About the Volume Divergence Makers Indicator
Volume Divergence Makers is a custom-built MetaTrader 4 indicator designed to analyze the relationship between price action and trading volume.
It focuses on spotting divergence scenarios where volume behavior does not confirm price movement.
These situations often signal weakening momentum or a potential shift in market direction.
The indicator continuously scans price data and highlights volume divergence by plotting a blue dot directly on the chart.
This visual signal allows traders to quickly identify areas where buyers or sellers may be losing strength.
Unlike standard volume tools, Volume Divergence Makers blends volume analysis with price behavior to deliver more actionable insights.
This indicator is best used as a confirmation tool.
When combined with price action analysis or other technical indicators, it helps traders filter low-quality setups and focus on trades with better probability.
It is suitable for forex pairs, commodities, and indices across multiple timeframes.
Free Download
Download the “Volume_Divergence_Markers.mq4” indicator for MT4
Key Features
- Detects volume and price divergence automatically.
- Plots blue dot signals directly on the MT4 chart.
- Helps identify potential reversals and momentum loss.
- Effective when combined with trend or price action strategies.
Indicator Chart
The chart below shows the Volume Divergence Makers indicator applied to a live MT4 chart.
Blue dots appear when volume divergence is detected between price swings.
These signals highlight potential buy or sell zones where price momentum may be weakening.
Guide to Trade with Volume Divergence Makers Indicator
Buy Rules
- Wait for a blue dot to appear after a bearish price move.
- Confirm divergence aligns with nearby support or consolidation.
- Enter a buy trade after bullish price confirmation.
Sell Rules
- Wait for a blue dot to appear after a bullish price move.
- Confirm divergence aligns with resistance or exhaustion zones.
- Enter a sell trade after bearish price confirmation.
Stop Loss
- Place a stop loss below the most recent swing low for buys.
- Place a stop loss above the most recent swing high for sells.
Take Profit
- Target the next key support or resistance level.
- Use a fixed risk-to-reward ratio such as 1:2 or higher.
Volume Divergence Makers + Four Time Frames ASCTrend Forex Day Trading Strategy for MT4
This strategy uses the Volume Divergence Makers Indicator (MT4) together with the Four Time Frames ASCTrend Indicator (MT4) to trade intraday on major pairs.
The Volume Divergence Makers draws a blue dot on the chart whenever it detects volume divergence, suggesting a potential reversal or significant move.
Meanwhile, the Four Time Frames ASCTrend gives trend-bias signals: a buy when all four trend bars are blue and a sell when all four are red (indicating a strong aligned trend).
By combining divergence detection with trend confirmation, you can capture higher-probability entries during the trading day.
This setup works well on the M15 and H1 charts for context, and entries are executed on the M5 or M15 chart, making it suitable for day trading (not full swing trades).
It’s best used on liquid pairs during active sessions (such as EUR/USD, GBP/USD, USD/JPY, AUD/USD) when volume and trend strength are meaningful.
Buy Entry Rules
- On a pair you are watching, confirm that the Four Time Frames ASCTrend shows all four bars blue (strong uptrend bias across multiple time frames).
- On the M5 (or optionally M15) chart, wait for a blue dot from the Volume Divergence Makers indicator (this signals volume divergence favourable to a reversal or trend move).
- Enter a long (buy) trade at the close of the candle where the blue dot appears.
- Place the stop-loss a few pips under the recent swing low (based on the M5 chart).
- For example, if volatility allows, set the stop-loss 8-12 pips below the dot entry on majors in active sessions.
- Set the take-profit at about 1.5 to 2 times the stop-loss size, or trail the trade if the price continues to show strength and the ASCTrend trend bars remain blue.
Sell Entry Rules
- Confirm that the Four Time Frames ASCTrend shows all four bars red (strong downtrend bias across time-frames).
- On the M5 (or optionally M15) chart, wait for a blue dot from the Volume Divergence Makers indicator (this signals volume divergence favourable to a reversal or trend move).
- Enter a short (sell) trade at the close of the candle following the blue dot when it aligns with the trend bias (bars red on ASCTrend) and price shows early reversal or momentum move downward.
- Place the stop-loss a few pips above the recent swing-high on M5 (example 8-12 pips above entry for active session majors).
- Set take-profit at 1.5 to 2 times stop-loss size, or trail the trade as long as the ASCTrend bars remain red and the price keeps moving down.
Advantages
- Combines divergence detection (Volume Divergence Makers) with trend confirmation (ASCTrend) to filter high-probability setups.
- Clear visual signals (blue dot + trend bars) make decision-making faster and less ambiguous.
- Suitable for day trading, where you want defined entries and exits rather than long-term holds.
- Works on any pair and any timeframe according to the indicator description, though best on active ones.
Drawbacks
- Divergence signals may appear and not follow through — you still need trend confirmation and good risk management.
- The strategy requires watching multiple time frames (to confirm ASCTrend bars and locate divergence dots), which means more screen work and focus.
- In very choppy or range-bound markets, even trend-aligned setups may fail or offer small moves only.
- Stop losses may need adjusting if volatility spikes (e.g., around news), so strict fixed pip stops may not always work well.
Example Case Study 1 – EUR/USD (M15 / M5)
During the London session on EUR/USD, the ASCTrend on M15 and H1 shows all four bars blue, indicating a strong uptrend.
On the M5 chart, a blue dot appears from the Volume Divergence Makers near 1.1020 after a brief pullback.
A buy trade is entered at 1.1022, stop‐loss is placed at 1.1008 (14 pips), and take‐profit at 1.1048 (26 pips ≈1.85×).
The price rallies and reaches the target within the next hour.
The divergence dot signalled the pullback completion, and the multi-time-frame trend alignment gave confidence.
Example Case Study 2 – GBP/CHF (M15 / M5)
On the GBP/CHF pair during the New York session, the ASCTrend shows all four bars red – strong downtrend bias.
On the M5 chart, a blue dot from the Volume Divergence Makers appears near 1.2345 after a small corrective uptick.
A sell entry is taken at 1.2343, stop-loss at 1.2360 (17 pips), and take-profit at 1.2310 (33 pips ≈1.94×).
The move down continues, and the target is hit, illustrating how divergence with the trend filter works even in corrective phases.
Strategy Tips
- Always confirm the trend bias with the ASCTrend before acting on a divergence dot — if trend bars are mixed colors, skip waiting for strong alignment.
- Prefer trading during high-volume sessions (London open, New York open) for better momentum and clearer divergence signals.
- Use proper money and risk management: aim to never risk more than 1-2% of your account per trade, even if setups look strong.
- Consider adding additional filters, such as support/resistance zones or price structure (higher highs/lower lows), to further enhance reliability.
- Test the strategy on a demo account first to understand how divergence markers and trend bars behave on your chosen pairs before using live funds.
Download Now
Download the “Volume_Divergence_Markers.mq4” indicator for Metatrader 4
FAQ
What type of divergence does Volume Divergence Makers detect?
The indicator focuses on volume divergence relative to price movement.
It highlights situations where price continues moving but volume fails to support that move.
Can this indicator be used alone?
It can be used as a standalone signal tool, but results improve when paired with price action or trend-based indicators.
Summary
Volume Divergence Makers offers traders a practical way to monitor volume behavior alongside price action.
Its blue dot signals help identify moments where market momentum may be shifting.
This makes it a valuable addition to reversal and continuation trading strategies.
The indicator is easy to use, works across markets, and integrates smoothly with existing MT4 setups.
With further customization options or alert features, it could become even more powerful.
For traders who value volume-based confirmation, this indicator delivers solid analytical support.
