Hey fellow traders! Today, let's dive into the Price Volume Divergence indicator, a handy tool you can use with MetaTrader 5. This indicator compares the sizes and volumes of the current and previous bars. When it detects a significant difference, it signals you with pointers, helping you make informed trading decisions.
This indicator comes with five adjustable settings that you can tailor to your trading style:
- Use Alerts: Turn on alerts to stay updated.
- Send Mail: Get email notifications straight to your inbox.
- Send Push Notifications: Receive instant alerts on your mobile device.
- Applied Volume: Choose the volume type that the indicator will use.
- Show Volume Bars: Visualize volume directly on your price chart.
Calculations:
- If the current candle's size is bigger than the last one but its volume is smaller, it's a sign of growing divergence. In this case, a green signal pointer will appear at the candle's high.
- If the current candle's size is smaller than the previous one, but its volume is higher, that's a falling divergence. Here, a red signal pointer will show up at the candle's low.
Keep in mind that these signal pointers don’t dictate the direction for opening a position; they merely indicate whether the divergence is growing or falling based on the sizes and volumes of the current and previous candles.
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