This indicator places a marker on a chart based on a divergence between trade volumes and bar sizes, i.e. if bar size has been decreasing/increasing for N continuous bars and volume has been doing the opposite, a marker will be placed.
Usually, the markers are placed near the peaks before a reverse 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 input parameters. VDM does not provide complete information about potential trades if used without other indicators.
Higher input variables values mean less frequent signals. I am currently experimenting on how the false signals can be filtered. Also, a complementary indicator, which shows the direction in which the positions should be opened, is currently in development. Feel free to post your suggestions about improving this indicator.
UPDATE 27.05.2015: I have added the lines between markers, as requested. By default, they will be the same color as the markers.
Binary Options Indicators – Download Instructions
Volume Divergence Markers (VDM) Binary Options Indicator is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data.
Volume Divergence Markers (VDM) Binary Options Indicator provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
How to install Volume Divergence Markers (VDM) Binary Options Indicator.mq4?
- Download Volume Divergence Markers (VDM) Binary Options Indicator.mq4
- Copy Volume Divergence Markers (VDM) Binary Options Indicator.mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader Client
- Right click on Volume Divergence Markers (VDM) Binary Options Indicator.mq4
- Attach to a chart
- Modify settings or press ok
- Indicator Volume Divergence Markers (VDM) Binary Options Indicator.mq4 is available on your Chart
How to remove Volume Divergence Markers (VDM) Binary Options Indicator.mq4 from your Metatrader Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
Click here below to download the Binary Options Indicators:
volume-divergence-markers-vdm
