Summary of 📥 On Balance Volume Divergence (OBV) Indicator for MT4&5 - Free Download - [TFlab]

Summary of the Video on On Balance Volume (OBV) Divergence Indicator for MT4 & MT5

The video provides a comprehensive tutorial on the On Balance Volume (OBV) Divergence Indicator, available for free download on the Trading Finder website, compatible with MetaTrader 4 and MetaTrader 5 platforms. The indicator is designed to help traders identify changes in trading volume and detect divergences between price action and volume, which can signal potential buy or sell opportunities.

Main Financial Strategies and Market Analyses Presented

Volume and Price Divergence Analysis:
The OBV Divergence indicator identifies divergences between price movements and volume oscillations, which are key signals for potential market reversals or continuations.
Types of Divergences Explained:
- Classic Positive Divergence: Oscillator forms higher lows while price forms lower lows, signaling a buy opportunity.
- Classic Negative Divergence: Oscillator forms lower highs while price forms higher highs, signaling a sell opportunity.
- Hidden Divergences: These are less obvious divergences indicated by dots, showing potential continuation signals.
  - Hidden Positive Divergence: Oscillator forms lower lows while price forms higher lows.
  - Hidden Negative Divergence: Oscillator forms higher highs while price forms lower highs.
Trade Entry and Exit Signals:
Divergences generate buy or sell signals that traders can use to enter or exit trades based on volume-price relationship shifts.

Methodology / Step-by-Step Guide to Using the OBV Divergence Indicator

Download and Installation:
- Download the indicator file for MT4 or MT5 from the Trading Finder website.
- Open MetaTrader, select the indicator from the Navigator, drag it onto the chart.
- Ensure "Allow DLL Imports" is enabled in settings, then confirm.
Indicator Setup and Display:
- An oscillator window appears at the bottom of the chart showing volume divergence signals.
- Customize display settings: choose from light, dark, or custom chart templates.
Configure Calculation Settings:
- Choose the price type for calculations (default is close price, but open, high, low, etc., are available).
Toggle Divergence Types and Display Options:
- Enable or disable classic divergences, hidden divergences, and divergence lines on the oscillator or chart.
- Customize colors for bullish and bearish divergences.
Alert Settings:
- Enable or disable alerts for buy and sell signals.
- Choose to receive alerts via sound, messages, or email.
- Configure email settings in the platform’s tools/options if email alerts are enabled.
Additional Customization:
- Set how many candles backward the indicator should analyze (default 1,000).
- Upload custom sound files for alerts if desired.
Applying Changes:
- After adjusting settings (e.g., changing template or colors), click "Apply" to update the chart display.

Business Trends Highlighted

Increasing use of volume-based indicators to complement price action analysis.
Growing popularity of Divergence Trading Strategies as a method to predict market reversals.
Emphasis on customizable and user-friendly trading tools to fit different trader preferences and styles.

Presenters / Sources

The tutorial is presented by TFlab, associated with the Trading Finder website, which provides the indicator and instructional content.

This summary encapsulates the key points of the video, focusing on the OBV Divergence indicator’s functionality, usage instructions, and its role in trading volume-price divergence strategies.

Notable Quotes

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