volum up dw

Related: horizontal volume - another powerful indicator for MetaTrader 4 traders.

i attempted to divide the volume into two components.

the idea is that the price movement within a bar can be simplified as follows:

Also recommended: institutional kyle's lambda market impact engine: revolutionizing volume analysis - similar indicator with strong performance on MetaTrader 4.

as seen in the diagram, the price movement can be divided into three segments, and the volume can be proportionally distributed accordingly.

i found a similar concept by azzx on 27.06.2021 10:02.

however, my volume distribution follows the above algorithm only on m1, and these calculated volumes are then summed up on higher timeframes. the result is significantly different and more accurate! the reason is that, for instance, during a 1-hour bar, there is a significant volume battle, but the resulting volume and candle of the hourly bar conceal this information. it can only be deciphered by using a lower timeframe. and that's exactly what this indicator does!

indicator usage example:

at points a, b, and c, the price was rising, while the volume (volum_up_dw) was either at the same level or falling, leading to a further price decline.

in general, you need to look for divergence between price and indicator.
the following methodologies can be applied:


method 1. at the current price, observe the indicator reading. move backward along the indicator and find the nearest matching value. then, look at the corresponding price. if the new price is higher than the current price, it indicates a decline; if lower, it suggests an increase.

method 2. observe the indicator value at the current price. move backward along the price and find the same price. check the indicator value at this price. if the indicator value at the new price is higher than the current one, it indicates a decline; if lower, it suggests an increase.


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the external variable min_bar_vl is used in the following cases:

- if set to 0, a vertical line (start of the chart) will appear, allowing you to set the chart's starting point by moving the line.

- if min_bar_vl is assigned a value, there will be no vertical line, and the chart will always start from that bar.

to call the indicator from an advisor, you can use the following line:

icustom (symbol(), 0, "volum_up_dw_05", 100, 0, 0);

it is recommended to use this indicator on m1...h4 timeframes (higher timeframes may not be as reliable).

You may also like: quasi-volume bars indicator - excellent alternative for indicator users on MetaTrader 4.

#property copyright "robotfx"
#property link "https://robotfx.org"
#property  indicator_separate_window
#property  indicator_buffers 1
#property  indicator_color1  black
#property  indicator_width1  1
extern int min_bar_vl=10;
double   extbuffer0[]; 
double   extbuffer1[]; 
datetime time_max_bars_1;

.......

• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.