dollar to Canadian Dollar pair (USDCAD) is shown on a 15-minute time frame.

The Divergence downtrend can be identified as the Bullish Divergence in the OBV indicator because volume is increasing while price is forming lower lows.

This condition indicates closing selling volume and the underlying trend is reversal upward, with the indicator showing a buy signal on the chart.

Sell ​​signal (sell position)

In the image below, the price chart of British Pound to US Dollar pair (GBPUSD) on the 4 hour time frame indicates that the uptrend is weakening, marking the end of the uptrend buying volume and the underlying trend reversal due to the presence of a Bearish Divergence in the OBV indicator.

When the volume in the indicator decreases and the price increases, this situation indicates the end of the trade. Buying volume and trend reversal downward , the indicator shows sell signal on the chart.

OBV Divergence Indicator Settings

• Volumes : For transaction volume calculation in foreign exchange, select transaction volume;
• Number of candles used for pivot calculation : The number of pivot calculations is set to 8;
• Maximum distance between two pivots : The maximum distance between two pivots is 30;
• Minimum distance between two pivots : The minimum distance between two pivots is 5;
• The number of disagreements with the pivot : the number of disagreements with each pivot is 1;
• OBV number of breakthrough lines : The number of RSI line changes is set to 2;
• Shift : Shift is set to 2;
• Sell_Divergence : Set the color of the sell signal to pink or any color of your choice;
• Buy_Divergence : Set the color of the buy signal to blue or any color of your choice;
• Width : The width of the divergence line can be set to 2.

Summary

The OBV Divergence Indicator is a handy technical analysis tool for identifying divergence points on a chart. This indicator detects the difference between price and volume on different time frames.

Divergence occurs when price and the OBV indicator move in opposite directions, providing a strong signal of a potential trend change.

This volatility indicator performs best in volatile markets, such as Forex and stocks, and is less effective in range-bound (sideways) markets with lower volatility.