As you can see in the chart above, you could have easily spotted a big bearish divergence because the price makes higher highs and the oscillator in this case the MACD makes lower highs. The All In One Divergence Indicator For MT4 then draw two trend line on the oscillator window. You can now wait for a break of the lower trend line in direction of the bearish divergence which is usually followed by a strong momentum move to the downside. As soon as the lower trend line is broken you could have opened a sell trade.

The configuration possibilities of the All In One Divergence Indicator For MT4 are nearly endless. In sum the indicator has 50 parameters which you can configure. Many parameters are dropdown boxes and you can select from options. the dropdown box to select the oscillator on which the analysis is done has 30 options:. My favorite oscillator is the MACD.

Therefore, I have selected the MACD and put the indicator onto the actual EURUSD H1 chart. And as you can see, All In One Divergence Indicator For MT4 made a great job with detecting today's huge upward move on EURUSD:. The following list shows all parameters of the All In One Divergence Indicator For MT4 :. As you can see from the number of parameters you can configure the indicator to your needs and preferences.

Many times there are many difficulties in your ways to get success. Many times we cannot judge that the work is going right or not. For this reason, they take some guidelines and helps from indicators and tools. Today we will tell you about a free indicator that you can use in your trade and get benefits from it. The divergence indicator is one of the technical indicators that are designed for Meta Trader 4.

This indicator is used for the trading terminal and revealing the divergence of the indicator. It displays the divergence between price and RSI technical indicator. It also measures the price action concerning an oscillator indicator. You can use any type of oscillator indicator. It is a leading indicator which tells us whether the time and price action trend remains to continue or it fades out. Using this indicator you will be buying near the bottom and you are selling near the tops.

You can enhance your profit and reduces the risk of loss in the trade. This indicator can show convergence or divergence in the trade on every oscillator. It can also guide for entry signals by creating trend lines. This indicator uses a bearish or bullish trend in the graph. If the price action makes lower price low and high price to high but the oscillators used to make the higher price low and lower price high and there is a sign of reversal divergence.

Divergence indicator Mt4 is designed for both the Meta Trader 4 and Meta trader 5 platforms. But before we mention our number three divergence indicator, it is worth noting that the FX5 MACD divergence indicator is useful across all timeframes and for all forex trading styles. The MACD Divergence indicator is next on our list of the best divergence indicators for the Metatrader 4. And just like the FX5 MACD divergence up there, this one is also based on the MACD. However, what makes them different is that this one paints the complete picture of the MACD.

In other words, you can use this indicator like your regular MACD, with the bars and the moving averages. When you install the MACD Divergence on your MT4, it is immediately apparent that this indicator only shows you the most recent divergence on the chart.

And there are pros and cons to this approach. The number one benefit is that this indicator concentrates more on the MACD part than the divergence part. You might as well call it an enhanced MACD. And the benefit of this is that you get two indicators in one; MACD divergence and the classic MACD. Another advantage of not recording the divergences it spotted in the past is that it makes your analysis chart look clean and less confusing.

When there are too many indicators on your chart, or the few indicators on your chart are too noisy, it makes the chart look cluttered. And this could hamper your judgment. You can only know as you use it to make trades on a demo account. But this can be time taking. If you can look beyond this significant disadvantage, though, the MACD Divergence is just as capable as other divergence indicators on this list. One of the standout features of the CCI Divergence indicator is that it does not have those lines on the CCI indicator window that denote divergence.

These lines can sometimes be cumbersome and make your chart look cluttered. It draws those divergence lines on the price chart, however. How then does the CCI Divergence tell you when a divergence has occurred and in what direction to trade? Through the use of arrows. Upward pointing arrows denote a buy, while downward-facing arrows denote a sell. This same simplicity, however, comes at a cost for novice traders.

Without the divergence lines on the indicator window, novice traders would struggle to understand how the divergence came to be. And this might limit their knowledge of divergences. In other words, their trades are in complete control of the signals, which is not something many expert forex traders want. Many professional traders rely on the indicator to tell trends and spot reversals through overbought and oversold levels. Divergence is another way to use this indicator to spot reversals.

The Stochastic Divergence draws lines on the price chart and the indicator window where there are divergences between the price and the indicator.

It also uses arrows to point traders in the direction in which the reversal may happen. Another helpful feature of the stochastic divergence indicator is how it alerts you whenever a new divergence signal appears. From a first glance, you may already notice that the Stochastic Divergence gives off too many signals. While this may look suspicious at first, closer inspection helps us realize that the indicator, in this default setting, is not for all traders.

