The Convergent Divergent MT4 forex indicator provides trading signals which are based on CDR and a simple moving average.
Buy/Sell signals occur when the blue signal line crosses the red signal line from above or from below.
This is called a forex crossover system.
The indicator loads in a separate Metatrader 4 window below the activity chart.
A buy signal occurs when the blue convergent/divergent line crosses above the red convergent/divergent line from below.
Conversely, a sell signal occurs when the blue convergent/divergent line crosses below the red convergent/divergent line from above.
The EUR/USD Hourly chart below displays the Convergent Divergent Forex Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Convergent Divergent MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy position when the blue signal line crosses above the red signal line from below.
Sell Signal: Open sell position when the blue signal line crosses below the red signal line from above.
Trade Exit: Use your own method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (SMA Period, CDR Window, Delta) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the convergent-divergent-range-volatility.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)