AO Divergence Indicator (MT5) - Free Download - Best Forex Indicators

Introduction to the AO Divergence Indicator

The 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.

The AO Divergence Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

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

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the AO Divergence indicator in MetaTrader (MT5)?

Installation Guide

Download the AO Divergence.rar archive at the bottom of this post, unpack it, then copy and paste the AO Divergence.ex5 or AO Divergence.mq5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL5 > Indicators (paste here).

Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The AO Divergence indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex MT4 indicators to download and try.