
PTS MACD Divergence Box Indicator
Platform: MT4 Type: Momentum Last update: July 28, 2024The PTS MACD Divergence Box Indicator for MT4 automatically scans and detects the divergences between the price and Moving Average Convergence Divergence. What distinguishes this forex divergence indicator from others is that it marks green and red boxes on the charts. Such a box defines an area of divergence occurrence.
How does it work? How to apply in trading?
Trading Rules Explanation
The trading rules that apply for the PTS MACD Divergence Box Indicator are very simple. There is a buying opportunity after the green box is provided. Conversely, there is a selling opportunity after the red box is provided. Detailed instructions can be found below.
Buy Signal
Follow these steps for a long trade:
- PTS MACD Divergence Box plotts a green box
- Price leaves that box
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit whenever the PTS MACD Divergence Box draws red box, or R:R ratio reaches 2+:1, or use your own method of trade exit
Sell Signal
Follow these steps for a short trade:
- PTS MACD Divergence Box plotts a red box
- Price leaves that box
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the last swing high of the market
- Take profit or exit whenever the PTS MACD Divergence Box draws green box, or R:R ratio reaches 2+: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.