Vector Candles Indicator

### Vector Candles Indicator: Detailed Description

The Vector Candles Indicator is a sophisticated custom technical analysis tool developed for MetaTrader 5 (MT5), version 1.3, authored by Marco Engstermann with copyright dated 2026. It is designed primarily for forex traders but is versatile enough for use in stocks, cryptocurrencies, and other markets across various timeframes. The indicator operates in the chart window, providing a multi-layered visual overlay that combines volume-based candle coloring, trend-following moving averages, support/resistance levels, and alert mechanisms to help traders identify potential reversals, continuations, and key price zones. It draws inspiration from volume price analysis (VPA) concepts, emphasizing climax volume patterns that signal exhaustion in buying or selling pressure. The indicator is highly configurable through grouped input parameters, allowing users to tailor it to their trading style without needing programming knowledge.

#### Core Functionality: Volume-Based Candle Coloring

At the heart of the indicator is its intelligent candle coloring system, which analyzes volume (either tick volume or real volume, user-selectable) to classify candles into categories based on their volume relative to a historical average. This helps highlight market dynamics such as exhaustion points or sustained trends:

- **Volume Calculation**: The average volume is computed over a user-defined period (default: 20 bars), excluding the current bar to avoid lookahead bias. Dynamic multipliers can be automatically calculated using standard deviation over a lookback period (default: 200 bars) for adaptive thresholds, or set manually as fallbacks. A minimum volume filter (default: 1000) prevents false positives in low-liquidity environments, and an optional candle body size filter ensures only significant candles are flagged.

- **Candle Categories and Colors**:

  - **Normal Up (Gray)**: Average or low volume on an up candle (close > open), indicating likely continuation with no strong signal.

  - **Above Average Up (Medium Blue)**: Elevated volume on an up candle, suggesting weakening momentum and a potential pullback.

  - **Climax Up (Green)**: High-volume buying exhaustion on an up candle, implying a likely reversal downward toward the open or low.

  - **Super Climax Up (Lime)**: Extreme volume spike on an up candle, signaling a strong probable reversal downward.

  - **Normal Down (Dim Gray)**: Average or low volume on a down candle, indicating continuation.

  - **Above Average Down (Purple)**: Elevated volume on a down candle, suggesting fading selling pressure and a potential bounce.

  - **Climax Down (Dark Orange)**: High-volume selling exhaustion on a down candle, implying a reversal upward toward the open or high.

  - **Super Climax Down (Red)**: Extreme volume spike on a down candle, signaling a strong reversal upward.

  Above-average and climax detections are togglable for up/down directions separately, allowing customization (e.g., focus only on buy climaxes).

- **Arrows for Emphasis**: Optional arrows (Wingdings codes 233 for up, 234 for down) appear below/above climax or super climax candles, with customizable offsets and cooldown periods (default: 0 bars) to avoid clustering. Arrows match climax colors for quick visual cues.

#### Integrated Trend and Level Overlays

The indicator enhances the chart with multiple technical elements for comprehensive analysis:

- **Exponential Moving Averages (EMAs)**: Plots nine EMAs with periods 5, 13, 20, 50, 100, 200, 300, 500, and 800. Each has predefined colors (e.g., EMA 5: Lime, EMA 200: Gold) and individual visibility toggles, line widths (default: 1), and labels positioned with offsets to avoid clutter. Dynamic label positioning automatically adjusts for overlaps, ensuring readability.

- **Point of Control (POC)**: Calculates a volume profile over a specified number of bars (default: 100) to identify the price level with the highest traded volume, drawn as a horizontal line (color: Cadet Blue, width: 2) extending over a display length (default: 20 bars). This acts as a dynamic support/resistance zone, with a label for easy identification.

- **Daily Pivot Levels**: Draws classic daily pivots (R1-R3 resistances in red, S1-S3 supports in lime) based on the previous day's high, low, and close. Optional midpoints (M1-M4) between pivots provide finer granularity. Lines extend over a user-defined length (default: 3 bars) with customizable widths and colors.

- **Daily Lines**: Horizontal lines for the current day's open (yellow), high (aqua), and low (aqua), extending over a display length (default: 10 bars). These help track intraday ranges and potential breakouts.

All lines and labels use bar offsets for positioning, with dynamic adjustments to prevent overlaps.

#### Alerts and Notifications

To support active trading, the indicator includes alert mechanisms triggered on bar close for climax and super climax candles:

- **Alert Types**: Sound (using a specified .wav file, default: "alert.wav"), email, and push notifications.

- **Message Format**: Includes symbol, timeframe, candle type, and close time for context.

Alerts are globally togglable, ensuring they don't overwhelm in backtesting or quiet markets.

#### On-Chart Legend

A customizable legend (toggable, default: on) appears in the upper-left corner, explaining all eight candle colors with brief trading implications (e.g., "Climax Up - High-vol buy exhaustion: Reversal down to open/low likely."). It features adjustable positions, font sizes, spacing, and detail text color (default: gray) for clarity.

#### Configuration and Customization

The indicator's inputs are organized into logical groups for ease of use:

- **Volume Settings**: Control source, auto-multipliers, periods, filters, and display options.

- **Alert Settings**: Enable and configure notification methods.

- **Legend Settings**: Position, fonts, and layout.

- **EMA Settings**: Widths and visibility for each EMA.

- **POC, Pivot, and Daily Settings**: Toggles, colors, widths, and lengths.

- **Label and Arrow Settings**: Offsets, codes, multipliers, and cooldowns.

Defaults are set for immediate usability, but users can fine-tune for specific assets or strategies (e.g., increase multipliers for volatile pairs).

#### Technical Notes and Usage

- **Performance**: Efficient for real-time use, with calculations optimized to start from previously computed bars. POC uses a binning approach for volume profiles, supporting both tick and real volume.

- **Compatibility**: Works on all MT5 timeframes; timeframe-specific multiplier adjustments are applied (e.g., higher for M1-M5 to handle noise).

- **Trading Application**: Ideal for scalping (short EMAs and climaxes), swing trading (longer EMAs and pivots), or volume-based strategies. Combine with other tools for confirmation.

- **Limitations**: Relies on broker-provided volume data (tick volume approximates activity in forex); not a standalone trading system—use with risk management.

This indicator elevates standard candlestick charts into a powerful analytical dashboard, empowering traders like you, Marco, to make informed decisions based on volume dynamics and multi-timeframe context. For support, check the linked Telegram channel: https://t.me/ForexEAandMore.