Divergences are when the highs/lows of the price chart and the highs/lows of the Stochastic Divergence Indicator charts show different dynamics.
Technicolor analysts know:
- Classical or regular divergences are signals of trend reversal.
- Hidden divergences that indicate trend continuation.
Divergences between indicator and price can give false signals. Consider the whole picture. To increase your chances of profit, give preference to selling signals in a bearish or bullish market.
How do you look for Forex divergences?
Stochastic Divergence indicator for MT4 is the best tool for looking for price divergences.
The Stochastic Divergence Indicator searches for divergences within a time frame and notifies you when they occur. You can choose to display the arrows on your chart or receive notifications by email.
This indicator allows you to analyze the effectiveness of divergences in a particular market. The image above shows how The Stochastic Divergence Indicator can accurately enter short positions in the EURUSD bearish markets.
You can adjust the time frame in which you want to search for divergences with the Stochastic Divergence Indicator. This allows you to choose the most profitable time of the day to sell or buy.
Signals to Buy
Pay attention to The Stochastic Divergence Indicator when you see higher highs or lows. The blue arrows indicate that you should enter a long position in the bullish direction. You can protect your position by placing a stop-loss lower than the previous low. If you get a counter signal, take profits.
You can use the Stochastic Divergence indicator for Metatrader to identify divergences between price or the classic Stochastic oscillator. It does not repaint.
It lets you:
- Fully automatically find divergences;
- Divergences can be found in different time frames.
- set up divergences display;
- Set up notifications
- Analyze signals from history
The Stochastic Divergence indicator for Metatrader is not guaranteed to give accurate buy or sell signals. You can increase the accuracy of signals by focusing on:
- Sell signals in proximity to resistance zones
- buy signals near support zones.
Get this MT4 indicator free of charge now!