The Force Volume Divergence MT4 arrow indicator uses three main Forex approaches to search for entry signals: market strength, volume and divergence. These are the three main components that professional traders always use in trading systems.
The principles Force Volume Divergence MT4 Indicator:
- Market strength
This is a very important aspect of technical analysis, which helps to recognize the emergence of a new trend. If the new trend has a large strength index, then in many cases it allows the trader to take good profits. When a new trend shows a low strength index, such trend is always unstable and opening positions can lead to losses. Thus, it is very important to be able to determine the strength of a trend before opening a trade.
- Trading volume
Trading volume helps determine the strength and sustainability of a market trend. An uptrend is considered strong and stable if volume increases and the price moves up. When price starts to decline and volume decreases, it always means that the uptrend is in its final phase. The price may still rise a little, but as soon as the bear traders activate, the price starts to decline. And this can also be predicted using volume.
As you know, many professional traders often use various divergence indicators to decide whether to open a position or not. Divergence is an early sign of how the market might behave in the near future. Before the market price starts to reverse, it usually reaches the last peak, and divergence shows us that the price has no strength to continue moving in the same direction.
The Force Volume Divergence MT4 indicator is a combination of these basic components and it shows us the best price levels to enter the market. Sell signals are presented in the form of arrows that do not repaint or lag behind.
The authors suggest that the Force Volume Divergence indicator will perform best in scalping and intraday trading, since the most accurate signals will be on timeframes from M5 to H1. The indicator can be used in trading in the foreign exchange and stock markets.
Features of Force Volume Divergence MT4 indicator
- Platform: Metatrader 4
- Ability to change settings: Yes
- Timeframe: any from 1 Minute to Daily. M5 to H1 is recommended
- Currency pairs: any
In Force-Volume-Divergence.zip file you will find:
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