RSI Divergence Indicator Download for MetaTrader 4 - Free - [TF Lab] - MT4/MT5 Resources

On June 22, 2025, in version 2, the indicator added alert/notification functionality

The RSI divergence indicator, like the automatic MACD divergence indicator, is an essential indicator technical analysis tool and one of the most critical trend reversal indicators widely used in MetaTrader 4 indicators.

The indicator automatically identifies bullish divergences at the lows and bearish divergences at the highs. It can be used with other technical analysis tools such as support and resistance levels to obtain reliable signals.

Indicator Table

The chart below shows the EUR/USD currency pair on the 4-hour time frame, where the last low was below the previous low (LL) at the end of the downtrend. Nonetheless, the RSI indicator shows bullish divergence (positive), giving a buy signal and indicating a trend reversal. Likewise, after an uptrend, the last high is higher than the previous high (HH). Nonetheless, the indicator has formed a bearish divergence (negative), indicating a sell signal and a reversal from an uptrend to a downtrend.

Overview

The RSI Divergence Indicator can detect continuation or reversal of a major trend. The indicator identifies divergences without manual chart inspection, which improves analytical accuracy and prevents human error. Divergence is often considered a reliable signal of a change in trend, so it is very beneficial to incorporate it into your trading strategy.

Uptrend signal (buy position)

The chart below shows the Dow Jones Index chart with the symbol (US30) on the 15-minute time frame. After the pullback, we see strength weakening and the indicator reaching oversold territory. This indicator detects a positive divergence between two lows at the end of a retracement (swing low) and issues a (buy) signal on the price chart.

Take Profit and Stop Loss for Buy Signals

When the price reaches the overbought zone, you can consider setting a take profit, and the stop loss can be placed near the last low.

Downtrend signal (sell position)

In the image below, the chart USD/CAD shows the currency pair on a 30-minute time frame. After an uptrend , we see a bearish divergence (negative) between the two highs at the end of the trend. Furthermore, the indicator has reached the overbought zone, in which case the (SELL) signal appears on the chart, indicating the entry of a sell trade.

Take Profit and Stop Loss for Sell Signal

When the price reaches the oversold zone, you can consider setting a take profit, and the stop loss can be placed near the last high.

RSI Divergence Indicator Settings

• RSI Period : RSI period is set to 14
• Number of candles used for pivot calculation : The number for pivot calculation is set to 8
• Maximum distance between two pivots : The maximum distance between two pivots is 30
• Minimum distance between two pivots : The minimum distance between two pivots is 5
• Number of divergences from the pivot : 1 for each pivot
• Number of RSI breaks above the line : The number of RSI breaks is set to 2
• Shift : Shift is set to 2
• Sell ​​Divergence : Set the sell signal color to pink or any color of your choice
• Buy Divergence : Set the color of the buy signal to blue or any color of your choice
• Width : The width of the divergent line can be set to 2

Conclusion

The RSI Divergence Indicator is a technical analysis tool that helps identify divergence points in the Relative Strength Index (RSI). Divergence occurs when price and RSI move in opposite directions. This type of style Price Action indicator helps traders identify potential trend changes or continuations of existing trends.