PZ Divergence Lite Indicator MT5

 Let’s delve into the valuable details about the PZ Divergence Lite Indicator for MT5. This indicator is a powerful tool for identifying both regular and hidden divergences in price charts. Below, I’ve organized the information you requested in a structured format:

Overview

• The PZ Divergence Lite Indicator is designed to spot divergences, which are reliable trading scenarios.
• Divergences occur when the price movement diverges from the direction of an oscillator (such as RSI or MACD), indicating potential trend reversals or continuation patterns.

Key Features

• Regular and Hidden Divergences: The indicator identifies both regular (visible) and hidden (more subtle) divergences.
• Visual Alerts: It displays bullish divergences in blue and bearish divergences in red on your price chart.
• Alerts: Receive alerts via email and push notifications when divergences are detected.

Strategy

• Divergence Trading Strategy:
  • Bullish Divergence:
    • Scenario: Price makes lower lows, but the oscillator (e.g., RSI) forms higher lows.
    • Signal: Anticipate a potential upward reversal in price.
    • Action: Consider going long (buy) in the market.
  • Bearish Divergence:
    • Scenario: Price creates higher highs, but the oscillator forms lower highs.
    • Signal: Expect a possible downward reversal in price.
    • Action: Contemplate going short (sell) in the market.

Minimum Deposit

• There is no specific minimum deposit requirement for using the PZ Divergence Lite Indicator. However, it’s advisable to allocate sufficient capital to comfortably manage your trades.

Recommended Timeframes

• The indicator performs well on the following timeframes:
  • H1 (1-hour chart)
  • H4 (4-hour chart)

Currency Pair Recommendation

• The GBPUSD (British Pound/US Dollar) currency pair is suitable for trading with this indicator. However, you can also explore other major currency pairs.