Volume Divergence Markers (VDM)
Info
The Volume Divergence Markers (VDM) is a Indicator for MetaTrader 4 that this indicator places markers on a chart based on the divergence between trade volumes and bar sizes. If bar sizes have been consistently decreasing or increasing for a set number of bars while volumes exhibit the opposite behavior, a marker will be placed.
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 4 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL4/Indicators folder via File ? Open Data Folder in MetaTrader 4.
How to Install and Use Volume Divergence Markers (VDM)
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
This indicator places markers on a chart based on the divergence between trade volumes and bar sizes.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 4.
Compatible Platform & Setup
This Indicator works on MetaTrader 4. Place the file in the MQL4/Indicators folder and restart the terminal.
Description & Settings
Related: Divergence Indicator Panel - another powerful indicator for MetaTrader 4 traders.
This indicator places markers on a chart based on the divergence between trade volumes and bar sizes. If bar sizes have been consistently decreasing or increasing for a set number of bars while volumes exhibit the opposite behavior, a marker will be placed.Also recommended: Multi-Indicator Divergence Detector for MetaTrader 4 - similar indicator with strong performance on MetaTrader 4.
Markers are typically positioned near peaks preceding a reversal or within technical corrections during a trend. They can help identify potential entry or exit points, but should be used alongside other indicators for comprehensive trade analysis.
Higher input variable values result in less frequent signals. Ongoing experimentation aims to refine the indicator by reducing false signals and developing a complementary indicator to indicate position direction.
Update: Lines between markers have been added, customizable in color.
Input Variables:
- Include/exclude zero bar.
- Convergence/divergence switch: Convergence marks when volume and bar sizes move in the same direction; divergence marks the opposite.
- Volume increase/decrease threshold in bars.
- Bar size increase/decrease threshold in bars.
Visual examples are provided to illustrate the indicator's appearance and potential profits.
Recommendations:
The indicator aims to maximize profits by identifying optimal entry/exit points. Input variable values between 1-3 bars are suggested for best results, as values above 4 are rarely applicable to market conditions.
The indicator performs well during flat price movements.
Important: Do not rely solely on this indicator for trade decisions, as it doesn't indicate price movement direction.
You may also like: horizontal volume - excellent alternative for indicator users on MetaTrader 4.
Source Code
#property copyright "robotfx"
#property link "https://robotfx.org"
#property version "1.00"
#property strict
#property indicator_chart_window
#property indicator_buffers 1
enum mode
{
convergence = 0,
divergence = 1,.......
⚠ Limitations & Risk Warning
- 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.