Stochastic Divergence Indicator
The super tool to find divergences with classic Stochastic indicator. It supports alerts, multiple timeframes and different types of divergences.
CATEGORIES: TREND, MT4, SIGNAL, INFORMATIONAL
Updated on: 26.10.2023
Divergences occur when highs/lows on the price chart and highs/lows on the Stochastic Divergence Indicator chart show different dynamics.
Technical analysts distinguish:
Classical (or regular) divergences, which give signals of trend reversal.
Hidden divergences, which give signals of trend continuation.
Since divergences between price and indicator give a lot of false signals, consider the big picture. Give preference to sell signals in a bearish market and buy signals in a bullish market to increase the likelihood of profits.
How to look for divergences in Forex?
Try Stochastic Divergence Indicator for MT4, the best tool to look for divergences between price and the classic Stochastic oscillator.
The Stochastic Divergence Indicator effectively searches for divergences on a specified timeframe and notifies you as soon as they appear. You will not miss a single signal because you can set to display arrows on the chart, receive signals by email or as a notification in the Alerts window.
Using this indicator, you can analyze how effective the divergences are in the selected market. The picture above shows how The Stochastic Divergence Indicator produces quite accurate entries in short positions on the EURUSD bearish market.
The Stochastic Divergence Indicator has an important advantage because you can adjust the timeframe to look for divergences. This helps you find the best moment during the day to buy and sell.
Buy Signals
When you see new higher highs and lows, pay attention to The Stochastic Divergence Indicator. Blue arrows will show you a signal to enter long position in the direction of the bullish trend. Protect your position by setting a stop-loss below the previous low. Take profits (all or partially), for example, when you receive a counter signal.
Sell Signals
When price breaks down the support line, and you see new lower highs and lows, pay attention to the Stochastic Divergence indicator. The red arrows will give you a signal to enter a short position in harmony with an unfolding bearish trend. Protect your trade by setting a stop-loss above the previous high. Take profits (all or partially), for example, if you receive a counter buy signal.
Conclusion
The Stochastic Divergence Indicator for Metatrader allows you to find divergences between price and classic Stochastic oscillator. It doesn’t repaint.
It allows you to:
find divergences fully automatically;
find divergences on different timeframes;
set up divergences display;
set up notifications;
analyze signals on history.
Be aware, the Stochastic Divergence Indicator for Metatrader does not guarantee accurate buy and sell signals. However, you can effectively increase the accuracy of the signals, for example, if you focus on:
sell signals near resistance zones;
buy signals near support zones.
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