The Multiple Divergence Forex indicator for Metatrader 4 enables traders to find divergences between price and over 30 different technical oscillators.
You can select the oscillator you’d like to use from the indicator’s inputs.
Divergences are mainly used to predict early trend reversals, to get you into the trade before the real move occurs.
Key Points
- Spots divergences between price and oscillator.
- Choose from over 30 different oscillators.
- Can be used for trade entries & exits.
Free Download
Download the “multiple-indicators-divergence.ex4” MT4 indicator
Indicator Chart (EUR/USD H1)
The EUR/USD H1 chart below shows the Multiple Divergence Forex indicator in action.
Basic Trading Signals
Signals from the Multiple Divergence Forex indicator for Metatrader 4 are easy to interpret and goes as follows:
BUY:
- A buy signal is given when the bullish divergence line appears on the chart.
- Set a stop loss below the previous support.
- Exit the buy trade for a risk-to-reward of 1.5 or more.
SELL:
- A sell signal is given when the bearish divergence line appears on the chart.
- Set a stop loss below the previous resistance.
- Exit the sell trade for a risk-to-reward of 1.5 or more.
Multiple Divergence Indicator + Impulse MACD Forex Day Trading Strategy
This day‐trading strategy blends the Multiple Divergence Forex Indicator for MT4 and the Impulse MACD Indicator for MT4.
The first tool highlights divergence signals — a bullish divergence line signals a potential buy setup, and a bearish divergence line signals a potential sell.
The second tool confirms trend momentum: when its histogram bars sit above the zero line, that’s a bullish trend, and when they sit below the zero line, it’s a bearish trend.
By combining divergence (which alerts to weakening momentum or trend exhaustion) with a momentum‐histogram trend filter, you gain a system geared for day trades that align with strong intraday swings.
This strategy is best used on M15 and H1 charts during active trading sessions (London + New York overlap) on major currency pairs like EURUSD, AUDUSD, and GBPJPY.
It’s for traders who want defined entries/exits within the day and avoid overnight holds.
Buy Entry Rules
- Wait for the Multiple Divergence indicator to plot a bullish divergence line (price makes lower lows while the oscillator shows higher lows) — this signals a buy opportunity.
- Confirm the Impulse MACD histogram is above zero, indicating bullish momentum.
- Enter a buy trade at the close of the confirmation candle after both conditions align.
- Set a stop loss a few pips below the most recent swing low (typically 20-30 pips on H1, 10-15 pips on M15 depending on pair volatility).
- Set your take profit either at the next major resistance zone or use a risk-reward of at least 1:2 (for example, 20 pips stop, 40 pips profit on a volatile pair on M15).
Sell Entry Rules
- Wait for the Multiple Divergence indicator to plot a bearish divergence line (price makes higher highs while the oscillator shows lower highs) — this signals a sell setup.
- Confirm the Impulse MACD histogram is below zero, showing bearish momentum.
- Enter a sell trade at the close of the candle once both conditions are met.
- Set a stop loss a few pips above the most recent swing high (20-30 pips on H1, 10-15 pips on M15 as appropriate).
- Take profit at the next support level or adopt a 1:2 risk-reward or better (for example, stop 25 pips, target 50 pips).
Advantages
- Incorporates divergence for early detection of trend reversals or momentum shifts.
- Uses a momentum‐based trend filter (Impulse MACD) to avoid counter‐trend trades.
- Clear entry and exit rules suitable for day trading — minimal ambiguity.
- Works across multiple major pairs and is adaptable to various intraday timeframes.
Drawbacks
- Divergence signals may lag or produce false signals in highly volatile or choppy markets.
- Requires patience to wait for both divergence and momentum confirmation — some opportunities are missed.
- The strategy demands good risk management as stop‐losses can get triggered during whipsaws.
- Overnight holds or news spikes can invalidate the setup quickly — best in clean, trending intraday environments.
Case Study 1 – EURUSD (M15 Chart)
In the early London session, EURUSD formed a lower low in price while the divergence indicator showed a higher low in its oscillator — bullish divergence was signalled.
At the same time, the Impulse MACD histogram had moved above zero, confirming the bullish momentum.
A buy trade was entered at 1.0950 with a 12-pip stop below the swing low and a target of 24 pips (risk-reward 1:2).
Within 45 minutes, the pair reached 1.0974, and profit was taken.
The combined signal timing delivered a clean intraday scalp.
Case Study 2 – AUDUSD (H1 Chart)
Later in the US session, AUDUSD exhibited bearish divergence: price made a higher high, but the oscillator made a lower high.
The Impulse MACD histogram was below zero, confirming bearish momentum.
A short trade was placed at 0.6765 with a 30-pip stop above the recent swing high and a target of 60 pips.
Over the next two hours, the market dropped to 0.670,5 and the profit target was hit.
Strategy Tips
- Stick to major currency pairs with tight spreads for better scalability and lower cost.
- If the Impulse MACD histogram hovers around zero or fluctuates rapidly, skip the setup — that signals indecision.
- Use a higher timeframe context (H4 or Daily) to ensure you’re not trading against the dominant trend of the day.
This MT4 day trading strategy combines the clear reversal signals of the Multiple Divergence indicator with the momentum confirmation of the Impulse MACD.
It is not a set-and-forget system, but it performs well for traders who stay actively engaged with their charts and the market.
Download Now
Download the “multiple-indicators-divergence.ex4” MT4 indicator
Adjustable Parameters & Settings
Oscillator, trend, period, T3 period, K period, D period, MA method, slow EMA period, fast EMA period, 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: Divergence
