AO Divergence Indicator
AO divergence indicator for MT5 gives best Forex BUY SELL signals. discrepancy detector. Accurate trend indicator.
Description
The AO Divergence indicator or Awesome Oscillator divergence indicator is a modernized version of the traditional Awesome Oscillator.
The AO Divergence indicator is calculated by subtracting two simple moving averages (SMA). The convergence and divergence of the fast SMA and the slow SMA help us determine the direction and strength of the movement, as well as detect reversal points on the chart.
This indicator is displayed as a colored histogram in a separate window below the price chart. Green bars indicate an uptrend and red bars indicate a downtrend.
The indicator also draws divergences on the chart with red and blue lines. Divergences mark the end and the beginning of a trend. The indicator’s pinpoint arrows give us BUY and SELL signals.
AO Divergence Indicator BUY/SELL signals
The CHFJPY H4 chart above shows the BUY and SELL signals for the indicator.
Whenever the AO Divergence indicator shows a bullish divergence and shows a down arrow, it is a sell signal. On the other hand, the indicator draws an up arrow and a bearish divergence for a buy signal.
With bullish momentum, the histogram of this indicator is greater than zero and begins to rise. After the next high, the bars start to fall and turn red. The green bar occurs if the histogram does not fall below 0 and turns up.
Conversely, during a bearish momentum, the histogram of the indicator falls below zero and begins to decline. After the next minimum, the bars begin to grow and turn green. The red bar occurs if the histogram does not rise above 0 and reverses down.
The zero line also illustrates BUY and SELL signals. If the histogram passes level 0 from the bottom up, this indicates a buy signal. On the contrary, if the histogram crosses the 0 level from above, this indicates that it is time to sell.
How useful is the AO Divergence indicator?
The indicator presents several BUY and SELL signals through divergences, a histogram and a zero line. Hence, it gives you exact entry and exit points.
Can I download the AO Divergence indicator for free?
Yes, the AO Divergence indicator is free to download.
Conclusion
The AO Divergence indicator displays bullish and bearish divergences along with a histogram to indicate precise entry and exit points. The indicator is free to download, so anyone can use it in their forex strategies.