PZ Divergence Trading MT5

Tricky to find and scarce in frequency, divergences are one of the most reliable trading scenarios. This indicator finds and scans for regular and hidden divergences automatically using your favourite oscillator.

• Finds regular and hidden divergences
• Supports many well known oscillators
• Implements trading signals based on breakouts
• Configurable oscillator parameters
• Customizable colors and sizes
• Filter divergences by size in bars
• Implements performance statistics
• It implements email/sound/visual alerts

To offer a broad market perspective, the indicator can be loaded many times in the same chart using different oscillators, without interference. The indicator supports the following oscillators:

• RSI
• CCI
• MACD
• OSMA
• Stochastic
• Momentum
• Awesome Oscillator
• Accelerator Oscillator
• Williams Percent Range
• Relative Vigor Index

Since divergences can expand quite a bit, especially in the Forex market, this indicator implements a twist: it waits for a donchian breakout to confirm the divergence before signaling the trade. The end result is an otherwise repainting indicator with a very reliable trading signal.

Settings

When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks. This is what each block of parameters does.

• Indicator to load - choose the oscillator to load to the chart.
• Divergence types - Enable or disable divergence types: hidden, regular or both.
• Breakout period - Breakout period in bars for the trading signals.
• Min divergence size in bars - Minimum size in bars for a divergence to be displayed.
• Max divergence size in bars - Maximum size in bars for a divergence to be displayed.
• Max. history bars - Amount of bars to evaluate when the indicator is loaded.
• Indicator Settings - Desired indicator settings for all the oscillators involved.
• ZigZag period
• RSI period
• CCI period
• WPR period
• Momentum period
• Stochastic periods
• MACD settings
• RVI period
• Drawing Settings - Choose colors and line sizes of the divergences.
• Alerts - Enable or disable alerts of all kinds, plus set a custom alert text.

Author

Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.