About the FX5 MACD Divergence Indicator
The FX5 MACD Divergence indicator for MT4 is designed to automatically detect high-quality divergences between price action and the MACD indicator.
Divergence trading often highlights potential trend changes or strong continuation points, and this tool removes the need for manual analysis.
After loading the indicator, it appears both on the main price chart and in a sub-window below.
This dual display allows traders to see how price behavior interacts with the MACD while keeping trade signals directly visible on the chart.
The indicator focuses only on meaningful divergence setups to reduce noise.
Instead of forcing traders to identify positive or negative divergence themselves, the FX5 MACD Divergence indicator plots ready-to-use buy and sell arrows.
This makes it suitable as a standalone trading system or as confirmation within an existing strategy.
Free Download
Download the “fx5-divergence-v1-1-indicator.mq4” MT4 indicator
Key Features
- Automatically detects MACD divergence.
- Displays signals directly on the price chart.
- Green arrows indicate bullish divergence.
- Red arrows indicate bearish divergence.
- Appears on both the main chart and the MACD sub-window.
Indicator Chart
Example chart showing the FX5 MACD Divergence indicator applied to a forex market.
The chart highlights green and red arrows placed directly on price action.
These arrows mark divergence-based buy and sell opportunities, helping traders act quickly without manual signal interpretation.
Guide to Trade with FX5 MACD Divergence
Buy Rules
- Wait for a green arrow to appear on the chart.
- Open a buy trade immediately after the signal forms.
- Confirm overall market conditions support bullish movement.
Sell Rules
- Wait for a red arrow to appear on the chart.
- Open a sell trade immediately after the signal forms.
- Confirm overall market conditions support bearish movement.
Stop Loss
- Place the stop loss 2 to 3 pips below short-term support for buy trades.
- Place the stop loss 2 to 3 pips above short-term resistance for sell trades.
Take Profit
- Exit the trade when an opposite arrow signal appears.
FX5 MACD Divergence + ZWinner Trend Forex Scalping Strategy
This MT4 scalping strategy combines the FX5 MACD Divergence Indicator and the ZWinner Trend Indicator to identify short-term reversals with confirmation from the underlying trend.
It is ideal for traders who prefer fast-paced market action and quick profit targets.
The system works best on 5-minute and 15-minute charts, especially on major pairs such as EURUSD, GBPUSD, and USDJPY during London and New York sessions.
The FX5 MACD Divergence detects when price and momentum move out of sync, signaling a possible short-term reversal.
Meanwhile, the ZWinner Trend helps confirm whether the market direction aligns with that reversal or not.
When both indicators agree, it increases the accuracy of entries.
This combination is effective because it filters false divergences and trades only when momentum supports the trend direction.
Buy Entry Rules
- Wait for the ZWinner Trend histogram to turn green, confirming a bullish environment.
- On the FX5 MACD Divergence indicator, look for a yellow histogram and a bullish divergence pattern.
- Enter a buy trade once both indicators confirm upward pressure.
- Place a stop loss a few pips below the recent swing low.
- Set a take profit level around 10–20 pips, or close when the ZWinner Trend turns red.
Sell Entry Rules
- Wait for the ZWinner Trend histogram to turn red, showing a bearish environment.
- On the FX5 MACD Divergence indicator, look for a red histogram and a bearish divergence pattern.
- Enter a sell trade once both indicators align with downward momentum.
- Place a stop loss a few pips above the recent swing high.
- Set a take profit target of 10–20 pips, or exit when the ZWinner Trend turns green.
Advantages
- Combines divergence analysis with trend confirmation for higher accuracy.
- Simple and clear visual signals make decision-making faster.
- Suitable for both beginners and experienced scalpers.
- Works well in trending and moderately volatile markets.
Drawbacks
- Requires quick execution and tight spread conditions.
- False divergence can still occur if the trend suddenly changes.
Case Study 1: EURUSD 5-Minute Chart
During the London session, EURUSD formed a bullish divergence on the FX5 MACD Divergence with a yellow histogram.
The ZWinner Trend turned green on the next candle, confirming upward momentum.
A buy order at 1.0750 quickly moved 18 pips higher.
The position was closed at 1.0768 as the ZWinner histogram started to fade, locking in a solid scalp within 20 minutes.
Case Study 2: GBPUSD 15-Minute Chart
In the New York session, GBPUSD showed a bearish divergence where price made a higher high, and the FX5 MACD Divergence displayed a red histogram.
Soon after, the ZWinner Trend turned red, confirming a short-term downtrend.
A sell entry was triggered at 1.2665, with a stop loss above 1.2680.
Price dropped sharply to 1.2635 for a 30-pip profit before the trend flattened.
Strategy Tips
- Use this setup mainly during active market hours when volatility supports fast scalping.
- Focus on pairs with tight spreads to reduce slippage and transaction costs.
- Always wait for both confirmation signals before entering a trade to avoid early reversals.
- Combine with a trailing stop to capture extended moves after strong divergence setups.
- Backtest across multiple pairs and sessions to find where the system performs best.
Download Now
Download the “fx5-divergence-v1-1-indicator.mq4” MT4 indicator
FAQ
How does the FX5 MACD Divergence indicator find signals?
The indicator analyzes divergence between price movement and the MACD oscillator.
When a strong divergence forms, it plots a clear arrow directly on the chart.
Do I need to understand MACD divergence to use this indicator?
No. The indicator automatically identifies divergence and provides ready-to-trade signals, making it accessible even to traders with limited divergence experience.
Which timeframes work best with this indicator?
The FX5 MACD Divergence indicator works on any timeframe. Higher timeframes often provide more stable signals, while lower timeframes suit active trading styles.
Summary
The FX5 MACD Divergence indicator for MT4 offers a practical solution for trading divergence without manual chart analysis.
By automatically detecting divergence and displaying clear buy and sell arrows, it streamlines decision-making.
Its ease of use, compatibility across all timeframes, and ability to function as a standalone system make it a valuable tool for traders seeking consistent divergence-based opportunities in the forex market.
