KT Stoch Divergence MT4
- Indicators
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KEENBASE SOFTWARE SOLUTIONS
Keenbase Trading develops professional MetaTrader 4 and MetaTrader 5 indicators and Expert Advisors designed to help traders make more informed trading decisions. - Version: 1.1
- Updated: 24 March 2022
- Activations: 10
If you have ever watched price make a new high while Stochastic failed to confirm it, you already know why traders pay attention to divergence. KT Stoch Divergence marks these disagreements directly on the chart, so you can spot possible reversals and trend continuation setups without drawing every line by hand.
The indicator finds both regular and hidden divergence between price and the Stochastic oscillator. It gives you context, not an automatic trade. You still decide whether the setup makes sense on your chart.
How traders use it
- Look for regular bullish divergence near support when price may be losing selling pressure.
- Look for regular bearish divergence near resistance when buying pressure may be fading.
- Use hidden divergence to find pullbacks that may continue with the existing trend.
- Use divergence as an entry filter, an exit clue, or extra confirmation for your own strategy.
Key features
- Marks regular and hidden bullish and bearish divergence.
- Works for reversal and trend continuation analysis.
- Filters unsymmetrical divergence to keep the chart cleaner.
- Includes the available MetaTrader alert options.
- Can help with both entry and exit decisions.
- Can be read from an Expert Advisor for automated strategies.
Reading the signals
- Regular bullish: price makes a lower low while Stochastic makes a higher low.
- Regular bearish: price makes a higher high while Stochastic makes a lower high.
- Hidden bullish: price makes a higher low while Stochastic makes a lower low.
- Hidden bearish: price makes a lower high while Stochastic makes a higher high.
Important trading note
Divergence is not a guaranteed buy or sell signal. From one trader to another, use it with price action, support and resistance, and the broader trend. Always manage your risk.
