This indicator places a marker on a chart based on a divergence between trade volumes and bar sizes, i.e. if bar size has been decreasing/increasing for N continuous bars and volume has been doing the opposite, a marker will be placed.
Usually, the markers are placed near the peaks before a reverse or in the middle of a technical correction during a trend. This indicator can be used to identify potential entry or exit points, depending on the configuration of input parameters. VDM does not provide complete information about potential trades if used without other indicators.
Higher input variables values mean less frequent signals. I am currently experimenting on how the false signals can be filtered. Also, a complementary indicator, which shows the direction in which the positions should be opened, is currently in development. Feel free to post your suggestions about improving this indicator.
UPDATE 27.05.2015: I have added the lines between markers, as requested. By default, they will be the same color as the markers.
This is how it looks like:
This is to demonstrate the potential profits:
This indicator shows High and Low points for certain timeframe.Making ScreenShot
The script allows you to get a certain section of the chart image specified by the user.