RSI Signal Divergence Metatrader 4 Forex Indicator

The RSI Signal Divergence Metatrader 4 indicator displays divergence between price and the RSI technical indicator.

This is a powerful price action forex indicator.

Divergence between price and RSI in an uptrend occurs when the price of a currency pair makes higher highs but the RSI indicator does not.

Conversely, divergence between price and RSI in an downtrend occurs when the price of a currency pair makes lower lows but the RSI indicator does not.

Spotting divergence between price and RSI is often used to trade trend reversals.

The RSI Signal Divergence Metatrader 4 indicator displays the divergence in a separate trading window below the main trading chart.

The yellow lines display divergence between price and RSI.

Free Download

Download the rsi-divergence-indicator.ex4” MT4 indicator

Example Chart

The EUR/USD H1 chart below displays the RSI Signal Divergence forex indicator in action.

Basic Trading Signals

Signals from the RSI Signal Divergence forex indicator are easy to interpret and goes as follows:

Buy Signal: When in an downtrend, the price of a currency pair makes lower lows but the RSI divergence indicator does not, this might be a signal to go long (trend reversal). Comfirm the buy trade with other technical tools.

Sell Signal: When in an uptrend, the price of a currency pair makes higher highs but the RSI divergence indicator does not, this might be a signal to go short (trend reversal). Comfirm the short trade with other technical tools.

Trade Exit: Close the open trade when an opposite signal occurs, or use your own method of trade exit.

Download

Download the rsi-divergence-indicator.ex4” Metatrader 4 indicator

MT4 Indicator Characteristics

Currency pairs: Any

Platform: Metatrader 4

Type: chart pattern

Customization options: Variable (fast EMA period, slow EMA period, signal period, K period, D period, T3 period, Alerts) Colors, width & Style.

Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month

Type: Price Action

Installation

Copy and paste the rsi-divergence-indicator.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.

You can access this folder from the top menu as follows:

File > Open Data Folder > MQL4 > Indicators (paste here)

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