I just realized that VIM 7.3 has built-in support for highlighting Markdown files. Excellent. However, it doesn\'t fold on the headings.
Can any offer suggestions on
I had the same question, and played around with Jander's nice solution. The only problem is that by defining folding using syntax, you lose any Markdown syntax highlighting.
Given that you might be interested in alternate markups, I would suggest using reStructuredText, and the amazing Vst vim extension. It does folding very nicely. Rst is much more powerful than Markdown.