The MACD MTF Alerts Divergence indicator for Metatrader 4 finds interesting divergences between price and the MACD technical indicator.
The indicator includes the MTF (multiple time frame) functionality.
For instance, it finds divergence signals on the H1 chart and plots them on the M5 chart.
You can edit the MTF function by editing the indicator’s inputs tab.
Generally speaking, the indicator works great for scalpers and day traders (shorter-term trade opportunities).
Key Points
- Finds divergences between MACD and price.
- MTF function.
- Can be used for trade entries & exits.
Free Download
Download the “macd-mtf-alerts-divergence-indicator.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below shows the MACD MTF Alerts Divergence indicator in action.
Basic Trading Signals
Signals from the MACD MTF Alerts Divergence Forex indicator for Metatrader 4 are easy to interpret and go as follows:
BUY:
- A new buy signal is given when the green dotted line appears on the chart (bullish divergence).
- Set a stop loss below the previous support.
- Exit the buy trade for a risk-to-reward of 1.5 or more.
SELL:
- A new sell signal is given when the orange dotted line appears on the chart (bearish divergence).
- Set a stop loss below the previous resistance.
- Exit the sell trade for a risk-to-reward of 1.5 or more.
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
Adjustable Parameters & Settings
Time frame, price, fast period, slow period, signal period, method, divergence, colors, width, style.
Feel free to explore the indicator’s different parameters and settings to create your own personalized indicator setup.
More Info About This Indicator
Supported currency pairs: Any
Trading Platform: Metatrader 4 (MT4)
Time Frames: M1, M5, M15, M30, H1, H4, D1, W1
Indicator Type: MACD + divergence
