About the Knoxville Divergence Forex Indicator
The Knoxville Divergence Forex Indicator for MT4 helps traders spot counter-trend opportunities using divergences between price and the Knoxville line.
It identifies potential reversals when trends start to exhaust.
Green and red divergence lines appear directly on the MT4 chart.
A green line signals a potential bullish reversal, while a red line signals a potential bearish reversal.
These signals give traders a way to enter trades against the short-term trend for high-probability intraday setups.
This indicator is ideal for intraday trading on pairs that show clear trending behavior.
It works best when price momentum begins to weaken, allowing traders to act on early counter-trend signals without relying on lagging indicators.
Free Download
Download the “KnoxvilleDivergence.mq4” indicator for MT4
Key Features
- Detects positive and negative divergences between price and Knoxville
- Displays green lines for bullish signals and red lines for bearish signals
- Supports counter-trend trade entries and exits
- Effective on multiple currency pairs and timeframes
- Provides early warning of trend exhaustion for intraday trades
Indicator Chart
The chart shows the Knoxville Divergence indicator applied to an MT4 chart.
Green and red divergence lines highlight potential counter-trend reversal points.
Traders can enter buy trades on green lines and sell trades on red lines.
This setup is generally good for intraday trading, using M15, M30, or H1 charts for clearer signals.
Guide to Trade with Knoxville Divergence
Buy Rules
- Use M15, M30, or H1 charts for intraday setups
- Open a buy when a green divergence line appears
- Confirm that the prior trend shows signs of exhaustion
- Optionally check for supporting candlestick patterns
Sell Rules
- Use M15, M30, or H1 charts for intraday setups
- Open a sell when a red divergence line appears
- Confirm that the prior trend is weakening
- Optionally check for supporting candlestick patterns
Stop Loss
- Place the stop beyond the recent swing high for sells
- Place the stop beyond the recent swing low for buys
- Allow a few pips buffer for market fluctuations
Take Profit
- Target the next visible support or resistance level
- Take partial profits near minor levels along the way
- Exit fully if a divergence in the opposite direction appears
Practical Tips
- Focus on pairs with clear trending behavior for reliable divergences
- Use higher timeframes for cleaner signals and fewer false trades
- Avoid trading during low liquidity periods or high-impact news
MT4 Day Trading Strategy: Knoxville Divergence + SuperTrend MTF Signal
This MT4 day trading strategy pairs the Knoxville Divergence Forex Indicator with the SuperTrend MTF Signal Indicator to capture short-term market movements with precision.
The Knoxville Divergence draws green lines when bullish divergence appears and red lines when bearish divergence appears.
The SuperTrend MTF defines the prevailing trend direction with a green line for bullish and a red line for bearish conditions.
When both align, this combination provides strong, high-probability setups for day trading.
Buy Entry Rules
- Confirm that the SuperTrend MTF line is green, indicating a bullish trend bias.
- Wait for a green divergence line to appear from the Knoxville Divergence indicator.
- Enter a buy trade at the close of the candle where the green divergence is confirmed.
- Place the stop loss below the most recent swing low or a nearby support level.
- Set the take profit target between 20 and 35 pips, or around 1.5 times the stop loss distance.
Sell Entry Rules
- Ensure the SuperTrend MTF line is red, showing a bearish trend bias.
- Wait for a red divergence line from the Knoxville Divergence indicator to appear.
- Enter a sell trade at the close of the candle where the red divergence is confirmed.
- Place the stop loss above the most recent swing high or a nearby resistance level.
- Set the take profit target between 20 and 35 pips, or around 1.5 times the stop loss distance.
Advantages
- Combines early divergence signals with trend confirmation for more accurate entries.
- Reduces false signals by filtering with trend direction.
- Works effectively across different pairs and timeframes.
- Ideal for traders seeking multiple intraday setups.
Drawbacks
- Divergence signals may lag in volatile conditions, leading to late entries.
- Choppy markets can produce frequent false reversals.
- Some signals may appear during low-volume periods, reducing effectiveness.
- Execution delays and high spreads can reduce potential profits.
- Requires active monitoring during the main trading sessions.
Case Study 1: EUR/GBP M15 Trade
On the M15 chart of EUR/GBP, the SuperTrend MTF line was green, confirming a bullish bias.
Shortly after, the Knoxville Divergence indicator plotted a green divergence line near 0.8725.
A buy trade was taken at candle close with a stop loss at 0.8708 and take profit at 0.8752.
The trade hit the target within the same session, earning about 27 pips.
Case Study 2: AUD/JPY M5 Trade
On the M5 chart of AUD/JPY, the SuperTrend MTF line turned red, confirming a bearish bias.
A red divergence line appeared at 94.80, signaling a sell entry.
The position was opened at the next candle close with a stop loss at 95.00 and a take profit at 94.55.
The target was reached within 30 minutes for a 25-pip gain.
Strategy Tips
- Focus on active trading sessions like London and New York for stronger price movements.
- Avoid trading during major news releases to prevent false divergences.
- Stick to liquid pairs such as EUR/GBP, AUD/JPY, and GBP/USD.
- Take partial profits when the price moves halfway to your target and trail the stop loss.
- Test and fine-tune stop loss and take profit levels per pair for best results.
Download Now
Download the “KnoxvilleDivergence.mq4” indicator for Metatrader 4
FAQ
Which timeframes are most effective?
M15, M30, and H1 are generally best for intraday counter-trend trades. Lower timeframes may produce more false signals.
Can this indicator be used alone?
Yes. It provides actionable counter-trend signals on its own, though confirmation indicators can improve reliability.
How reliable are the divergence signals?
Signals are most reliable when the prior trend shows clear exhaustion. Combining with candlestick patterns or trend filters increases success.
Summary
The Knoxville Divergence Forex Indicator for MT4 helps traders identify early counter-trend opportunities using green and red divergence lines.
It is generally good for intraday trading on M15–H1 charts.
Easy to interpret and versatile across currency pairs, this indicator allows traders to enter trades near trend exhaustion points.
Combining it with trend or momentum confirmation tools improves accuracy and reduces risk for intraday setups.
