Market Cap:
$247.7B
BTC Dominance:
56.55%
btc:
$7891.00
eth:
$252.50
xrp:
$0.39
Advertise

Hidden Divergence Forex Trading Strategy

Amandeep Sonewane | May. 10, 2019
Hidden Divergence Forex Trading Strategy

You can now download the Hidden Divergence Forex Trading Strategy for free on AtoZ Markets indicators gallery.

Divergence trading is a well-established method of trading the forex markets or any type of trading market for that matter. Yet, despite its proven track record, it is also one of the most overlooked. Most beginning traders often gravitate to other trading methods but divergences. This MT4 template comes with an inbuilt RVI indicator. The RVI or Relative Vigor Index is also an overlooked technical indicator. It is often less popular compared to its the MACD and the Stochastic Oscillator. The RVI is basically an oscillator derived from the open and close of the candles, which in theory should indicate if the price is opening and closing higher than previous candles or if it the reverse.

There are a few notable features of the RVI. One is that it has two oscillating lines, much like the stochastic oscillator. This could already be a signal based on the crossovers of the two lines.

Timeframe: any but preferably 1-hour charts and above

Currency Pair: any

Session: any

How to trade with Hidden Divergence Forex Trading Strategy?

Buy (Long) Trade Setup

Entry

  • Price should be above the 200 EMA (brown)
  • The RVI lines should be below the zero midline
  • A hidden bullish divergence should be identifiable
  • The fast RVI line (green) should cross above the slow RVI line (red)
  • Enter a buy market order on the confluence of these rules

Stop Loss

  • Set the stop loss at the swing low below the entry candle

Take Profit

  • Set the target take profit at 2x the risk on the stop loss

Sell (Short) Trade Setup

Entry

  • Price should be below the 200 EMA (brown)
  • The RVI lines should be above the zero midline
  • A hidden bearish divergence should be identifiable
  • The fast RVI line (green) should cross below the slow RVI line (red)
  • Enter a sell market order on the confluence of these rules

Stop Loss

  • Set the stop loss at the swing high above the entry candle

Take Profit

  • Set the target take profit at 2x the risk on the stop loss

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “Hidden Divergence Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.