Volume Divergence Indicator
MT4Also Available for MT5Volume Divergence indicator for mt4 – download free. Best divergence indicator for mt4. Best trend reversal mt4 indicator.
Description
The Volume Divergence indicator for MetaTrader is a custom trading tool that is well suited for identifying and trading volume divergence in the price of an asset.
What is volume divergence?
Volume divergence suggests an imminent reversal of the price as a result of an increase/decrease in volume. It occurs when the price moves and does not reflect in the volume. For instance, a bearish volume divergence occurs when the price creates lower highs with higher volume bearish. Similarly, a bullish volume divergence occurs when the price creates higher highs with lower volumes.
What is the best indicator to show divergence?
Different indicators like MACD, RSI, etc. are used to identify divergence of the price. However, the best indicator for divergence trading is the Volume Divergence indicator because the volume is an important factor in trading.
Furthermore, the Volume Divergence indicator is suited for trading styles like scalping, day/intraday, and swing trading. It is also recommended for novice, intermediate and expert forex traders.
How to Trade With Volume Divergence indicator
The above screenshot depicts how the indicator would look on your mt4 chart. It also illustrates how to identify volume divergence. Furthermore, the Volume Divergence indicator is recommended to be used in sync with price action/and or other technical indicators for optimal trade entries.
BUY and SELL Signals: For a BUY signal, first, identify a bullish volume divergence, and then open a BUY/LONG position in sync with price action (e.g. bullish engulfing, pin bar, etc.). The above principle is also applicable for a SELL signal.
Conclusion
The Volume Divergence indicator for MT4 is a powerful technical indicator for trading the divergence in the price of an asset. Finally, it is free to download.
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