MACD Divergence Indicator Download for MetaTrader4 - Free - [TFLab] - MT4/MT5 Resources

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

The Automatic MACD Divergence indicator is an essential technical analysis tool and one of the most critical signals for identifying trend reversal or continuation MetaTrader4 indicator . It automatically detects positive divergence at lows and negative divergence at highs .

Higher highs occur when price experiences negative divergence, but the MACD indicator creates lower highs . Conversely, positive divergence occurs when prices divergence. lower lows , but the MACD indicator creates higher lows .

Indicator Table

The attached chart depicts the 1-hour timeframe of the ETHEREUM cryptocurrency . Notably, the price is trending upward at the $3350 price point, indicating continued bullish momentum .

However, a bearish divergence saw the MACD indicator fail to make higher highs, indicating a potential uptrend reversal . Instead, after a downward trend at the $2,800 price point, the price formed lower lows, indicating continued bearish pressure .

However, the MACD indicator shows positive divergence by creating a higher low , signaling a possible bullish reversal and the end of the downtrend .

Overview

The automated MACD Divergence indicator is a valuable tool for identifying trend continuations or reversals and can be integrated into a variety of trading strategies .

It efficiently detects divergences on price charts and provides reverse and trend following trading.

Uptrend Signals

This chart depicts a 1-hour Dow Jones Industrial Average (US30) broad time horizon. The MACD indicator has identified positive divergence by swinging between two consecutive lows .

This divergence , often seen as a bullish signal , indicates that downward price momentum may weaken , and a potential upward trend reversal is on the horizon.

This indicator generates a buy signal on the chart, providing a possible entry point for long positions. However, traders are advised to seek additional confirmation of their specific trading strategy before executing a trade.

Downtrend Signals

The accompanying chart depicts 30-minute NASDAQ 100 Index (NAS100) approximate time. The MACD indicator has identified negative divergence between two consecutive swing highs .

This divergence is often viewed as a bearish signal that upward price momentum may be weakening and a potential downward trend reversal is imminent. This indicator generates a sell signal on the chart, providing a possible entry point for short positions.

However, traders are advised to seek additional confirmation from their specific trading strategy before executing a trade.

MACD Divergence Indicator Settings

• Fast EMA Period: uses a 12-period exponential moving average;
• Slow EMA Period: Use 26-period exponential moving average;
• Signal SMA Period: The signal line (red) is the 9-period simple moving average;
• Number of candles used for pivot calculation: 8 candles are used to calculate the pivot point;
• 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 pivots: Each pivot should have 1 divergence;
• Number of MACDs that break this limit: 8 The MACD line should break;
• Shift : Set the translation value to 2;
• Sell ​​Divergence: Color the sell signal pink or any color of your choice;
• Buy Divergence: Color the buy signal blue or any color of your choice;
• Width: Set the width of the branch line to 2.

Conclusion

Most trend reversals occur on price charts simultaneously with divergences . Therefore, one of the most critical applications of MACD is its ability to identify divergences .

Traders use this indicator to detect potential trend reversals or continuations in their trading strategies. Divergence occurs when price and indicators move in opposite directions. This difference may indicate a trend reversal or a shift in momentum .

The Auto Divergence Oscillator filters out many of the mistakes traders may make when manually identifying divergences.