The FX5_MACD_Divergence Indicator For MT4

The FX5_MACD_Divergence Indicator For MT4 draws regular and hidden divergences onto your chart. The values of the MACD indicator are used to detect divergences between price and oscillator. The FX5_MACD_Divergence Indicator For MT4 gives even alerts in real-time when a divergence is detected.

FREE FX5_MACD_Divergence Indicator

Download the FREE FX5_MACD_Divergence Indicator for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Partially Automated Trading Besides Your Day Job

Alerts In Real-Time When Divergences Occur

My Recommended MT4/MT5 Broker

 

The FX5_MACD_Divergence Indicator For MT4 uses a pretty smart approach. It detects confirmed highs and lows in the MACD as reference points to compare with the price.

Confirmed highs and lows on the MACD emerge when the price already moved a little bit into the opposite direction of the direction of the previous move.

Waiting for confirmed highs and lows on the MACD indicator ensures that the divergences ARE NOT REDRAWN. The divergences that are detected stay on the chart.

There are two main types of divergences:

1. Regular Divergences

2. Hidden Divergences

We will now examine what regular and hidden divergences are. Let's start with the regular divergences. 

The FX5_MACD_Divergence Indicator For MT4 Detects Regular Divergences

The FX5_MACD_Divergence Indicator For MT4 draws regular divergences as solid red and solid green lines.

In the following screenshot you can see 3 regular bearish divergences:

But what makes these divergences regular and bearish?

As you can see in at all 3 regular bearish divergences the price makes a higher high while at the same time the indicator (in our case the MACD ) makes a lower high. The following screenshot shows what I mean:

In the financial markets also regular bullish divergences exist.

The FX5_MACD_Divergence Indicator For MT4 draws regular bullish divergences with solid green lines. The following screenshot shows 4 solid green lines.

These 4 lines are pointing more or less to the same divergence:

And as you probably already assumed, a regular bullish divergence is defined by lower lows on the price while at the same time the oscillator makes a higher high.

The following screenshot shows what I mean:

Regular divergences are often a sign that the trend reverses the direction. At least a temporary pullback occurs in most cases. Search for regular divergences at major support / resistance areas and you will find pretty good reversal signals.

The FX5_MACD_Divergence Indicator For MT4 Detects Hidden Divergences

The FX5_MACD_Divergence Indicator For MT4 also detect hidden divergences and draws them with dotted lines. In my opinion the hidden divergences are good trend continuation signals. They rarely announce a complete reversal of the direction of a trend.

The following screenshot shows two hidden bearish divergences which are drawn with dotted lines:

A hidden bearish divergence is defined if the price makes a lower high while at the same time the oscillator makes a higher high:

The following screenshot shows a hidden bullish divergence drawn by the FX5_MACD_Divergence Indicator For MT4:

It's a hidden bullish divergence because the price makes a higher low while at the same time the oscillator makes a lower low:

Configuration of the FX5_MACD_Divergence Indicator For MT4

 

The FX5_MACD_Divergence Indicator For MT4 is highly configurable. You can define the values of the MACD . You can also hide or show the lines. And you can enable / disable the alerts:

Especially if you are new to divergences, then this indicator can help you to learn the detection of divergences.

Enjoy this good indicator :)

 

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group


Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.

Results From 5 Months!
This service starts soon! Be the first who get's notified when it begins!