Volume Reversal Indicator: A Tick Spike Plus A Candle

Written by Dominic Walsh · Published 14 Jul 2026 · Last updated 18 Sep 2026

The volume reversal indicator needs two things on the same bar. Tick volume has to spike above its own recent average. The candle also has to be a pin or an engulfing bar sitting at a local extreme.

This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.

Platforms	MT4 (.ex4) + MT5 (.ex5)
Chart window	Main price chart
Plots	3: Volume Reversal Buy, Volume Reversal Sell, Volume Spike
Alerts	popup, push notification, email, sound
Inputs	12

What you get on the chart

`Volume Reversal Buy` uses arrow 233 in spring green.

`Volume Reversal Sell` uses arrow 234 in orange red.

`Volume Spike` marks every spike bar with a deep sky blue dot, code 159.

Marks sit `ArrowOffsetPts` `8` points from the candle, and the dot sits three times further out.

• Volume Reversal Buy: arrow, spring green, width 2, arrow code 233
• Volume Reversal Sell: arrow, orange red, width 2, arrow code 234
• Volume Spike: arrow, deep sky blue, width 1, arrow code 159

How the values come out

The spike test

A simple average of tick volume over `VolPeriod` `20` bars gives the baseline. The current bar has to beat that figure times `VolMult` `1.8`. Tick volume counts price updates rather than traded size.

The candle test

A pin needs a wick over `WickBodyRatio` `2.0` times the body, and it must be the larger wick. An engulfing bar needs the body to swallow the previous one. Either shape qualifies.

Location matters too

`LocalLookback` `5` asks the bar to hold the lowest low or highest high across five bars either side. Without that check a spike anywhere in a trend would qualify.

How to follow it

Blue dots show every spike, which gives context for the rarer arrows.

A mark means spike, shape and location agreed on one closed bar.

`ShowSpikeDots` turns the dot layer off when the chart gets busy.

Forex tick volume is a proxy for activity, not real traded size.

Alert channels in this build: popup, push notification, email and sound, one message per closed bar.

`EnableAlerts` opens the set and ships true with `EnablePopup`. The remaining routes wait on you: `EnablePushNotify` for the mobile app, `EnableEmail` for mail, `EnableSound` to play `SoundFile`. A closed bar sends at most one message.

Every Volume Reversal Indicator input

Core settings

Setting	What it does	Default
VolPeriod	Average volume period (SMA of tick volume). Bars in the tick volume average, default `20`.	20
VolMult	Spike multiple of average volume (loosen toward 1.5). How far above that average a bar must reach, default `1.8`.	1.8
WickBodyRatio	Hammer/star wick-to-body ratio. Wick against body for a pin bar, default `2.0`.	2.0
LocalLookback	Bars each side for local low/high. Bars either side that define a local extreme, default `5`.	5

Display settings

Setting	What it does	Default
ArrowOffsetPts	Arrow offset from bar (points). Distance from candle to mark, in points, default `8`.	8
ShowSpikeDots	Draw subtle dot on every spike bar. Draw a dot on every spike bar, default `true`.	on

Alert settings

Setting	What it does	Default
EnableAlerts	Gate covering the routes below, default `true`.	on
EnablePopup	Dialog inside MetaTrader, default `true`.	on
EnablePushNotify	Alert to the mobile app, default `false`.	off
EnableEmail	Message to the terminal mail address, default `false`.	off
EnableSound	(see inputs panel)	off
SoundFile	(see inputs panel)	alert.wav

Matching it to your chart

Tick volume needs enough updates per bar to mean much. EURUSD H1 is the reference chart, where `VolPeriod` `20` covers most of a day. On M1 the counts get thin and noisy. H4 charts smooth them out considerably.

Honest weaknesses

Tick volume differs by broker, so the same chart can score differently elsewhere.

The local extreme test needs five newer bars, which delays every mark.

A spike often marks the middle of a fast move rather than its end.

Copy the compiled Volume Reversal Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.

Background reading on the method behind the Volume Reversal Indicator: Norbert’s Gambit on Wikipedia, Bob Farrells 10 Rules at StockCharts ChartSchool.

Download the Volume Reversal Indicator for MT4 and MT5

The zip holds the compiled Volume Reversal Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.

FAQ

What does VolMult 1.8 compare against?

The twenty-bar average of tick volume. A bar has to score at least one and eight tenths of that figure. Loosening it toward 1.5 is what the source comment suggests when marks get too scarce.

Why does LocalLookback 5 delay a mark?

Because the bar must beat five bars on each side. The five newer ones have to close first, so confirmation always arrives five bars later. On EURUSD H1 that is five hours after the candle itself.

What does the Volume Spike dot mark?

Every bar that clears the spike test, whether or not the candle shape qualifies. The dot uses code 159 in deep sky blue and sits three times further out than an arrow. `ShowSpikeDots` removes the whole layer when the chart gets busy.

Why does VolMult work on a tick count?

Spot forex publishes no traded size, so nothing better exists. The tick count records how many times price updated during a bar, which at least tracks activity. Brokers count ticks their own way, so the same chart can score differently elsewhere.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Volume Reversal Indicator as one input. Always backtest before trading live.