AE MTF VolumeDivergence Signal Pro mt5

AE-MTF VolumeDivergence Signal Pro is a professional volume indicator with automatic detection of divergences and convergences for MT4.

Combines the classic Better Volume concept, multi-timeframe volume aggregation, and an algorithm for detecting price and volume discrepancies at extremes.
The indicator is completely self-sufficient: it works on all instruments and timeframes.

Operating principle

The histogram in a separate subwindow classifies each bar into six types of volume activity:

• Climax High   (red) - climax volume at the range maximum
• Climax Low   (white) - peak volume at range minimum
• ClimaxChurn   (purple) - climax with churning (high volume without price movement)
• HighChurn   (green) - high volume with small range
• Low Volume   (yellow) - local minimum volume over the last N bars
• Neutral   (blue) - standard volume without any special features

A moving average of volume with a configurable period is plotted on top of the histogram to visually assess the deviation of the current volume from the average.

Price/volume divergences and convergences

The indicator automatically detects pivot extremes (High/Low) and compares them with corresponding volume values. Four signal types are supported:

Bullish divergence - weakening of bearish pressure, upward reversal is likely.

Bearish divergence - weakening of bullish momentum, downward reversal is likely.

Bullish convergence is a confirmation of the strength of the upward movement.

Bearish convergence is a confirmation of the strength of the downward movement.

All detected signals are displayed as lines simultaneously on the price chart and in the volume window, allowing you to visually confirm the quality of the divergence. The minimum signal strength threshold (in %) is configured separately for divergences and convergences—weak false patterns are automatically filtered out.

Confirmation arrows

After detecting a signal, the indicator waits for a confirmation candle and only then draws an arrow on the price chart. Confirmation logic:

Multi-timeframe aggregation (MTF)

Volume on the current timeframe can be aggregated from any higher period. This allows, for example, analyzing H4 volume divergences directly on the M15 chart without switching timeframes. The indicator's subwindow title automatically displays the selected aggregation mode.

Recommendations for use

The indicator is most effective on H1 timeframes and higher when trading trend movements. A bullish divergence in a support zone or after a climax bar (Climax Low) is a strong signal to consider a long position. A bearish divergence after a series of Climax High bars increases the likelihood of a downward reversal. To improve the quality of signals, it is recommended to combine the indicator with support/resistance levels or horizontal volume levels.