Volume Divergence Markers Indicator for MT4 displays the convergence or divergence between the volume and the price in the market by putting blue diamond-shaped dots on the charts.
Traders use the concept of convergence and divergence with a lot of indicators and have been able to devise many profitable trading strategies. This one is also perfect.
Working of Volume Divergence Markers Indicator MT4:
When we apply the indicator to the charts, the indicator will draw blue colored dots on the charts.
If the dots and price are moving in the same direction, then we can assume that the trend will continue to move in the direction it is moving.
However, if the volume dots and the price moves in the opposite direction, this is a divergence, indicating that the trend is about to change.
Settings of the indicator
Inside the volume divergence indicator settings, you can modify whether you want the real-time bar to be considered. Also, you can change the settings for convergence and divergence along with the color of the dots.
Trading strategy for Volume Divergence Markers Indicator
As we discussed in the first session when the blue dots and the price are moving in the same direction, there is convergence, and the market will continue to move in the current trend. So the traders buy, sell or hold their position according to their strategy. And when there is a market divergence, the trend will change.
It would help if you remembered while using this indicator that it is not suitable for trading. However, you can use the Volume divergence markers indicator and other indicators to carve out a profitable trading strategy.
The Volume convergence indicator is a convenient tool for traders. They can use this indicator to get an idea about the direction of trends in the market and optimize the trading strategy.