The Knoxville Divergence indicator for mt4 (Metatrader 4) finds counter-trend trades based on positive and negative divergences found between price and Knoxville.
This indicator appears in the main MT4 chart window in the form of green and red divergence lines.
Buy & Sell Trade Example
- Open a buy trade when the green Knoxville Divergence line appears on the chart.
- Open a sell trade when the red Knoxville Divergence line appears on the chart.
The indicator works on all currency pairs and time frames equally.
Free Download
Download the “KnoxvilleDivergence.mq4” indicator for MT4
Indicator Chart (USD/JPY M5)
The example chart below displays the Knoxville Divergence mt4 indicator in action on the trading chart.
Trading Signals (example):
Utilize your own favorite trade entry, stop loss and take profit method to trade with the Knoxville Divergence indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Divergence
Repaint? No.
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.
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Download the “KnoxvilleDivergence.mq4” indicator for Metatrader 4
