About the MACD MTF Alerts Divergence Indicator
The MACD MTF Alerts Divergence Indicator for Metatrader 4 is a specialized technical tool designed to identify divergence between price action and the MACD indicator.
Divergence analysis is widely used to anticipate potential trend slowdowns and reversals before price makes a decisive move.
What makes this indicator particularly valuable is its multi time frame functionality.
It allows traders to detect divergence on higher timeframes, such as H1 or H4, and automatically project those signals onto lower trading charts like M5 or M15.
This approach helps traders align short-term entries with higher timeframe market context.
The indicator works well for scalpers and day traders who rely on precise timing.
By combining MACD divergence with MTF analysis, traders can focus on higher-quality setups and avoid chasing late market moves.
Free Download
Download the “macd-mtf-alerts-divergence-indicator.ex4” MT4 indicator
Key Features
- Detects divergence between MACD and price.
- Multi-time frame signal projection.
- Plots divergence directly on the price chart.
- Useful for both trade entry and exit decisions.
- Optimized for short-term trading strategies.
Indicator Chart
The MACD MTF Alerts Divergence Indicator is displayed on the main price chart using dotted divergence lines.
Green dotted lines highlight bullish divergence, while brown dotted lines mark bearish divergence, helping traders visualize momentum shifts coming from higher timeframes.
Guide to Trade with MACD MTF Alerts Divergence Indicator
Buy
- Wait for a green dotted divergence line to appear on the chart.
- Confirm that price is showing signs of slowing bearish momentum.
- Enter a buy trade after the signal candle closes.
Sell
- Wait for a brown dotted divergence line to appear on the chart.
- Confirm weakening bullish momentum near resistance.
- Enter a sell trade after the signal candle closes.
Stop Loss
- Place the stop loss below the most recent support for buy trades.
- Place the stop loss above the most recent resistance for sell trades.
- Increase stop distance slightly when trading volatile sessions.
Take Profit
- Target a minimum risk-to-reward ratio of 1.5.
- Exit near the next major support or resistance zone.
- Close the trade early if momentum shifts against the position.
MACD MTF Divergence Indicator + Major Trend Signal Forex Day Trading Strategy
This strategy combines the MACD MTF Alerts Divergence Indicator for MT4 and the DDFX Major Trend Indicator for MT4.
The MACD MTF Alerts Divergence indicator shows a blue histogram above 0 as a buy signal and a violet histogram below 0 as a sell signal.
The DDFX Major Trend indicator confirms the overall trend with a blue histogram for a bullish trend and a red histogram for a bearish trend.
By aligning divergence signals with trend confirmation, traders can capture intraday moves with defined entries, exits, and risk management.
This strategy works best on M30 to H1 charts during the London and New York sessions.
Buy Entry Rules
- Wait for the DDFX Major Trend histogram to turn blue, indicating a bullish trend.
- Check that the MACD MTF Alerts Divergence histogram is blue and above 0.
- Enter a buy trade at the close of the confirmation candle.
- Set a stop loss a few pips below the recent swing low.
- Take profit at the next resistance zone or use a minimum 1:2 risk-reward ratio.
Sell Entry Rules
- Wait for the DDFX Major Trend histogram to turn red, indicating a bearish trend.
- Check that the MACD MTF Alerts Divergence histogram is violet and below 0.
- Enter a sell trade at the close of the confirmation candle.
- Set a stop loss a few pips above the recent swing high.
- Take profit at the next support zone or use a minimum 1:2 risk-reward ratio.
Advantages
- Combines trend confirmation and momentum/divergence signals for higher probability trades.
- Clear visual signals simplify decision-making for intraday trades.
- Works on major pairs and during active trading sessions.
- Structured entry and exit rules make risk management easier.
Drawbacks
- Fewer trades may occur if divergence and trend signals rarely align.
- Performance weakens in choppy or low-volume markets.
Case Study 1 – EURUSD (H1 Chart)
During the London session, EURUSD showed a blue DDFX histogram, while the MACD MTF Alerts Divergence histogram turned blue above 0.
A buy trade was entered at 1.1020 with a 25-pip stop below the recent swing low and a 50-pip target.
Price moved to 1.1072 within a few hours, hitting the target and showing the effectiveness of combining trend and divergence signals.
Case Study 2 – GBPJPY (M30 Chart)
During the New York session, GBPJPY displayed a red DDFX histogram, and the MACD MTF Alerts Divergence histogram turned violet below 0.
A sell trade was entered at 190.80 with a 30-pip stop above the swing high and a 60-pip target.
Price dropped to 190.20 within 90 minutes, reaching the target.
The dual confirmation filtered out earlier false moves and captured a clear intraday trend.
Strategy Tips
- Trade only when both indicators agree in direction.
- Focus on major currency pairs with tight spreads during active sessions.
- Check higher timeframe trends (H4 or Daily) to avoid counter-trend trades.
- If DDFX histogram changes color during a trade, consider tightening the stop loss or exiting early.
Download Now
Download the “macd-mtf-alerts-divergence-indicator.ex4” MT4 indicator
FAQ
How does the multi time frame feature improve trading?
It allows traders to base entries on higher timeframe divergence while executing trades on lower charts for better timing.
Can I change which timeframe the divergence is calculated from?
Yes, the source timeframe can be adjusted in the indicator inputs to match your trading approach.
Is this indicator suitable for swing trading?
While designed for short-term trading, it can also support swing trades when higher timeframes are selected.
Does the indicator require MACD settings to be adjusted?
Default MACD settings work well, but advanced users may fine-tune them to match specific market conditions.
Summary
The MACD MTF Alerts Divergence Indicator for MT4 offers a practical way to combine divergence analysis with multi time frame insight.
By projecting higher timeframe MACD signals onto lower charts, it helps traders improve timing and focus on higher-probability setups.
Used with disciplined risk management, this indicator can become a valuable component in both scalping and day trading strategies.
