The Accumulation 1.2 Divergence Forex indicator for Metatrader 4 identifies divergences between price and indicator and provides solid trading signals.
The indicator appears in a bottom window as signal lines that cross each other every time a bullish or bearish divergence occurs on the chart.
It’s a versatile indicator that can be used in many different ways.
Key Points
- Identifies bullish/bearish divergences.
- Versatile technical indicator.
- Can be used for trade entries & exits.
Free Download
Download the “Accumulation 1.2 divergence.mq4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD 1-hour chart below shows the Accumulation 1.2 Divergence indicator in action.
Basic Trading Signals
Signals from the Accumulation 1.2 Divergence indicator for Metatrader 4 are easy to interpret and goes as follows:
BUY:
- A buy signal is given when the light sea green signal line crosses the blue line bottom-up.
- Place a stop loss 2-5 pips below key support.
- Exit the buy trade for 1.5 risk-to-reward or better.
SELL:
- A sell signal is given when the light sea green signal line crosses the brown line top-down.
- Place a stop loss 2-5 pips above key resistance.
- Exit the sell trade for 1.5 risk-to-reward or better.
Accumulation Divergence + SuperTrend NRP MT4 Scalping Strategy
This MT4 scalping strategy combines the Accumulation 1-2 Divergence Forex Indicator and the SuperTrend NRP Forex Indicator for clear entry points aligned with the market trend.
It works best on M5 and M15 charts, but can also be applied on H1 for longer intraday trades.
This approach is ideal for traders looking for simple signals with high probability setups.
The strategy works because it combines momentum and trend confirmation.
The Accumulation Divergence indicator signals possible trend reversals or continuations, while the SuperTrend NRP ensures trades are only taken in the direction of the main trend.
Using both together reduces false signals and increases the chance of capturing quick market moves.
Buy Entry Rules
- Enter a buy when the light sea green signal line on the Accumulation Divergence indicator crosses the blue line from bottom to top.
- Confirm that the SuperTrend NRP line is green, showing a bullish trend.
- Place the stop loss just below the recent swing low.
- Take profit near the next resistance level or after a significant upward move identified on the chart.
- Alternatively, use 1 to 2 times the ATR value as a dynamic take profit.
Sell Entry Rules
- Enter a sell when the light sea green signal line on the Accumulation Divergence indicator crosses the brown line from top to bottom.
- Confirm that the SuperTrend NRP line is orange, indicating a bearish trend.
- Place the stop loss just above the recent swing high.
- Take profit near the next support level or after a significant downward move.
- ATR can also be used for dynamic exits.
Advantages
- Easy-to-read signals reduce trading stress.
- Combining momentum and trend filters out poor trades.
- Works on multiple time frames from M5 to H1.
- Simple setup suitable for beginners and intermediate traders.
- Can be used for scalping and short intraday trades.
Drawbacks
- Short-term charts can be noisy and produce occasional false signals.
- Requires discipline in placing stops and following exit rules.
- Spreads and slippage can reduce profits on lower time frames.
- Not ideal during low volatility periods or very flat markets.
Example Case Studies
Case Study 1 – EUR/USD M5
On November 7th, the light sea green line crossed the blue line from bottom to top at 1.0985.
The SuperTrend NRP line was green, confirming a bullish trend.
A buy trade was entered at 1.0985 with a stop loss at 1.0978, just below the recent swing low.
The next resistance level was at 1.1008.
The price moved quickly, hitting take profit at 1.1008 for a gain of 23 pips within 45 minutes.
Using the SuperTrend to confirm the trend prevented entering early during minor pullbacks.
Case Study 2 – GBP/USD M15
On October 18th, the light sea green line crossed the brown line from top to bottom at 1.2512 while the SuperTrend NRP line turned orange.
A sell trade was opened at 1.2512 with a stop loss at 1.2520, just above the recent swing high.
The next support level was at 1.2489.
The trade reached take profit at 1.2489, capturing 23 pips in 70 minutes.
This example shows how the combination of divergence and trend confirmation provides reliable entry signals.
Strategy Tips
- Wait for both the Accumulation Divergence signal and the SuperTrend confirmation before entering.
- Adjust stop loss and take profit according to volatility and recent support/resistance levels.
- Trade currency pairs with good volatility for faster scalping opportunities.
- Check for major news events that can increase risk and create unpredictable moves.
- Use trailing stops when possible to lock in profits during strong trends.
- Practice on demo accounts to understand the timing of entries, stops, and take profits before trading live.
Download Now
Download the “Accumulation 1.2 divergence.mq4” MT4 indicator
Adjustable Parameters & Settings
Levels type, levels period, upper level, lower level, divergence arrows, hidden divergence, colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Supported currency pairs: Any
Trading Platform: Metatrader 4 (MT4)
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: Divergence
