Momentum Divergence is undoubtedly the best Forex divergence indicator around the financial market. Usually you’ll not find such tool specially the divergence based indicators with better perfection but Momentum Divergence has meet the long waited demand of divergence traders who struggles to spot such trading setups in their regular trading operations.
This indicator is suitable to use at any Forex currency pair window and fits best with all sort of timeframe charts. As Forex divergence is and ideal trading setup for Forex experts but this indicator helps newbie traders to get involved with such profitable technical setups.
Momentum Divergence Overview
Once you are done installing the indicator at your Forex MT4 terminal, your trading chart will be appeared as the following image:
This indicator spots the possible divergence created with the price action patterns. It plots buy signals when price bars create a lower low and Momentum Divergence is plotted as higher low at the same moment. Such scenario is interpreted as the bullish divergence.
On the other hand, a bearish divergence takes place when price creates a higher high with Divergence Momentum making the lower high at the same time. For an exit purpose, you should look for the opposite divergence of your entry directions.
Momentum Divergence: Buy Parameters
- Indicator plots the bullish divergence signal with the price action
- Buy triggers after the divergence is created and with a possible bullish breakout
- Set stop loss below the lower low position of the price bar
- Exit long whenever the indicator creates the bearish divergence
Momentum Divergence: Sell Parameters
- Indicator plots the bearish divergence signal with the price action
- Sell triggers after the divergence is created and with a possible bearish breakout
- Set stop loss above the higher high position of the price bar
- Exit short whenever indicator plots the bullish divergence