The FX5 MACD Divergence indicator can help spot the ends of trends, or at least temporary pauses in trends. But the indicator serves this purpose surprisingly well: In fact, chances are that the developers of this indicator didn’t even build it to fulfill this unique use. There’s, however, one unique use that is not immediately obvious about this technical indicator. We believe swing traders would prefer this indicator above all other forex traders for that reason. However, the ones it spots and displays on the chart have high success rates. This divergence indicator doesn’t spot too many divergences. The FX5 MACD Divergence indicator is based on the moving averages of the MACD indicator. Ultimately, this tool is most powerful in the hands of a trader who knows how to use it in confluence with other significant price action tools. However, swing traders may also be able to put the indicator to good use. The easy and intuitive way the RSI Divergence solves the problem of spotting divergences is why we have the indicator on our list of the best divergence indicators for MT4.īecause of the sensitivity of the RSI Divergence, intraday traders may stand to gain the most from the indicators. This simple feature makes trading divergences with the RSI Divergence indicator very easy. The indicator displays arrows on each divergence to signify where the price is likely to go next to carry novice traders along with these divergence signals. It uses straight lines to connect the tips of the highs or lows to show that divergence has occurred in that place. The RSI divergence marks every single divergence between the RSI and the price. Even experts sometimes miss out on these divergences.įortunately, this is the problem that RSI Divergence helps to solve. But spotting these divergences on the original RSI can be tedious. Traders also use the RSI to mark overbought and oversold levels, from which the price is likely to reverse.Īnother relatively uncommon use where the RSI excels is divergence trading. The RSI is a momentum indicator that traders use to trade trends. Table of ContentĪs the name suggests, this indicator has its origin in the classic RSI. And in addition to solving this problem, they also have nuances that make them the best divergence indicators for the MT4. But that is the problem most of the indicators on this list solve. These reversals may not always be significant, but the price still tends to bend in their direction.Īn issue with these divergences is that they are hard to spot for the untrained eye. The peculiar thing about divergences is how well they foretell reversals. The indicator has lower lows between two troughs while the price has higher lows, and vice vera.The indicator has lower highs between two peaks while the price has higher highs, and vice versa.Choose from this list of the best divergence indicators to help you spot divergences on your forex chart in real-time.ĭivergence is a situation on the forex chart where the indicator and the price go in different directions.
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