MACD Divergence with Arrows
- Indicators
- Version: 1.0
- Activations: 5
MACD Divergence with arrows complements the MACD indicator. It scans for divergence within the MACD oscillator then draws arrows on the entry points in the chart window.
NB:The indicator does not bring up the MACD window nor does it draw lines on the MACD window. The screenshots are a mere description of how they work.
The user will become alerted whenever a divergence is in progress and should WAIT for the perfect moment to make an entry. Perfect entries can be anything basic such as support and resistance zones (recommended) to complex strategies.
A divergence occurs when the market trend is opposite to the MACD indicator trend. It has been seen to be a common way to identify market reversals.
WORKS BEST ON H4 timeframe
HOW IT WORKS
The MACD Divergence with arrows indicator will scan for divergence within the MACD oscillator.
For a Buy: If the market drops lower but the MACD value rises, the MACD Divergence with arrows indicator will draw an arrow to show a divergence in progress.
For a Sell: If the market rises higher but the MACD value drops, the MACD Divergence with arrows indicator will draw an arrow to show a divergence in progress.
By default, the dark blue arrow indicates the lowest or highest points in the MACD oscillator. These points ARE NOT entry points.
The first arrow which is green by default shows the lowest or highest point in the first divergence. It indicates an entry point.
The Second arrow which is red by default shows the lowest or highest point in the second divergence. It indicates an entry point.
The Third arrow which is magenta by default shows the lowest or highest point in the third divergence. It indicates a precise entry point.
GOOD ENTRY POINTS OCCUR AROUND SUPPORT AND RESISTANT ZONES.
INPUTS
- Applied Price - in reference to MACD Applied Price.
- Fast EMA Period - in reference to MACD fast EMA Period
- Slow EMA Period - in reference to MACD slow EMA Period
- Signal Period - in reference to MACD Signal Period
- MT4 Alerts - Shows alerts on the MT4 computer platform
- Email Alerts - Sends alerts to your email.
- Phone Alerts - Sends alerts to MT4 Android or iOS application
