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OSC Divergence Indicator Premium

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Description

The indicator locates divergences; that is situations where there’s a temporary disconnect between an oscillator such as MACD and the market price. In typical cases the MACD (or whichever oscillator is chosen) is moving against the price over a short period. These create trading opportunities.

Divergence is a favorite strategy among technical traders. This is because of its clean signal and ability to locate high probability market turning points. Figure 1 below shows an example.

Figure 1: Auto detection of MACD divergences © forexop

This tool uses a dynamic sampling method so that low probability divergence trades are filtered out in the early stages. The remainders are checked against a number of other criteria to maximize the success rate.

Buy signals are generated only where the market is deeply oversold and sell signals where the market is deeply overbought. These combined with situations where momentum is slowing are often seen where a market correction is building.

The indicator makes trade suggestions which you can act on or ignore. The trade suggestions are displayed on the chart. But if you don’t want to watch the screen all day you can receive instant alerts by:

Email
SMS – Using push notifications
Pop up alerts

The indicator doesn’t place trades for you. However, if you are looking for a fully automated system the template provided will let you easily hook it up to your own expert advisor.

SETUP

The indicator has a number of configurations to allow it to work with any instrument, timeframe or trading system. The most important of these is the choice of oscillator. A selector will set the oscillator from the following choices:

MACD – Moving Average Convergence Divergence
RSI – Relative Strength Index
Stochastic – Stochastic oscillator
OsMA – Moving Average of Oscillator
CCI – Commodity Channel Index

These oscillators are all built into Metatrader 4 so there aren’t any custom tools to install.

For a more information please see the technical guide.

Forex Trading – Foreign Exchange Course

Want to learn about Forex?

Foreign exchange, or forex, is the conversion of one country’s currency into another.
In a free economy, a country’s currency is valued according to the laws of supply and demand.
In other words, a currency’s value can be pegged to another country’s currency, such as the U.S. dollar, or even to a basket of currencies.
A country’s currency value may also be set by the country’s government.
However, most countries float their currencies freely against those of other countries, which keeps them in constant fluctuation.

Salepage : OSC Divergence Indicator Premium