Introduction to the OBV Divergence Indicator
The OBV Divergence indicator is, as the name suggests, a forex trading tool that shows On Balance Volume divergences.
When you load up the indicator into charts you should still adjust its settings. There are two options you will need to turn on.
Set both the drawIndicatorsTrendlines and drawPriceTrendLines to true.
Except that you will need to manually set the indicator’s timeframe to fit the current chart timeframe (it doesn’t change automatically).
The indicator is displayed in a sub window placed just below the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
Don’t miss: Knoxville Divergence Indicator
How to set up the OBV Divergence indicator in MT4?
Copy and paste the OBV_DivergenceMTF.ex4 or OBV_DivergenceMTF.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, that goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The OBV Divergence indicator is well worth adding to your trading collection but remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, it will provide false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.
You may be also interested in this MT4 RSI Divergence indicator.
OBV Divergence Indicator Free Download
To download the OBV Divergence Indicator for Metatrader 4 (MT4) for free just click the button below: