Introduction to the RSI Divergence Indicator
The name of the RSI Divergence indicator seeks for Relative Strenght Index divergences and displays them both within indicators window and on the activity chart in conjunction with buy/sell arrows.
The indicator is displayed in a separate window placed just below the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
Period – defines calculation period;
Applied price – defines price calculation method;
Overbought – defines overbought level;
Oversold – defines oversold level;
Bullish color – defines the color of bullish signal arrows and lines;
Bearish color – defines the color of bearish signal arrows and lines.
How to set up the RSI Divergence indicator in MT5?
Copy and paste the RSI_Divergence.mq5 or RSI_Divergence.ex5 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.
The RSI 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.
RSI Divergence Indicator Free Download
To download the RSI Divergence Indicator for Metatrader 5 (MT5) for free just click the button below: