PAFX Secret Indicator Download for MetaTrader 4 - Free - [TFlab] - MT4/MT5 Resources

The PAFX Secret Indicator , among MetaTrader 4 indicators , is designed to identify market trends and divergences . This indicator combines six well-known oscillators , including Momentum, CCI, RSI, Stochastic, MACD and AO , to assist in detecting chart divergences effectively.

Indicator Table

Indicator Overview

Price divergence occurs when price action does not align with technical oscillators, moving in opposite directions. This phenomenon highlights potential weaknesses in the current trend, signaling to traders that price may soon reverse the current direction and move in the opposite direction.

In the PAFX Secret indicator, divergences are visually distinguished by color: negative divergences are marked in blue , while positive divergences are highlighted in red , making it easier for traders to identify and act on these signals.

Bullish trend example

The market has formed two positive divergences from the daily chart of the Canadian dollar/yen currency pair . In this case, the new price low is lower than the previous price low, but on the indicator, the new low is higher than the previous price low. Traders can enter a buy trade after receiving the final confirmation based on their trading strategy.

Bearish trend example

Negative divergence is observed on the 4-hour chart of the GBP/JPY currency pair . After this divergence, the price forms a new high below the previous high, while on the indicator the new high is above the previous high.

This situation may indicate a weak bullish trend, and traders may consider this a potential trend sell signal , depending on their strategy.

Indicator Settings

• Chart Theme: background color of the chart;
• Indicator: indicator type, including MOMENTUM , CCI , RSI , and MACD (default: RSI);
• RSI Period: RSI calculation period (default value: 14);
• CCI Period: CCI calculation period (default: 14);
• MACD Fast Ma: Fast MA calculation of MACD (default: 12);
• MACD Slow Ma: MACD’s slow MA calculation (default: 26);
• MACD Signal: MACD signal number (default: 9);
• Stoch K: random K parameter (default value: 5);
• Stoch D: random D parameter (default value: 5);
• Stoch Slowing: Random deceleration parameter (default value: 3);
• Momentum Period: Momentum calculation period (default value: 14);
• Div Type: Divergence display type (default: regular);
• Div Min: The minimum number of candles used to calculate divergence (default: 5);
• Div Max: The maximum number of candles used to calculate divergence (default: 100);
• Line Width: Width of the divergence line (default: 2);
• Line Style: Divergent line style (default: solid line);
• Alert: Send an alert when a divergence is detected;
• Alert Sound: alarm sound type;
• Alert Mail: Email notification when disagreements occur;
• Lookback: Number of candles calculated in the indicator window.

Conclusion

Divergences are one of the key elements in technical analysis , helping traders determine the likelihood of a trend reversal in a price move.

In this MetaTrader 4 oscillator , positive divergence occurs when the price declines , but the indicator moves upward , signaling a potential trend reversal. In turn, negative divergence forms when the price is rising , but the indicator is trending downward , indicating that the uptrend may be weakening.