AO Divergence Indicator
Platform: MT5 Type: Pattern Last update: September 23, 2024The AO Divergence Indicator automatically recognizes divergences between price and Awesome Oscillator indicator. When the signal is spotted, it plots a buy/sell arrow accordingly. Therefore, trading with the AO Divergence Indicator becomes really easy.
How to apply AO divergence in trading?
The AO Divergence Indicator saves a trader from the hassle of manual finding Awesome Oscillator divergences. When divergence is in place, an upward arrow is placed for bullish divergence and a downward arrow for bearish divergence. Detailed instructions are provided below.
Buy Signal
Follow these steps for a long trade:
- AO Divergence plotts upward arrow
- Buy trade is triggered
- Set stop loss a few pips below the triggering arrow
- Take profit or exit trade whenever the trade reaches Risk:Reward ratio of at at least 1:1+ or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- AO Divergence plotts downward arrow
- Sell trade is triggered
- Set stop loss a few pips above the triggering
- Take profit or exit trade whenever the trade reaches Risk:Reward ratio of at at least 1:1+ or use your own method of trade exit
