Forex Eyes Divegence Strategy
Following the global trend allows the trader to always stay afloat and be content with little, since, as a rule, it is possible to determine the trend only at the very end of the trend.
Millions of traders were able to make money just by following the crowd, but only those who predicted the reversal and entered the trade first became truly rich.
Finding turning points in Forex is the most dangerous and at the same time the most profitable business, since by opening a position before the start of a new trend, you do not always guess the entry time.
The Forex Eyes Divegence strategy is a special indicator strategy that incorporates two reversal indicators
Namely, a forecasting eye for Forex and the divergence of the MACD indicator.
Installing Forex Eyes Divegence strategy indicators
The Forex Eyes Divegence strategy contains two indicators and if MACD indicator is a custom tool and is installed in MT4 by default, the Forex Eyes indicator is a self-developed indicator that should be downloaded at the end of the article and installed.
The strategy installation process follows the standard scheme, namely, you will need to reset the indicator and template to the appropriate folders in the terminal data directory.
To access the directory, launch your platform and open the file menu in the upper left corner. You will see a menu with a list of options, among which you will find the line “data directory” and open it.
After launching the directory on the monitor screen, you will be able to see a number of system folders, among which find the pack called indicators and drop the Forex Eyes indicator into it, and also find the folder called Template and drop the template into it.
For the terminal to see the installed files, simply restart the platform. To launch the strategy, call the additional menu on the chart and find the “Forex Eyes Divegence” strategy in the list of templates. After running the template you will get this graph:
Briefly about the Forex Eyes strategy. Signals
The Forex Eyes Divegence strategy is based on the most popular predictive market signal - divergence.
It is worth recalling that divergence is the discrepancy between the indicator readings and the price, and in our case, between the peaks of the MACD histogram and the price.
This is expressed as follows, namely, the peak of the histogram may be lower than the previous one, while the price has updated its maximum and vice versa.
There is the concept of bullish divergence, which appears on a downtrend and predicts a reversal towards a bullish market, as well as bearish divergence, which predicts a reversal of an uptrend into a bearish one.
So, having become familiar with the concept of divergence, you can proceed directly to signals.
Buy signal:
1) The Forex Eyes indicator beam is directed downwards.
2) The Forex Eyes indicator draws a yellow dot.
3) There is a bullish MACD divergence on the chart.
The stop order should be placed either at the local minimum or at the minimum of the signal candle. Profit should be 2-3 times the stop order in points. Example:
Sell signal:
1) The Forex Eyes indicator beam is directed upward.
2) The Forex Eyes indicator draws a yellow dot.
3) There is a bearish MACD divergence on the chart.
The stop order should be placed either at the local maximum or at the maximum of the signal candle. Profit should be 2-3 times the stop order in points. Example:
In conclusion, it is worth noting that the Forex Eyes Divegence strategy is primarily designed for more experienced market participants who are already familiar with the concept of divergence and have little experience in applying divergences in practice.
It is also worth adding that signals appear extremely rarely, so this strategy is suitable for busy people who cannot devote all their time to the market.
Download the indicator for the Forex Eyes strategy