Knoxville Divergence Indicator MT4 Download – Free – [TradingFinder]

The Knoxville Divergence Indicator is designed by combining two indicators: the Relative Strength Index (RSI) and the Momentum. By analyzing divergences between price movement and momentum, this indicator issues signals indicating the weakening of the current trend and the possibility of its reversal.

Knoxville Divergence Detection Indicator Specifications Table

The table below displays the features of the Knoxville Divergence Detection Indicator:

Knoxville Divergence Detection Indicator at a Glance

The Knoxville Divergence Indicator identifies existing divergences by analyzing momentum and plots them on the chart using colored lines.

These lines include:

• Green line: Indicates the presence of a positive divergence and is drawn below the candles;
• Red line: Appears in case of a negative divergence and is drawn above the candles.

Positive Divergence

According to the AUD/USD one-hour chart, the indicator detects the divergence between price and momentum and highlights it on the chart.

In this situation, traders may choose to enter buy trades depending on their personal strategy.

Negative Divergence

Based on the Bitcoin (BTC) chart, the Knoxville Divergence Indicator identifies a negative divergence after analyzing price action relative to momentum. As shown in the chart, the price declined following the divergence detection.

Knoxville Divergence Indicator Settings

The settings of the Knoxville Divergence Detection Indicator are as shown below:

• LookbackCandles: Number of candles analyzed for divergence
• MomentumPeriod: Momentum calculation period
• MomentumPrice: Price for momentum calculation
• RSIPeriod: RSI calculation period
• RSIPrice: Price for RSI calculation
• RSIBearLimit: Overbought threshold
• RSIBullLimit: Oversold threshold

Conclusion

The Knoxville Divergence Detection Indicator, by combining the "RSI" and Momentum, identifies divergences between price and market strength.
These divergences appear on the chart as green lines for bullish signals and red lines for bearish signals. The main purpose of this indicator is to provide early warnings for potential trend reversal zones.