About the Vladimir Ribakov Divergence Recognition Indicator
The Vladimir Ribakov Divergence Recognition for MetaTrader 4 is a signal-based trading tool that delivers clear buy and sell opportunities through an integrated visual display on the chart.
It is designed to analyze market conditions quickly and present trend information in a practical way without overcrowding the chart.
This indicator evaluates each currency pair by comparing price action against its internal oscillator to find discrepancies that suggest a current move is losing momentum and a reversal is imminent.
For every price cycle, it shows whether the trend is bullish or bearish and identifies when the market is making a move that is no longer supported by underlying volume or momentum.
Once conditions align and a divergence is confirmed, the indicator highlights a precise entry signal, helping traders act with confidence.
Free Download
Download the “Vladimir_Divergence_Recognition.mq4” indicator for MT4
Key Features
- Automatically identifies bullish and bearish divergence patterns on any timeframe.
- Functions as an early warning system for potential trend exhaustion and reversals.
- Provides objective entry points based on the decoupling of price and momentum.
Indicator Chart
The chart displays the Vladimir Ribakov Divergence Recognition indicator applied to a standard currency pair.
You can see the oscillator window at the bottom where divergence lines are drawn to match the corresponding peaks or valleys on the price chart.
When the price makes a higher high but the oscillator makes a lower high, a bearish signal is generated.
Conversely, when price makes a lower low while the oscillator makes a higher low, a bullish signal appears.
Guide to Trade with Vladimir Ribakov Divergence Recognition Indicator
Buy Rules
- Monitor the chart for the appearance of a bullish divergence signal.
- Ensure the price has formed a lower low while the indicator shows a higher low.
- Open a buy position once the divergence line is confirmed and the signal candle closes.
Sell Rules
- Monitor the chart for the appearance of a bearish divergence signal.
- Verify that the price has formed a higher high while the indicator shows a lower high.
- Open a sell position once the divergence line is confirmed and the signal candle closes.
Stop Loss
- Place the stop loss below the most recent swing low for bullish reversal trades.
- Place the stop loss above the most recent swing high for bearish reversal trades.
- Maintain a consistent buffer to account for market noise and spread.
Take Profit
- Exit the trade when a new divergence signal in the opposite direction is detected.
- Target a fixed risk to reward ratio of at least one to two.
- Close the position if the momentum oscillator reaches an extreme overbought or oversold level.
Vladimir Ribakov Divergence Recognition + Zero Lag MACD MT4 Scalping Strategy
This scalping strategy combines the precision of the Vladimir Ribakov Divergence Recognition Indicator for MT4 with the speed and accuracy of the Zero Lag MACD Indicator for MT4.
Together, they offer traders a high-probability setup for quick trades in trending and ranging markets.
The idea behind this strategy is simple.
The Divergence Recognition indicator identifies early market reversals through bullish and bearish divergences.
The Zero Lag MACD confirms the trend direction without the usual delay of a standard MACD.
This makes it perfect for traders who prefer scalping on M5 or M15 charts.
Why This Strategy Works
Divergence signals often appear before a strong reversal, but not all are reliable.
By confirming each divergence setup with the Zero Lag MACD, traders filter out false entries and only trade when both tools align.
The fast responsiveness of the Zero Lag MACD ensures timely confirmation, keeping trades efficient and controlled.
Buy Entry Rules
- Wait for a bullish divergence signal to appear on the Vladimir Ribakov Divergence Recognition Indicator.
- Confirm that the Zero Lag MACD histogram is above the zero line.
- Enter a buy trade once the candle closes, confirming both signals.
- Place the stop loss just below the recent swing low.
- Set the take profit at 1.5 to 2 times your stop loss distance.
Sell Entry Rules
- Wait for a bearish divergence signal to appear on the Divergence Recognition indicator.
- Confirm that the Zero Lag MACD histogram is below the zero line.
- Enter a sell trade after candle confirmation.
- Place the stop loss just above the recent swing high.
- Set the take profit at 1.5 to 2 times your stop loss distance.
Advantages
- Accurate entries thanks to divergence-based setups.
- Low-lag trend confirmation improves timing and precision.
- Ideal for scalping volatile pairs like GBPJPY and EURAUD.
- Easy to use on any MT4 chart with visual signals.
Drawbacks
- Divergences can appear too early, leading to premature entries.
- False MACD confirmations may occur during high volatility.
- Not ideal during strong one-directional markets.
- Requires active monitoring for quick execution.
Case Study 1 – GBPJPY M15 Chart
On the GBPJPY M15 chart, a bullish divergence appeared near the 187.20 level.
The Zero Lag MACD turned positive shortly after, confirming the uptrend.
The entry was triggered at 187.35, with a stop loss at 187.00 and a take profit at 187.95.
The trade closed successfully with a gain of 60 pips within two hours of active market movement.
Case Study 2 – EURAUD M5 Chart
In another session, a bearish divergence formed on the EURAUD M5 chart around 1.6250.
Once the Zero Lag MACD crossed below zero, a sell position was opened at 1.6245.
The stop loss was set at 1.6260 and the take profit at 1.6210.
The price dropped sharply after entry, hitting the target for a quick 35-pip profit in under 30 minutes.
Strategy Tips
- Use a spread-friendly broker since scalping requires tight spreads.
- Focus on pairs with strong momentum like GBPJPY, EURUSD, and EURAUD.
- Keep trades short and exit if divergence fails to push the price in the expected direction.
Download Now
Download the “Vladimir_Divergence_Recognition.mq4” indicator for Metatrader 4
FAQ
How does divergence detection improve my entry timing?
Divergence detection identifies a disconnect between price and momentum.
When price continues to move in a direction but the oscillator begins to move the opposite way, it shows that the current trend is losing strength.
This indicator captures these moments automatically, allowing you to enter a trade just as the market is prepared to turn, rather than chasing a trend that is already exhausted.
Is this indicator effective for scalping on the M1 timeframe?
The Vladimir Ribakov Divergence Recognition tool is versatile and can be applied to the M1 timeframe.
However, divergences on very low timeframes occur more frequently and may carry less weight than those on higher timeframes.
Scalpers often use this tool on M1 or M5 while ensuring the signals align with the general trend direction found on the M15 or H1 charts.
Summary
The Vladimir Ribakov Divergence Recognition indicator provides a sophisticated yet accessible way to trade market reversals.
By focusing on the relationship between price and momentum, it gives traders a significant advantage in spotting the end of a trend before the rest of the market reacts.
Its ability to automate the identification of complex divergence patterns makes it an invaluable asset for anyone looking to simplify their technical analysis.
