Free Forex Indicators (MT4), Trend Following Indicators

FX5 MACD Divergence V1.1

FX5 MACD Divergence V1.1 is a swing trading indicator, used to identify the potential swing levels of the market. Divergence strategy is a famous one but many newbie traders struggle to go through the complexity of identifying the divergence trade signal. This indicator helps traders to understand and recognize the divergences between market trend and the MACD.

FX5 MACD Divergence V1.1 makes the divergence trading simple thus, suitable for newbie traders. Moreover, it can be applied to trade all kinds of forex currency pairs. It also suits all sorts of timeframe charts within the MT4 platform.

FX5 MACD Divergence V1.1 Overview

After the installation, you’ll find an indicator at your chart like the image below:

FX5 MACD Divergence V1.1 Overview

FX5 MACD Divergence V1.1 Explanation

FX5 MACD Divergence V1.1 Explanation

FX5 MACD Divergence V1.1 has the ability to monitor the market high-lows and compare them with MACD at the same time in order to define potential divergence signals. As per MACD divergence rules, a divergence only occurs when the price action behaves completes opposite to the movement of MACD. This indicator signals both bullish and bearish divergences using its MACD divergence oscillators that plots crossovers as signal confirmations. It also plots arrows pointing up/downwards that helps you understanding the signal directions.

Also Read: XM Broker Review

FX5 MACD: Buy Conditions

FX5 MACD Buy Parameters
  • MACD divergence plots bullish crossovers
  • A bullish divergence signal is plotted by an upward arrow
  • Buy triggers when the above conditions are met
  • Set stop loss below the current low of the market
  • Exit long/take profit whenever the indicator plots a downward arrow

FX5 MACD: Sell Conditions

FX5 MACD Sell Parameters
  • MACD divergence plots bearish crossovers
  • A bearish divergence signal is plotted by a downward arrow
  • Sell triggers when the above conditions are met
  • Set stop loss above the current high of the market
  • Exit short/take profit whenever the indicator plots an upward arrow

I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

Leave a Comment

About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
RoboForex Welcome Bonus