RSI Divergence Indicator Download for MetaTrader 5 - Free - [TF Lab] - MT4/MT5 Resources

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

The RSI Divergence indicator is one of the MetaTrader 5 oscillators that automatically identifies divergences in price charts. Like other divergence detection indicators, this indicator is an important tool in a trading strategy and is useful for identifying reversal points.

It detects positive divergence at troughs (D+) and negative divergence at peaks (D-) without manual chart analysis and displays the corresponding buy and sell signals on the chart. This oscillator can be used with a variety of analysis styles, including classic analysis, price action, and supply and demand analysis.

Indicator Table

The chart below shows the Gold/USD price chart on the 5-minute time frame with the symbol [XAUUSD]. On the left side of the image, after the upward movement, we see that the buyers were weak at the end of the movement and the indicator detected a bearish divergence between the peaks of the upward trend and displayed a sell signal on the chart. Likewise, at the end of the same new downtrend, we observed weakness on the sellers' side and the indicator detected a bullish divergence between two troughs at the end of the downtrend, showing a buy signal on the chart.

Overview

Detecting divergence is critical to determining whether a trend will continue or reverse. This RSI indicator can identify bullish and bearish divergences on price charts, eliminating the need for manual chart analysis, and can be used with other analysis tools. Divergences are one of the strongest signals of trend reversals , so it is recommended that you use a divergence detection tool alongside your trading strategy.

Uptrend signal (buy position)

The image below shows the Cardano cryptocurrency price chart with the symbol (CARDANO) on the 30-minute time frame. At the end of the downward correction, the indicator fell below the 30 level (oversold) and we observed a positive divergence (RD+) at the end of the correction. The indicator shows a buy signal (BUY) on the price chart. The right buying opportunity (Long) for Cardano buyers arises in this situation.

Take Profit and Stop Loss for Buy Signals

The take profit can be placed at the price that reaches the overbought zone, and the stop loss can be placed near the last trough at the end of the correction.

Downtrend signal (sell position)

The image below shows the West Texas Oil price chart with symbol (WTI) on the 15-minute time frame. At the end of the uptrend, the indicator reaches above the 70 level (overbought) and we observe a negative divergence (RD-) at the end of the trend and the indicator shows a sell signal (Sell) on the price chart. A suitable sales opportunity (Short) because the oil symbol was created for this situation.

Take Profit and Stop Loss for Sell Signal

The take profit can be placed at the price that reaches oversold territory, and the stop loss can be placed near the last peak of the uptrend.

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 color of the sell signal 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 Oscillator, like the MACD Divergence Detection Oscillator, is an important tool that should be used with any trading style and strategy. Correctly identifying trend reversal points using divergence can significantly increase the winning rate of a trade, so it is recommended to incorporate Trading Assist into your trading strategy as a confirmation factor.