About the Multiple Divergence Forex Indicator
The Multiple Divergence Forex Indicator for Metatrader 4 is a powerful analytical tool built to detect divergence between price action and technical oscillators.
Divergence trading is widely used to anticipate potential trend reversals before momentum fully shifts, allowing traders to enter trades earlier than traditional trend-following tools.
What sets this indicator apart is its flexibility.
Traders can choose from more than 30 different oscillators directly from the indicator inputs, including popular momentum and volume-based tools.
Once selected, the indicator automatically scans price action and plots divergence lines directly on the chart.
The Multiple Divergence Forex Indicator works on any currency pair and timeframe.
It is suitable for scalping, intraday trading, and swing trading, and it can be used either as a standalone reversal tool or as confirmation within a broader trading strategy.
Free Download
Download the “multiple-indicators-divergence.ex4” MT4 indicator
Key Features
- Detects divergence between price and oscillators.
- Supports over 30 selectable technical oscillators.
- Plots bullish and bearish divergence directly on the chart.
- Helps anticipate early trend reversals.
Indicator Chart
The Multiple Divergence Forex Indicator is displayed on the main price chart with divergence lines drawn between price swings and the selected oscillator.
Bullish divergence lines highlight potential upward reversals, while bearish divergence lines indicate possible downward moves, giving traders visual insight into momentum shifts.
Guide to Trade with Multiple Divergence Forex Indicator
Buy
- Watch for a bullish divergence line to appear on the chart.
- Confirm that the price is forming higher momentum while making lower lows.
- Enter a buy trade after the divergence signal is confirmed.
Sell
- Watch for a bearish divergence line to appear on the chart.
- Confirm weakening bullish momentum while price makes higher highs.
- Enter a sell trade after the divergence signal is confirmed.
Stop Loss
- Place the stop loss below the previous support level for buy trades.
- Place the stop loss above the previous resistance level for sell trades.
- Allow additional space if trading during volatile sessions.
Take Profit
- Target a minimum risk-to-reward ratio of 1.5.
- Scale out profits as price approaches key support or resistance zones.
- Exit the trade if momentum shifts against the position.
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.
Download Now
Download the “multiple-indicators-divergence.ex4” MT4 indicator
FAQ
Which oscillators work best with this indicator?
Momentum-based oscillators such as RSI, Stochastic, and MACD are commonly used, but traders can experiment to match their strategy.
Does the indicator repaint divergence signals?
Divergence lines are drawn after price swings are confirmed, reducing the risk of misleading signals during live trading.
Can this indicator be used in trending markets?
It can be used in trends, but divergence signals are most effective near exhaustion points or potential reversals.
Summary
The Multiple Divergence Forex Indicator for MT4 gives traders a flexible way to analyze momentum shifts using price and oscillator divergence.
With support for more than 30 oscillators, it adapts easily to different trading styles and strategies.
By helping traders anticipate reversals earlier, this indicator can improve entry timing and overall trade planning when used with proper risk management.
