Divergence Trading on Forex Market

The one of the strongest signals on forex market  remains divergence.

Divergence trading is one of the types of trading  and the most popular on Forex market . Divergence basically means a price action measured in accordance with the oscillator indicator.

The types of Indicators that may be used include Stochastic, RSI, CCI, MACD, or others Indicators. Divergences can be used as a leading indicator, and after you have some experience with divergences it becomes easy to spot changes. Divergences can act as an early warning that will alert you when the market could reverse.


Example of Divergence by MACD Indicator



DIVERGENCE METATRADER 4  INDICATORS

MACD Divergence Indicator

Metatrader Indicator MACD-Div indicates fractal divergence by MACD indicator.When divergence appears between MACD and the price, it indicates a high probability that the current trend will finish soon. A signal to buy is when a new Low-fractal is formed below the previous one and a corresponding MACD value is higher than the previous one. A signal to sell is when a new Up-fractal is formed above the previous one and a corresponding MACD value is lower than the previous value. The indicator has a lot of customizable settings.

MACD Divergence Indicator GBPUSD  H1


MACD Divergence Indicator GBPUSD  M30


MACD Divergence Indicator GBPUSD  M15



Stochastic Divergence Indicator

STO - Div Metatrader Indicator shows fractal divergence by Stochastic indicator . When divergence arises between Stochastic indicator and the price it means forthcoming end of current trend. The signal to buy comes when new Low-fractal is below the previous one, and corresponding Stochastic meaning is above the previous one The signal to sell comes when new Up-fractal is above the previous one and the corresponding Stochastic meaning is below the previous one.

Stochastic Divergence Indicator GBPUSD  H1




RSI Divergence Indicator

RSI-Div Metatrader Indicator shows fractal divergence by RSI indicator. When divergence arises between RSI indicator and the price it means forthcoming end of current trend. The signal to buy comes when new Low-fractal is below the previous one, and corresponding RSI meaning is above the previous one The signal to sell comes when new Up-fractal is above the previous one and the corresponding RSI meaning is below the previous one.


Power RVI Divergence Indicator

PowerRVI-Div Metatrader Indicator shows fractal divergence by PowerRVI indicator. When divergence arises between PowerRVI indicator and the price it means forthcoming end of current trend. The signal to buy comes when new Low-fractal is below the previous one, and corresponding PowerRVI meaning is above the previous one. The signal to sell comes when new Up-fractal is above the previous one and the corresponding PowerRVI meaning is below the previous one.


DIGITAL FILTER STLM Divergence Indicator


Metatrader Indicator STLM-Div indicates fractal divergence by STLM Low Frequency Digital Filter. When divergence appears between STLM Filter and the price, it indicates a high probability that the current trend will finish soon. A signal to buy is when a new Low-fractal is formed below the previous one and a corresponding STLM value is higher than the previous one. A signal to sell is when a new Up-fractal is formed above the previous one and a corresponding STLM value is lower than the previous value. The indicator has a lot of customizable settings.

Spectrogram GBPUSD H1


significant frequency: 58 and 118





Best regards,

BGF Trading Group

www.iticsoftware.com

 

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