Watch the testing video here:
PTS MACD Divergence Box Indicator
The PTS MACD Divergence Box Indicator automatically scans and detects the divergences between the price and Moving Average Convergence Divergence. What distinguishes this forex divergence indicator from others is that it marks green and red boxes on the charts. Such a box defines an area of divergence occurrence.
The PTS MACD Divergence Box Indicator fits all kinds of timeframes and currency pairs. It is displayed directly on the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
The trading rules that apply for the PTS MACD Divergence Box Indicator are very simple. There is a buying opportunity after the green box is provided. Conversely, there is a selling opportunity after the red box is provided. Detailed instructions can be found below.
Follow these steps for a long trade:
- PTS MACD Divergence Box plotts a green box
- Price leaves that box
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the last swing low of the market
- Take profit or exit whenever the PTS MACD Divergence Box draws red box, or R:R ratio reaches 2+:1, or use your own method of trade exit
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