FX5 MACD Divergence Indicator
Automatically identifies and draws convergence and divergence. Best FX5 MACD Divergence based divergence indicator for MetaTrader.
Description
Divergence trading is the best and successful method to identify bullish and bearish trend reversals early. However, identifying a divergence is the key to this successful forex trading method. The FX5 MACD Divergence Indicator for MT4 scans the chart and alerts the forex trader whenever there is a divergence. Moreover, the indicator also provides arrow-based BUY and SELL signals.
The MACD Divergence indicator for Metatrader 4 uses the MACD lines compared to the histogram and plots two different types of divergences: the regular divergence and the reverse divergence. The regular divergence is plotted in solid lines, while the reverse divergence is drawn in dotted lines.
In a regular bullish divergence, while the price makes a new lower low, the indicator makes a higher low. On the other hand, in a reverse bullish divergence, while the price makes a new higher low, the indicator makes a lower low. The opposite is valid for a bearish divergence.
The indicator acts as a versatile tool that provides multiple trading opportunities for the forex and stock traders by providing the trader with regular and reverse divergence and convergences.
FX5 MACD Divergence Indicator For MT4 Trade Signals
The above EURJPY H4 chart shows the BUY and SELLS arrow signals and the trend lines plotted at the Bullish and Bearish divergences.
The signals are delayed for one candle to avoid repainting the trading signals. The delay is inevitable and acceptable for technical traders as the indicator provides the best-filtered signals. However, experienced technical traders can look at the traditional MACD indicator and confirm the signals.
The indicator draws the MACD lines in Magenta and Blue color, while the bullish divergence in the price chart and indicator are in Green color. Oppositely, the indicator draws the bearish divergence in Red color.
The indicator draws divergence and convergences visually as coloured lines. Another best feature is the indicator is free to download. Also, the indicator provides alerts upon the signals. These features make it valuable for new forex and stock traders who find it cumbersome and confusing to spot and confirm convergence and divergence. However, for experienced forex and stock traders, the indicator scouts the divergences and presents them immediately for further action.
Forex traders can apply the FX5 MACD divergence Metatrader 4 indicator to any chart and in all timeframes. However, for better results, it is recommended to trade using higher time frame charts.
Conclusion
FX5 Divergence Indicator for Metatrader is the best indicator for forex and stock traders interested in trading bullish and bearish divergences. It becomes an essential technical tool. It automatically scans and alerts the forex and stock traders with both regular and reverse divergence. Finally, traders can download the indicator for free.