Description

Volume Spike Reversal EA

Short Tagline: A reversal strategy that detects climactic volume spikes signaling exhaustion.

Short Description:
Volume Spike Reversal EA is a fully automated reversal / exhaustion. Expert Advisor for MT4 and MT5. A reversal strategy that detects climactic volume spikes signaling exhaustion. Built-in risk controls and market filters keep execution disciplined across live and demo accounts.

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Overview

A reversal strategy that detects climactic volume spikes signaling exhaustion. When an abnormally high-volume candle prints against an extended move and fails to follow through, the strategy fades it, anticipating a snap-back as the aggressive flow gets absorbed.

Features

• Volume (tick or real) with a moving average (20)
• RSI(14) for over-extension confirmation
• Candle rejection analysis
• Configurable stop-loss, take-profit, and trailing logic
• Session, spread, and news-time filters for disciplined execution
• One-trade-per-bar / duplicate-signal protection
• Clean, single-file MQL4 and MQL5 implementations
• No hidden logic — every input is exposed and documented
• No martingale, no grid, no hidden recovery logic

Trading Strategy

Entry logic: – Detect a volume spike: current volume > 2.5 × its 20-period average.

• Long: spike occurs at the end of a down-move, RSI < 30, candle closes with a long lower wick (rejection). Enter on the next candle.
• Short: spike at the top of an up-move, RSI > 70, long upper wick.

Exit logic: – Exit at the prior swing / mean (e.g., EMA20) or when a fresh spike prints against the position.

Stop-loss: SL beyond the spike candle extreme plus a small buffer.

Take-profit: TP at 1.5R (first target) and the prior consolidation zone for the runner.

Trailing stop: Trail behind subsequent candle extremes once 1R is reached.

Break-even: Break-even at 1R.

Why it works: Catches exhaustion turns for high R:R.; Volume adds an orthogonal signal to price..

Recommended Settings

• Timeframes: M5, M15, H1.
• Instruments: NAS100, US30, US500, XAUUSD, EURUSD.
• Account type: ECN/Raw spread accounts preferred
• Minimum recommended balance: $500+ (adjust lot sizing to your risk tolerance)
• VPS: Recommended for 24/5 uptime and consistent execution
• Risk management: Risk 0.75% per trade (reversal risk). Max 2 open trades. Daily stop 2.5%.

Supported Markets

Index CFDs, futures-linked instruments, and forex (tick volume proxy).

Supported Brokers

Compatible with any regulated MT4 or MT5 broker offering standard order execution (market or instant execution). Works with ECN, STP, and standard account types. No broker-specific dependencies.

Installation Guide

1. Download the .ex4 (MT4) or .ex5 (MT5) file from your purchase delivery.
2. Open MetaTrader, go to File → Open Data Folder.
3. Copy the file into MQL4/Experts (MT4) or MQL5/Experts (MT5).
4. Restart MetaTrader or right-click Expert Advisors in the Navigator and select Refresh.
5. Drag the EA onto the chart of your chosen symbol and timeframe.
6. Enable Allow live trading (and Allow DLL imports if prompted) in the Common tab.
7. Adjust inputs to match your risk profile, then click OK.
8. Confirm AutoTrading is enabled in the toolbar.

• Session filter: Trade active sessions where volume is meaningful; avoid thin overnight periods.
• Spread filter: Reject if spread > 2 pips / symbol threshold.
• News filter: News causes volume spikes — wait for post-news exhaustion rather than fading the first spike.
• Volatility filter: Require the spike candle range to be elevated (climactic), confirming exhaustion rather than a normal bar.

Risk Disclaimer

Trading forex and CFDs carries a high level of risk and may not be suitable for all investors. Past performance, backtest results, and simulated outcomes are not indicative of future results. This EA does not guarantee profits. Always test thoroughly on a demo account before deploying real capital, and never risk funds you cannot afford to lose.

Version

v1.0.0

Support

Support is provided through the marketplace messaging system. Please include your broker, symbol, timeframe, and EA version when reporting an issue.

Updates

Free updates are provided for bug fixes and compatibility improvements. Feature updates may be released as versioned upgrades.

FAQ

Q: Does this EA work on both MT4 and MT5?
A: Yes, separate optimized builds are provided for each platform.

Q: Can I run this on multiple pairs at once?
A: Yes, attach separate instances to separate chart/symbol combinations.

Q: Does it use martingale or grid recovery?
A: No. This is a pure signal-based strategy with defined risk per trade.

Q: What timeframe works best?
A: M5, M15, H1. for the cleanest signals, but the EA can run on other timeframes with adjusted inputs.

Q: Is a VPS required?
A: Not required, but strongly recommended for uninterrupted 24/5 operation.