Divergence enables the trader to detect and respond to changes in price action. It alerts us to a change in circumstances and requires the trader to take action, such as tightening the stop-loss or taking profits. Profitability is increased by divergence since it warns the trader to preserve gains.
In this guide, we’ll introduce you to the Wildhog NRP Divergence Indicator, an automatic divergence setup detector especially developed for MT4 platforms.
What is the Wildhog NRP Divergence Indicator?
The Wildhog NRP Divergence indicator helps traders locate and analyze price divergences on a currency pair’s price chart. The indicator also provides suggestions for entering the market and displays oversold and overbought levels. This indicator’s inability to repaint its values is another plus.
The Wildhog NRP Divergence indicator detects bullish and bearish divergences, displays them on price charts, and sends signals with pop-up alerts. It will also sound an alarm and even email you a note.
To prevent erroneous market entrances, the Wildhog NRP Divergence indicator should be applied in conjunction with filtering indicators. Additionally, I recommend utilizing this indicator on higher timeframes (H1 to daily) when divergences are easier to spot, and you will receive fewer false signals.
Wildhog NRP Divergence Trading Strategy
The Wildhog NRP Divergence Indicator closely tracks recent market highs and lows and compares them with the changes in the indicator value. When the price moves opposite the Wildhog line, the indicator signals a possible divergence.
The indicator will show a green arrow below the signal line to confirm a bullish divergence. Contrarily, a blue arrow will indicate a bearish divergence. This tool also plots automatic trendlines to understand the divergence setup better.
Since divergence is a trend reversal trading strategy, traders should seek more confirmation of the current market momentum while considering an entry following a divergence signal.
Here are the buy conditions of the Wildhog NRP Divergence indicator:
- Price plots a lower high.
- The Wildhog NRP Divergence Indicator prints a higher high.
- A green arrow in the indicator window points to a bullish divergence.
- Enter buy at the bullish breakout of the divergence trendline.
- Stop loss below current support.
- Take profit on bearish trend reversals.
Here are the sell conditions of the Wildhog NRP Divergence indicator:
- Price plots a higher high.
- The Wildhog NRP Divergence Indicator prints a lower high.
- A blue arrow in the indicator window points to a bearish divergence.
- Enter sell at the bearish breakout of the divergence trendline.
- Stop loss above current resistance.
- Take profit on bullish trend reversals.
Wildhog NRP Divergence Indicator Pros & Cons
- Generates a simple demonstration of critical divergence signals.
- Separately indicates bullish/bearish divergences.
- Draws automatic trendlines.
- Suits trend reversal and swing trading strategies.
- Applicable to multi-timeframes.
- Ideal for forex, stocks, and crypto trading.
- The divergence signals may not work during low liquidity periods of the market.
- Divergence doesn’t guarantee a long-term trend reversal.
Technical indicators can somewhat deviate from the actual price movement of a forex pair under analysis in the currency market. These discrepancies are typically quite valuable to technical analysts, and the Wildhog NRP Divergence has been developed based on this straightforward concept. Look for potential divergence signals near solid support/resistance zones to enhance your winning probability.
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