The cTrader Moving average convergence divergence (MACD) Divergence indicator was invented in 1979 by a trader called Gerald Appel and to this day it is one of the most popular technical indicators used by the trading community. The MACD indicator is appreciated by traders the world over for its simplicity and flexibility that can be used either as a momentum or trend indicator.
The most reliable way to use the MACD divergence indicators is to combine them with price action.
- The divergence lines are shown both on the chart and on the indicator.
- Signal alerts are available in the form of Sound, popup, Telegram, and email.
- No repainting indicator.
- Works on all timeframes and symbols
- Does not miss a divergence setup
How does it work?
This MACD divergence indicator recognizes divergence setups and will display on your chart and MACD indicator, this is far more powerful than a standard MACD indicator that most traders use. A divergence pattern will be displayed between two MACD trend lines and this will almost always happen after a sharp price move. To identify if the price has moved quickly or slowly requires looking at the velocity and magnitude of the actual price moves around it using price action.
The indicator settings can be found when you first attach the indicator to a chart, you can also edit these settings at any time by right-clicking the mouse on the indicator lines.
- Periods - number of historical period bars (candlesticks).
- Min distance (bar index) - the minimum number of bars between the start and endpoints of the divergence.
- Show On Chart - Show/hide the divergence lines on the chart.
- Show On Indicator - Show/hide the divergence lines on the indicator.
- Alert - popup, sound, and email alert whenever it finds a new setup.
How To Install & Open
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
Join Telegram Community
You can join a Telegram community and chat with other traders to discuss, share and ask for help.