MACD Divergence Indicator Download for MetaTrader5 - Free - [TFLab] - MT4/MT5 Resources

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

The MACD Divergence Indicator is one of the MetaTrader 5 indicator and is an essential tool in technical analysis .

Detecting divergence price charts are crucial for predicting trend reversal points . Therefore, to predict bullish trends , one can use the bullish divergence indicator's signals. Likewise, one can identify bearish trends from the signals indicated by the bearish divergence indicator.

The function of this indicator is to generate buy signals on the chart when positive divergence (D+) occurs, and sell signals when negative divergence (D-) occurs.

Indicator Table

This image depicts the global 15 minute price chart silver with the symbol (XAGUSD) . At point (A), following a downward trend , the latest low is lower than the previous low (LL).

However, the MACD indicator shows bullish (positive) divergence , leading from a downtrend to an uptrend . At point (B), after an uptrend, the latest high is higher than the previous high (HH), but a bearish (negative) divergence appears on the MACD indicator, causing the trend to change from uptrend to downtrend .

Overview

The MACD Divergence indicator is an important technical analysis tool for identifying major trend directions or trend reversals and can be used with a variety of analysis styles.

This indicator is very convenient for traders who want to quickly identify divergences in the price chart without spending a lot of time analyzing them manually.

Uptrend Signals

The 5 minute price chart of gold in US dollars with the symbol (XAUUSD) is shown in the image described. At the end of a downward trend , the MACD Divergence indicator identifies bullish divergence signals on the latest lows and issues a (BUY) price chart.

In this case, one can look for appropriate confirmations (Triggers) based on their analysis style, whether classic or modern , to enter a long (buy) position .

Downtrend Signals

The depicted image shows a 15 minute price chart of Texas oil with the symbol (WTI) . At the end of an upward trend , the indicator detected a bearish (negative) divergence between the two latest peaks and issued a signal (SELL) on the price chart.

In this case, one can look for appropriate triggers based on their analysis style, whether classic or modern , to enter short (sell) positions.

MACD Divergence Indicator Settings

• Fast EMA Period : Use the 12-period moving average as the fast EMA;
• Slow EMA Period : Use the 26-period moving average as the slow EMA;
• Signal SMA Period : Set the signal line (red) to the 9-period moving average;
• Applied Price : The indicator is calculated based on the closing price (Closeprice);
• Number of candles for pivot calculation : Set the number of candles for pivot calculation 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 pivots : There is one divergence from each pivot;
• The number of MACD break lines : The number of MACD break lines is 8;
• Shift : The shift parameter is set to 2;
• Sell ​​Divergence : You can choose the color of the sell divergence signal, such as pink or any color you like;
• Buy Divergence : Choose the color of the buy divergence signal, such as blue or any color you like;
• Width : Set the width of the divergence line to 2.

Conclusion

Major trend reversal sales in price charts often occur with the occurrence of divergences, making divergences some of the most critical indicators in trading strategies that prioritize reversal points .

Traders can use differences to identify changing trend directions or the continuation of strong trends in their trading strategies . Divergence occurs when price and indicator behavior move in opposite directions.

Differences between price action and indicators can serve as potential signal trend reversals . Utilizing this oscillator, meta-trader is particularly beneficial for traders who must be fully skilled in handling divergence - related concepts.