OBV Heat Candles MT5
- Indicators
-
Shipra Gupta
I’m Shipra Gupta, a trader and quantitative strategy developer with a strong background in mathematics, economics, and algorithmic trading systems. Over the years, I’ve worked extensively across forex, gold, indices, commodities, and crypto markets, focusing on building data-driven trading - Version: 1.0
OBV Heat Candles – On-Balance Volume Momentum for MetaTrader 5
OBV Heat Candles is a MetaTrader 5 (MT5) volume analysis indicator that transforms On-Balance Volume (OBV) momentum into a colour-coded candle heatmap directly on the main price chart, helping traders analyse bullish and bearish volume pressure, momentum strength, trend continuation, and potential momentum shifts without switching to a separate indicator window. By comparing OBV with a configurable moving average and evaluating how the difference changes between consecutive bars, this volume-based trading indicator classifies market conditions into four visual states: strong bullish momentum, weakening bullish momentum, improving bearish momentum, and strengthening bearish momentum. Traders can use this OBV indicator for MT5 to support price action analysis, trend confirmation, pullback evaluation, breakout analysis, and volume-momentum confluence across forex, gold (XAUUSD), indices, CFDs, and other markets where broker-provided tick-volume data is available. It includes configurable applied prices, SMA, RMA, WMA and VWMA smoothing methods, adjustable moving-average periods, custom candle colours, and historical-bar controls, making it suitable for traders who want a flexible On-Balance Volume indicator, volume momentum visualisation tool, and technical analysis companion for MetaTrader 5. The candle colours describe calculated OBV conditions rather than guaranteed trade entries or predictions of future price direction.
MT5 Expert Advisor Collection
Explore automated systems built for Gold & Bitcoin, covering breakout, scalping, momentum and multi-horizon strategies.
Gold: Range Striker | Gold Flash | Vortex Pro | Neural Scalper | Titan Forge | Quantum Pulse | GoldGridBreakout | Gold Micro Account | Gold Cortex AI
Bitcoin: BTC Strike | Alpha Vault | Edge Pilot
Nasdaq: Nasdaq Sniper Open
How to Read the Colors
Each candle represents one of four OBV momentum states:
-
Strong Bullish: OBV is at or above its moving average, and the histogram value is increasing.
-
Weak Bullish: OBV is at or above its moving average, but the histogram value is not increasing.
-
Weak Bearish: OBV is below its moving average, while the histogram value is improving.
-
Strong Bearish: OBV is below its moving average, and the histogram value is declining.
These states help you assess the relationship between price movement and volume-derived momentum. They are analytical classifications, not guarantees that price will continue in the same direction.
What You Can Use It For
Trend analysis: Observe whether bullish or bearish volume momentum remains supportive of the current price movement.
Pullback analysis: Look for changes in the heatmap while price retraces within a broader trend.
Momentum shifts: Identify when the OBV histogram begins improving or deteriorating, including situations where price direction and volume momentum may differ.
Breakout confirmation: Use the candle colors as an additional analytical reference when evaluating price breakouts. The indicator does not independently confirm that a breakout will succeed.
Multi-indicator analysis: Combine the heatmap with price action, support and resistance, or the companion OBV Signal Confluence indicator for a broader view of market conditions.
Customization Options
Adapt the indicator to your analysis style with the following settings:
-
Applied Price: Close, Open, High, Low, Median, Typical or Weighted price.
-
Moving-Average Method: Simple Moving Average (SMA), Running Moving Average (RMA), Weighted Moving Average (WMA) or Volume-Weighted Moving Average (VWMA).
-
Moving-Average Length: Set the period used to calculate the OBV signal average.
-
Candle Colors: Customize all four bullish and bearish momentum states.
-
Historical Bars: Control how many recent candles are displayed.
The default configuration uses Close price, an SMA signal average of 21 periods, and a display of up to 1,000 recent bars.
Important Information
OBV Heat Candles is a visual analysis indicator for MetaTrader 5. It does not execute trades, generate automated orders, or guarantee profitable signals.
OBV calculations depend on the volume data supplied by your broker. For many forex and CFD instruments, this is tick volume rather than centralized exchange-wide trading volume. Results may therefore vary between brokers and data feeds.
Use the indicator as one component of a trading process that includes independent confirmation, testing and appropriate ris
