The Multiple Indicators Divergence is a price-action-based trend-reversal indicator, built for MT4 platforms. Its accelerator line closely reacts to the price changes and helps to outline the divergence trade setups.
In financial trading, price divergence is one of the most popular methods used for determining the trend-reversal setups. However, being able to anticipate the divergence pattern correctly is a bit challenging for beginners. In that regard, Multiple Indicators Divergence demonstrates the price divergences quite simply so that everybody can try this popular price-action method.
Multiple Indicators Divergence Overview
The Multiple Indicators Divergence is an MTF chart trading indicator. So, you can use it for any timeframes between 1-minute to daily.
The accelerator line shows you the driving force behind the price movements. This indicator automatically connects the highs and lows of the current indicator level to show the divergence setups.
Multiple Indicators Divergence Explained
This indicator marks every high and low of its accelerator curve with red and green dots. Whenever the indicator level starts to move in a trend, the indicator automatically connects the higher lows or the lower highs with straight lines to draw the trend line.
The blue trendline at the bottom of the chart is drawn based on the higher lows of the accelerator. Sometimes, the indicator creates a higher low and the price makes a lower low at the same time. We call this opposite price behavior a bullish divergence. For a bearish divergence, the accelerator needs to move to a new high while the price makes a lower high.
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Multiple Indicators Divergence: Buy Conditions
- The price makes a new low
- A blue trendline appears at the same time showing the accelerator creates a higher low
- Trigger buy after the price breaks above its recent high
Multiple Indicators Divergence: Sell Condition
- The accelerator makes a new high
- The price starts to decline and creates a lower high
- Activate a sell order when the price moves below its recent low