Knoxville Divergence Indicator MT5 Free Download | Forex Indicator Download - MetaTrader 5 Resources - MetaTrader 5 Resources

The Knoxville Divergence indicator is constructed using two technical indicators: Relative Strength Index (RSI) and Momentum .

By analyzing the difference between price movement and momentum, this indicator can identify conditions where the current trend may weaken, thereby indicating the likelihood of a reversal or price correction.

Knoxville Deviation Detection Metrics Specification Sheet

Specifications for the Knoxville Divergence Detection Indicator are shown in the table below.

Knoxville Divergence Detection Indicators at a Glance

The Knoxville Divergence Indicator analyzes momentum to detect price divergences and displays them as colored lines on the chart.

These lines include:

• Green line: represents positive divergence
• Red line: indicates the existence of negative divergence

Positive Divergence

Based on the GBP/USD 30-minute chart, this indicator has identified divergences between price and momentum and displayed them on the chart.

In this case, traders can establish buy positions based on their analysis and judgment trading strategy .

Negative Divergence

According to the EUR/JPY chart, the indicator shows negative divergence by comparing price action and momentum. As shown in the chart, after this divergence, the price entered a downtrend.

Knoxville Divergence Indicator Setup

The image below shows the settings panel of the Knoxville Divergence Detection indicator:

• LookbackCandles: The number of candles used to analyze the divergence
• MomentumPeriod: momentum calculation period
• MomentumPrice: Momentum calculated price
• RSIPeriod: RSI calculation period
• RSIPrice: RSI calculated price
• RSIBearLimit: overbought threshold
• RSIBullLimit: Oversold threshold

Conclusion

The Knoxville Divergence Detection Indicator uses RSI and momentum to analyze the difference between price movements and the actual price. Market strength identifies divergences.

These divergences appear on the chart as a green line for bullish signals and a red line for bearish signals. The main function of this indicator is to provide early warning of potential trends in reversal zones .