Operate Divergence

The indicator operates a trend of divergence.

The product is based on the MACD divergence.

When the price line and the MACD line go together in the same direction, it indicates that that the trend will continue.

The divergence between the direction of the price line and the MACD line indicates a possible reversal of trend. In an uptrend, a bearish divergence occurs when prices keep rising and the MACD line in the overbought region begins to fall. In a downtrend, a bullish divergence occurs when prices keep falling and the MACD line in the oversold region begins to rise. These differences indicate tops and bottoms.

The indicator analyzes these differences and emits a warning signal and a graphic signal when these differences happen in this period.

• This indicator can be used for all currency pairs and for all timeframes.
• Platform - metaTrader 4.

Inputs

• Quick Media: fastEMA = 12;
• Slow Media: slowEMA = 26;
• MACD sign: signalSMA=9;
• You can receive an alert:
• displayalert=true;
• You can see the signs on the charts:
• drawIndicatorTrendLines=true;
• drawPriceTrendLines=true;
• ShowCrossings = true;
• Signal color:
• Color_Crossing=DimGray.