BEACH WAVE DIVERGENT INDICATOR is an RSI Divergent Indicator
Every trader should've known about the famous Overbought Oversold Signal,
But relying on just the overbought and oversold signal you'll find a lot of "False Signal",
Especially in higher timeframe, where it can go overbought / oversold for a long time with no sign of reversal.
The better use of RSI is to find divergence point in it.
A divergence occur rarely in the END of the cycle, but don't get it wrong for a guaranteed reversal immediately,
A divergence only suggest that the RSI will soon move from overbought / oversold state to the reverse extreme.
While the DIVERGENCE should suggest an upcoming move either fom Oversold to Overbought or Overbought to Oversold,
The Price Doesn't necessarily do the same Reversal.
What if this is the case ?
MORE LIKELY that the trend is halted because of supply and demand shortage,
That the previous trend will continue to make higher highs or lower lows.
This EA don't automatically buy or sell, this will give Trader fast insight of the current market condition,
Traders should recognize divergence as a technically strong push to the opposite site of the current trend,
But how price react to the push, indicate how strong or weak the current trend is.
This means Trader's insight of the market is needed of how to choose reaction on the Divergence.
There are two ways to trade by this indicator:
1. If you think the trend is about to end, go react immidiately after spotting a divergence signal.
2. But if you are unsure of how the trend will go from now, you might wait until the second sign (check or cross)
Chart Sign Explanation :
1. Up Arrow = Divergence occurs suggesting that RSI would soon move to Overbought state (subsequently
2. Down Arrow = Divergence occurs suggesting that RSI would soon move to OverSold state (subsequently
3. Check Sign = The price does move align with the RSI indicator
4. Cross Sign = The price still move on the opposite of RSI indicator (Suggest Strong continuation
trend to make new higher highs / lower low)
1. Yellow = Divergent on 1 minute timeframe (the timeframe might be too small and produce too many signal)
2. Orange = Divergent on 5 minute timeframe (ideal for daytrader / swing trader)
3. Red = Divergent on 15 minute timeframe (ideal for swing trader only)
1. Period : You can choose on the period of the RSI indicator.
2. Show 1 minute : choose true to show it and false to hide it
3. Alert 1 min : Ring a ding alert on your mt4 if the divergence occur on 1 min timeframe
4. Show 1 minute : choose true to show it and false to hide it
5. Show 5 minute : choose true to show it and false to hide it
6. Alert 5 min : Ring a ding alert on your mt4 if the divergence occur on 5 min timeframe
7. Show 15 minute: choose true to show it and false to hide it
8. Alert 15 min : Ring a ding alert on your mt4 if the divergence occur on 15 min timeframe
This indicator will enhance the market insight and save your screen time, you will be notified when the market reach interesting level.
Put the indicator in your chart, and use strategy tester to find out the previous market history.
NOTE: The Automatic trading EA coming soon.