Introduction to Divergence Based On Standard MACD With Alerts Indicator

Divergence trading is a popular type of reversal trading system that seasoned traders are familiar with. The MACD indicator is often the most popular for identifying divergences.

This indicator can be used by traders to identify divergences using the MACD.

What is the Divergence Based On Standard MACD With Alerts Indicator

This MACD Divergence indicator is a customized technical indicator that automatically detects divergence by using the histogram bars from a basic MACD Indiator.

It plots arrows on MACD bars to point in the direction of the reverse signal. This signal is based on divergences and its corresponding lines on price chart.

Lines connecting swing lows and swing lows that are below the price action indicate a bullish divergence, while lines connecting swing highs and swing highs above the price action indicate a bearish divergence.

Solid lines signify a regular divergence, while dashed lines indicate hidden divergence.

How does the Divergence Based On Standard MACD With Alerts Indicator Work?

Divergence Based on Standard MACD With Alerts Indicator uses an algorithm that compares the MACD bars to identify the oscillations' peaks and valleys. The indicator then compares the swing high and swing low price action values to determine the peaks or dips. Based on its algorithm, the indicator plots the lines and arrows whenever it detects divergences.

Divergence Based On Standard MACD with Alerts Indiator for MT4

You can adjust the settings of this indicator to include many options.

"displayAlert", toggles the alert on or off when a new divergence occurs.

"i_fastEMA", i_slowEMA, and "i_signalMA” refer to the time the indicator would need to calculate its underlying EMA lines.

"DrawPriceLines", toggles the plotting the lines on the price charts on and off.

"DrawArros” toggles between the on- and off of plotting the arrow signals.

"drawDivegenceLines", toggles the plotting and resetting of divergence lines.

This indicator can be used to indicate a reversal entry point based on divergences. This indicator relies on an algorithm and is therefore not perfect at identifying divergences that are objective. Before opening a trade, it is worth visually checking a divergence signal to confirm its validity. These signals should be traded in confluence to other technical indicators.

Trade Setup

How to Enter?

An indicator window that shows an arrow pointed up can be used to identify a bullish divergence signal. If the bullish divergence signal is valid, open a buy order. Place the stop loss at the support level below the entry candle.

When do you want to exit?

If price action indicates a bearish reversal, close the trade immediately.

Setup for Trades

How to Enter?

An indicator window that shows an arrow pointed down can be used to identify a bearish divergence signal. If the bearish divergence signal is valid, open a trade. Place the stop loss at the resistance higher than the entry candle.

When do you want to exit?

When price action indicates a bullish reversal, close the trade.

Conclusion

This indicator can be used to identify price divergences. It should not be taken blindly as some signals could be incorrect. Visual confirmation of divergence signals is a good way to ensure accuracy.

Indicators - Download Instructions

Divergence Based On Standard MACD with Alerts For MT4 is a Metatrader4 (MT4) indicator. The essence of this indicator is to transform the accumulated historical data.

Divergence Based On Standard MACD With Alerts Indicator For MT4 allows you to spot various patterns and peculiarities in price dynamics that are not visible to the naked eye.

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How do you install Divergence Based On Standard MACD with Alerts Indiator for MT4.mq4

• Download Divergence Based On Standard MACD With Alerts Indicator For MT4.mq4
• Copy Divergence Based On Standard MACD With Alerts Indicator For MT4.mq4 To your Metatrader Directory/experts / indicators
• Metatrader 4 Client can be restarted or started
• Choose Chart and Timeframe to test your MT4 indicator
• You can search "Custom Indicators" using your Navigator, mostly left in your Metatrader4 Client
• Right click on Divergence Based On Standard MACD With Alerts Indicator For MT4.mq4
• Attach a chart
• Change settings or click ok
• Your Chart contains Indicator Divergence Based On Standard MACD With Alerts Indicator For MT4.mq4.

How do you remove divergence based on standard MACD and Alerts Indicator MT4.mq4?

• Select the Chart in which the Indicator is running in your Metatrader4 Client
• Right-click to open the Chart
• "Indicators list"
• Select the indicator and click delete

Divergence Based On Standard MACD with Alerts Indiator for MT4 (Free download)

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