FX5 MACD Divergence Indicator
Author: Pavel Vlasov
MACD divergence is one of the strongest signals in technical analysis. It is not always convenient to track it manually, especially when trading many instruments or on small timeframes. The FX5 MACD Divergence indicator will signal the appearance of a divergence between price and MACD and draw it on the chart.
Divergence can be used as an additional signal filter in your trading strategy.
Reference Material
- How to Use Divergence
- All About the MACD Indicator
FX5 MACD Divergence Indicator on the Chart
Indicator Settings
- fastEMA, slowEMA, signalSMA - MACD settings
- drawIndicatorTrendLines - whether or not to display divergence trend lines in the indicator window
- drawPriceTrendLines - whether or not to display divergence trend lines on the price chart
- displayAlert - whether or not to display entry signals (arrows)
The archive contains 2 versions:
1.0 - the signal appears earlier, but redrawing is possible.
1.1 - the signal appears 1 candle later, but there is no redrawing.
Which version is better depends on the trading timeframe. On 4-hour and daily charts, you can safely use 1.0 with earlier signals, while on small intervals (M5, M15), version 1.1 is more suitable.
Best regards, Pavel Vlasov
Tlap.io
#forex#indicators#download
Divergence can be used as an additional signal filter in your trading strategy.