Swing traders may not enjoy the seemingly endless signals of the indicator. Intraday traders who are looking to make as many trades within a day as possible, on the other hand, may enjoy receiving the numerous signals of the Stochastic Divergence.

Putting all these together makes the Stochastic Divergence one of the best divergence indicators for day traders. The TDI, at first glance, may confuse you with its lines. However, on paying closer attention, you may realize each line makes up the famous and well-relied-upon indicator, the TDI.

When he created it, he intended the indicator to measure the volatility of the price and measure the momentum of a trend.

He wanted one indicator that could easily replace two or more indicators on the chart and give him a better view of the market. However, he may not have intended for his indicator to be used as a divergence indicator, just like the other indicators on this list. And when using the TDI RT to spot reversals, you only need to pay attention to the green line on the indicator, which represents market sentiment. Unlike the others on this list, the TDI RT Alerts indicator does not display divergence lines on the chart.

This means only traders who are already good at spotting divergences in real-time can really make the best use of it. The many uses of the TDI RT Alerts indicator that help traders glean insights into trend momentums, volatility, and divergences made us consider the indicator for this list of the best divergence indicators.

Choose from this list of the best divergence indicators to help you spot divergences on your forex chart in real-time. Divergence is a situation on the forex chart where the indicator and the price go in different directions. Examples are any of these two scenarios:. The peculiar thing about divergences is how well they foretell reversals. These reversals may not always be significant, but the price still tends to bend in their direction. An issue with these divergences is that they are hard to spot for the untrained eye.

But that is the problem most of the indicators on this list solve. And in addition to solving this problem, they also have nuances that make them the best divergence indicators for the MT4. As the name suggests, this indicator has its origin in the classic RSI. The RSI is a momentum indicator that traders use to trade trends. Traders also use the RSI to mark overbought and oversold levels, from which the price is likely to reverse. Another relatively uncommon use where the RSI excels is divergence trading.

But spotting these divergences on the original RSI can be tedious. Even experts sometimes miss out on these divergences. Fortunately, this is the problem that RSI Divergence helps to solve. The RSI divergence marks every single divergence between the RSI and the price. It uses straight lines to connect the tips of the highs or lows to show that divergence has occurred in that place.

The indicator displays arrows on each divergence to signify where the price is likely to go next to carry novice traders along with these divergence signals. This simple feature makes trading divergences with the RSI Divergence indicator very easy.

The easy and intuitive way the RSI Divergence solves the problem of spotting divergences is why we have the indicator on our list of the best divergence indicators for MT4. Because of the sensitivity of the RSI Divergence, intraday traders may stand to gain the most from the indicators. However, swing traders may also be able to put the indicator to good use. Ultimately, this tool is most powerful in the hands of a trader who knows how to use it in confluence with other significant price action tools.

The FX5 MACD Divergence indicator is based on the moving averages of the MACD indicator. However, the ones it spots and displays on the chart have high success rates.

We believe swing traders would prefer this indicator above all other forex traders for that reason. But the indicator serves this purpose surprisingly well:. The FX5 MACD Divergence indicator can help spot the ends of trends, or at least temporary pauses in trends.

Anywhere you find the indicator giving a lot of signals within a short period, many of which are overlapping, these instances often coincide with the end of trends.

Although the FX5 MACD divergence indicator does its divergence duties exceptionally well, this hidden feature convinces us to rank it among one of the best divergence indicators.

But before we mention our number three divergence indicator, it is worth noting that the FX5 MACD divergence indicator is useful across all timeframes and for all forex trading styles.

The MACD Divergence indicator is next on our list of the best divergence indicators for the Metatrader 4. And just like the FX5 MACD divergence up there, this one is also based on the MACD. However, what makes them different is that this one paints the complete picture of the MACD. In other words, you can use this indicator like your regular MACD, with the bars and the moving averages.

When you install the MACD Divergence on your MT4, it is immediately apparent that this indicator only shows you the most recent divergence on the chart. And there are pros and cons to this approach. The number one benefit is that this indicator concentrates more on the MACD part than the divergence part. You might as well call it an enhanced MACD.

And the benefit of this is that you get two indicators in one; MACD divergence and the classic MACD. Another advantage of not recording the divergences it spotted in the past is that it makes your analysis chart look clean and less confusing.

