The MACD Divergence Alert indicator for Metatrader 5 spots bullish and bearish divergences that occur between price and the MACD indicator.
The MACD-based bullish and bearish divergence signals are displayed as colored arrows in both a separate chart window and the main chart.
How to interpret the green and red colored divergence arrows?
- A green colored arrow is a bullish divergence signal.
- A red colored arrow is a bearish divergence signal.
The indicator contains the following inputs and parameters: fast EMA, slow EMA, applied price, bullish color, and bearish color.
Please make yourself familiar with this technical indicator and test it first on a demo account until you fully understand how it works.
The MACD based divergence trading signals should perform equally well in any time frame and for any trading instrument of your preference.
Remember to have realistic expectations, performance will vary depending on market conditions (trending markets, sideways markets, etc.).
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MACD_Divergence.mq5 Indicator (MT5)
Chart Example
The following chart shows what the MACD Divergence Alert indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The MACD Divergence Alert Indicator?
Find a simple trading example below:
Buy Signal
- The green colored MACD divergence arrow is a buy trade signal.
- Open a buy trade and place your stop order below short-term support.
- Exit the buy trade for a risk/reward ratio of at least 1.5 or higher.
Sell Signal
- The red colored MACD divergence arrow is a sell trade signal (see chart above).
- Open a sell trade and place your stop order above short-term resistance.
- Exit the sell trade for a risk/reward ratio of at least 1.5 or higher.
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MACD_Divergence.mq5 Indicator (MT5)
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the MACD_Divergence.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click on the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on the properties
- Now you can edit the inputs, colors, levels, scale, and visualization
- Finally, click the OK button to save the new configuration