Diver MACD Indicator

Diver MACD Indicator

Diver MACD Indicator For MT4 automatically identifies the divergence between the price and MACD indicator. Best for bullish and bearish forex trading signals.

The Diver MACD is an excellent forex trading tool that provides buy and sell trading signals upon divergence between price and MACD. Divergence trading using the classic MACD- Moving Average Convergence Divergence indicator is a well known time tested forex trading strategy. In fact, this indicator automatically identifies the divergence and provides trading alerts.

The indicator is simple to use and is useful for new and advanced forex traders. However, new forex traders should understand the divergence trading rules before using this indicator. Generally, it works on all chart time frames and is effective for short and long-term forex traders.

Diver MACD Indicator For MT4 Trading Signals

The indicator plots green and red trend lines on the price chart once a divergence is identified. Additionally, in the MACD indicator window it plots a green up arrow for a buy trading signal and a red down arrow for sell signal. Traders should consider the combination of the divergence lines and MACD arrows signals to confirm the trade.

Traders should consider entering buy trades upon a bullish arrow signal with a stop loss below the previous swing low. This indicator does not provide a profit target so traders should exit based on good risk-reward ratio. Technical forex traders can follow a similar trading strategy in a bearish market condition.

Divergence trading is effective only in confluence with price action or other technical indicators. For best trading results, traders should confirm the divergence trading signals using price action or any candlestick pattern during their technical analysis.

Conclusion
In summary, the Diver MACD indicator for MT4 is an essential trading tool for forex traders using divergence to identify buy and sell trading signals.