TMA CD Divergence Indicator
TMA CD Divergence Indicator for MT5 is great tool to find divergences beetwen the price and Triangular Moving Average. It draws histogram and simple arrows signal.
Description
The TMA CD Divergence Indicator is a triangular moving average (TMA) oscillator that finds divergences on your MT5 price chart.
In this case, the TMA is the average MA that is built by subtracting the slow SMA from the fast SMA. But the main task of the indicator is to identify and determine the divergences between the price and TMA using simple and understandable signal arrows.
In addition, the indicator works great with all currency pairs and on any timeframes. And this means that it is perfect for both swing traders and intraday and long-term Forex traders.
How to Trade With TMA CD Divergence Indicator
The GBPUSD H1 chart below shows the TMA CD Divergence Indicator in action. It draws the histogram in green and red color below the main Forex chart. When the histogram bars turn green, it means there is a bullish trend. While the red bars mean the emergence of a bearish trend.
However, the indicator gives clear and simple buy and sell signals using arrows on your price chart after a divergence has formed.
Thus, when you see a green arrow, you can open a buy trade. At the same time, it is desirable to obtain another price confirmation for closing the transaction. Set your stop loss at the previous swing low. It is better to close the position when the desired risk reward is reached.
You can open a sell trade if a red down arrow appears on the chart. At the same time, Stop Loss can be set at the level of the previous swing high. And Take Profit is at an acceptable level for you or when an opposite signal appears.
By adjusting the fast and slow MA periods, you can reduce the number of false signals or increase the indicator’s response speed. In addition, you can easily customize the color scheme of the indicator to suit your MT5 chart.
Conclusion
The TMA CD Divergence Indicator is great tool for trading Forex. Because it gives you simple and easy convergence signals in the form of arrows on the price chart. You only need to have other confirmations to enter the trade with the maximum chance of profit. Thus, the indicator is great even for beginners in Forex trading. In addition, it is absolutely free and you can download it right now.