Overview of the MTF_VLDMI Indicator
The MTF_VLDMI indicator for MT4 is a momentum-based oscillator that uses volatility and linear deviation concepts to generate signals. It includes options for signal smoothing, deviation-based filtering, and multi-timeframe analysis, making it adaptable to various trading styles. The indicator also supports overbought/oversold zone detection and optional slope-based color changes.
It is designed to help traders identify trend strength and possible reversal zones by comparing price deviation from its smoothed average over time. Signal lines and thresholds enhance its usability for spotting momentum shifts.
How to Use It in Practice
In live trading, you can use the MTF_VLDMI indicator to:
- Identify overbought and oversold conditions for potential reversals.
- Confirm trend strength based on the distance between main and signal lines.
- Use multi-timeframe signals for higher-accuracy confirmation setups.
- Visualize directional momentum with slope-based color change (if enabled).
Parameter Explanations
TimeFrame
Defines the timeframe used for calculation. Set to “current” to match the chart timeframe, or specify a higher timeframe for MTF analysis.
VLDMIPeriod
Sets the number of bars used for the core momentum calculation.
VLDMIAppliedPrice
Chooses the price type for calculation (e.g., close, open, high, etc.).
DevPeriod
Sets the number of bars used to calculate deviation from the mean for filtering.
DevMAPeriod
Specifies how many periods are used to smooth the deviation value.
DevMAMethod
Selects the moving average method used to smooth the deviation (e.g., Simple, EMA, etc.).
SignalMAPeriod
Defines the period for calculating the signal line.
SignalMAMethod
Sets the moving average method for the signal line smoothing.
OverBought
Specifies the upper threshold level used to signal an overbought condition.
OverSold
Specifies the lower threshold level used to signal an oversold condition.
ColorOnSlope
When set to true, the main line will change color depending on its slope (up or down), offering quick visual cues on momentum direction.
