RSI Divergence Indicator for MetaTrader 5 Download — Free — [TF Lab]

The RSI Divergence Indicator is a MetaTrader 5 oscillator that automatically identifies divergences in price charts, aiding traders in pinpointing potential reversal points without manual analysis.

💎source :
https://tradingfinder.com/products/indicators/mt5/rsi-divergence-free-download/

💎free indicator download:
https://cdn.tradingfinder.com/file/41591/rsi_divergence_mt5_by_tflab.zip

It detects positive divergences (D+) at troughs and negative divergences (D-) at peaks, displaying corresponding buy and sell signals directly on the chart.

✨This tool is versatile and can complement various analytical approaches, including classic, price action, and supply and demand strategies.

Indicator Specifications

Overview

✨Identifying divergences is essential for determining potential trend continuations or reversals. The RSI Divergence Indicator automates the detection of bullish and bearish divergences, eliminating the need for manual chart scrutiny. Incorporating this tool into your trading strategy can enhance the accuracy of trend reversal predictions.

Uptrend Signals (Buy Positions)

In the 30-minute Cardano (ADA) chart, the indicator identifies a positive divergence (RD+) during a downward correction, with the RSI dipping below 30 (oversold). A buy signal (BUY) is then displayed, suggesting a potential long opportunity.

Take Profit and Stop Loss for Buy Signals

• Take Profit: Set at levels where the price enters the overbought zone.
• Stop Loss: Positioned near the most recent trough of the correction.

✏️Downtrend Signals (Sell Positions)

In the 15-minute West Texas Oil (WTI) chart, the indicator detects a negative divergence (RD-) at the peak of an upward trend, with the RSI surpassing 70 (overbought). A sell signal (SELL) is displayed, indicating a potential short opportunity.

Take Profit and Stop Loss for Sell Signals

• Take Profit: Set at levels where the price enters the oversold zone.
• Stop Loss: Positioned near the most recent peak of the upward movement.

Indicator Settings

• RSI Period: 14
• Number of Candles for Pivots Calculation: 8
• Maximum Distance Between Two Pivots: 30
• Minimum Distance Between Two Pivots: 5
• Number of Divergences from Pivot: 1
• Number of RSI that Break the Line: 2
• Shift: 2
• Sell_Divergence Color: Pink (customizable)
• Buy_Divergence Color: Blue (customizable)
• Line Width: 2

Summary

The RSI Divergence Indicator is a vital tool for traders aiming to identify trend reversal points accurately. By automating divergence detection, it enhances trading strategies across various styles and markets. Incorporating this indicator into your MetaTrader 5 platform can significantly improve your trading performance.

FAQs

❓When should we use RSI divergence?

RSI divergences are usually very effective at market trend reversal points. Traders use this indicator to identify suitable trade entry and exit points.

❓What is the use of the RSI Divergence oscillator?

This oscillator automatically shows divergences on the price chart and identifies reversal points.