The RSI Divergence forex MT4 indicator scans and displays divergences between price and the RSI indicator.
It looks for both bullish and bearish divergences.
Use this indicator to trade low risk trend reversal trades in both bullish and bearish markets.
RSI Divergence works best for scalping, day trading and swing trading.
The EUR/USD M15 chart below displays the RSI Divergence forex indicator in action.
Basic Trading Signals
Trading signals from the RSI divergence indicator are simple to interpret and goes a follows:
Buy Trade: Go long when bullish divergence occurs between price and the RSI indicator
Sell Trade: Go short when bearish divergence occurs between price and the RSI indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (RSI Period, Icon, Levels) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours
Copy and paste the RSI_FWA.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)