The MACD Divergence Metatrader 5 forex indicator is a technical analysis tool that plots divergence lines on the MACD indicator and will dish out buy/sell trading signals by displaying green/red arrows in that order.
One advantage the indicator possess is its built-in alert feature.
For clarity, bullish divergence is represented in green lines while bearish divergence is plotted in red.
Classic divergence occurs when the lines are solid, while reversed divergence takes place when the lines are dotted.
This is for all intents and purposes a divergence indicator that is based on MACD.
Try it for any trade style including scalping, day trading and swing trading.
The EUR/JPY H1 chart below displays the MACD Divergence Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the green upward pointing arrow of the MACD Divergence Metatrader 5 forex indicator pops up following a classic bullish divergence.
Sell Signal: Go short when the red downward pointing arrow of the MACD Divergence Metatrader 5 forex indicator pops up following a classic bearish divergence
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the MACD Divergence indicator displays a red downward pointing arrow.
Exit sell trade: Close all sell orders if while a bearish trend is running, the MACD Divergence indicator pops up a green upward pointing arrow.
Tips: The MACD Divergence indicator offers a systemic approach that scalpers can adopt in multi time frame analysis, while getting the bigger picture off larger timeframes.
In as much as this is true, day traders can also begin their day by looking at this indicator.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (fastEMA, slowEMA, signalSMA, drawIndicatorTrendLines, drawPriceTrendLines, displayAlert), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: divergence | trend
Copy and paste the macd_divergence.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)