FXCX Divergence Indicator
Jan
FXCX Divergence is a technical price action indicator that generates super trend reversal signals in MT4 charts. It also identifies potential price movement levels and market lows, which can help you predict accurate buy/sell situations.
Relative Strength Index to detect price divergence. It filters signals by using crossovers between the backgrounds of the 5- and 13-period exponential moving averages (EMAs).
The visual appearance of FXCX Divergence in MT4 charts is very simple. However, it is a versatile tool that offers other options such as scalping and position trading.
How to use FXCX Divergence indicator (MT4) for stock and forex trading
FXCX Divergence uses a combination of EMA and RSI to identify price divergence signals. RSI detects divergence and EMA identifies trend conditions to filter trading signals. The indicator will send an arrow signal to confirm that both instruments are pointing in the same direction.
A yellow arrow at the bottom indicates a bullish divergence. The aqua blue arrow at the top indicates a bearish divergence. We will filter this trend reversal signal by taking into account other technical factors in order to evaluate buy/sell setups once we get these signals.
FXCX divergence does not generate trade exit signals. Profits should be considered within the normal risk to reward ratio (1 to 2). You can also use faster MAs to identify exit points from short-term trends and watch them closely.
Summing up
Stock traders and forex traders like divergence trading because it identifies strong trading signals. It is a sophisticated trading style and is recommended for experienced traders. FXCX Divergence Trading allows you to trade divergence setups as a beginner professional.