When there are too many indicators on your chart, or the few indicators on your chart are too noisy, it makes the chart look cluttered. And this could hamper your judgment. You can only know as you use it to make trades on a demo account. But this can be time taking. If you can look beyond this significant disadvantage, though, the MACD Divergence is just as capable as other divergence indicators on this list.

One of the standout features of the CCI Divergence indicator is that it does not have those lines on the CCI indicator window that denote divergence.

These lines can sometimes be cumbersome and make your chart look cluttered. It draws those divergence lines on the price chart, however. How then does the CCI Divergence tell you when a divergence has occurred and in what direction to trade? Through the use of arrows. Upward pointing arrows denote a buy, while downward-facing arrows denote a sell.

This same simplicity, however, comes at a cost for novice traders. Without the divergence lines on the indicator window, novice traders would struggle to understand how the divergence came to be.

And this might limit their knowledge of divergences. In other words, their trades are in complete control of the signals, which is not something many expert forex traders want. Many professional traders rely on the indicator to tell trends and spot reversals through overbought and oversold levels.

Divergence is another way to use this indicator to spot reversals. The Stochastic Divergence draws lines on the price chart and the indicator window where there are divergences between the price and the indicator.

It also uses arrows to point traders in the direction in which the reversal may happen. Another helpful feature of the stochastic divergence indicator is how it alerts you whenever a new divergence signal appears.

From a first glance, you may already notice that the Stochastic Divergence gives off too many signals. While this may look suspicious at first, closer inspection helps us realize that the indicator, in this default setting, is not for all traders.

Swing traders may not enjoy the seemingly endless signals of the indicator. Intraday traders who are looking to make as many trades within a day as possible, on the other hand, may enjoy receiving the numerous signals of the Stochastic Divergence. Putting all these together makes the Stochastic Divergence one of the best divergence indicators for day traders.

The TDI, at first glance, may confuse you with its lines. However, on paying closer attention, you may realize each line makes up the famous and well-relied-upon indicator, the TDI. When he created it, he intended the indicator to measure the volatility of the price and measure the momentum of a trend. He wanted one indicator that could easily replace two or more indicators on the chart and give him a better view of the market.

However, he may not have intended for his indicator to be used as a divergence indicator, just like the other indicators on this list. And when using the TDI RT to spot reversals, you only need to pay attention to the green line on the indicator, which represents market sentiment.

Unlike the others on this list, the TDI RT Alerts indicator does not display divergence lines on the chart. This means only traders who are already good at spotting divergences in real-time can really make the best use of it. The many uses of the TDI RT Alerts indicator that help traders glean insights into trend momentums, volatility, and divergences made us consider the indicator for this list of the best divergence indicators. The classic OBV indicator is a momentum indicator that predicts market sentiment using changes in volume.

Many analysts and traders rely on the indicator to reveal the actions of big bank traders who drive the price up to make their profits, only to sell and bring the price down when retail traders buy. And one way the indicator does this is through divergences between volume and price. Fortunately, that is the problem the OBV Divergence solves. This divergence indicator, just like many others on this list, uses lines and arrows to represent the spotted divergences. These divergence signals are often many, so they may not be best for swing traders.

But the indicator would be a more useful tool in the hands of an intraday trader. It can send you alert notifications on your chart. However, these little things that it does well make it one of the best divergence indicators for forex traders. The classic OsMA indicator was derived from the MACD indicator. It simply traces the outline of the edges of the MACD histogram. In the FX5 MACD Divergence above, we have seen how you can use the moving averages of the MACD for divergences.

It so happens that the outline of the MACD bars can do the same. And so, the OsMA Divergence indicator was born. The OsMA Divergence spots divergences between the price and the outline of the MACD histogram bars, and it uses colored lines to denote these signals. Instead, it uses a dot to signify the end of the divergence. So, even after seeing that a divergence has formed, novice traders may still be at a loss on how to trade it. The OsMA divergence is sensitive, giving many signals.

The chances of false alerts are, thus, higher. One way to filter out some of these false signals on the OsMA divergence is to ignore the divergence lines that cut across the price. The AO Divergence Indicator is based on the AO indicator. Just like other divergence indicators, lines appear on the chart and the price to denote where divergence has occurred.

So, the false signals are limited. However, you can still get something better out of this indicator by doing this:.

It also measures the price action concerning an oscillator indicator. This indicator can show convergence or divergence in the trade on every oscillator. However, what makes them different is that this one paints the complete picture of the MACD. Alerts In Real-Time When Divergences Occur. Examples are any of these two scenarios:. Results From 5 Months!

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