Introduction to the FX5 MACD Divergence Indicator
The FX5 MACD Divergence indicator draws divergence lines on the MACD indicator and will give buy and sell signals by displaying green and red arrows.
It also has a built-in alert function.
As the original indicator, bullish divergence is plotted in green lines while bearish divergence is plotted in red. If the divergence is classic the line will be solid and if the type is reversed the line will be interrupted.
It fits all kinds of timeframes and currency pairs.
The indicator 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.
We have also attached version 1.1 that is dedicated to traders who do not want repainted signals. The signals are not repainted buy they are delayed one candle.
How does it work? How to apply in trading?
Trading Rules Explanation
Signals provided by the FX5 MACD Divergence Indicator are really intuitive and easy to understand. Simply follow the suggestions below.
Buy Entry: Open long trade after FX5 MACD Divergence provides bullish crossover. It should happen in conjunction with an upward arrow. Place your stop loss a few pips below the last swing low.
Sell Entry: Open short trade after FX5 MACD Divergence provides bearish crossover. It should happen in conjunction with a downward arrow. Place your stop loss a few pips below the last swing high.
Exit Trade / Take Profit: Close your open position when an opposite arrow appears, or use your own method of trade exit.
How to set up the FX5 MACD Divergence indicator in MT4?
Copy and paste the FX5_MACD_Divergence_V1_0.ex4 or FX5_MACD_Divergence_V1_0.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL4 > Indicators (paste here).
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The FX5 MACD Divergence indicator is well worth adding to your trading collection but 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.
FX5 MACD Divergence Indicator Free Download
To download the FX5 MACD Divergence Indicator for Metatrader 4 (MT4) for free just click the button below: