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- PAFX Secret Indicator for MetaTrader 4 Download - Free - [TFlab]
PAFX Secret Indicator for MetaTrader 4 Download - Free - [TFlab]
The PAFX Secret Indicator for the MetaTrader 4 platform is designed to identify market trends and divergences. Combining six popular oscillators, including MOMENTUM, CCI, RSI, Stoch, MACD, and AO, helps detect chart divergences effectively.
Indicator Table
CategoryTrading Tools | Tools - Oscillator - Price Action |
Platform | MetaTrader 4 |
Skill Level | Intermediate |
Indicator Type | Trend-Following - Reversal |
Timeframe | Multi-timeframe |
Trading Style | Intraday Trading |
Trading Market | Cryptocurrency - Forex - Stocks |
Bullish Trend Example
Two positive divergences have formed on the daily chart of the CAD/JPY currency pair. In this case, the new price low is lower than the previous one, but on the indicator, the new low is higher than the previous one. Traders can enter a buy trade after receiving final confirmations based on their trading strategy.
Bearish Trend Example
A negative divergence is observed on the 4-hour chart of the GBP/JPY currency pair. Following this divergence, the price formed a new high lower than the previous high, while on the indicator, the new high is higher than the previous high.
This scenario may indicate a weakness in the bullish trend, and traders might consider this a potential sell signal, depending on their strategies.
Indicator Settings
- Chart Theme: Background color of the chart;
- Indicator: Type of indicator, including MOMENTUM, CCI, RSI, and MACD (default: RSI);
- RSI Period: Calculation period for RSI (default: 14);
- CCI Period: Calculation period for CCI (default: 14);
- MACD Fast Ma: Fast MA calculation for MACD (default: 12);
- MACD Slow Ma: Slow MA calculation for MACD (default: 26);
- MACD Signal: Number of MACD signals (default: 9);
- Stoch K: Stochastic K parameter (default: 5);
- Stoch D: Stochastic D parameter (default: 5);
- Stoch Slowing: Stochastic slowing parameter (default: 3);
- Momentum Period: Calculation period for Momentum (default: 14);
- Div Type: Divergence display type (default: Regular);
- Div Min: Minimum number of candles for divergence calculation (default: 5);
- Div Max: Maximum number of candles for divergence calculation (default: 100);
- Line Width: Width of divergence lines (default: 2);
- Line Style: Divergence line style (default: Solid);
- Alert: Alerts when a divergence is detected;
- Alert Sound: Type of sound for alerts;
- Alert Mail: Email notification when divergence occurs;
- Lookback: Number of candles calculated in the indicator window.
Conclusion
Divergences play a crucial role in technical analysis, enabling traders to identify potential trend reversals. A positive divergence occurs when the price moves downward, yet the indicator signals an upward trend, suggesting a possible shift in momentum.
Conversely, a negative divergence happens when the price rises, but the indicator trends downward, indicating a weakening of the current upward trend and a potential reversal. These signals provide valuable insights for traders to anticipate market changes effectively.
What is the PAFX Secret Indicator, and what is it used for?
The PAFX Secret Indicator is designed for the MetaTrader 4 platform, combining well-known indicators like Momentum, CCI, RSI, and MACD. Its main goal is to identify divergences and assist traders in detecting potential trend changes.
How are divergences displayed in this indicator?
Positive divergences are displayed in red, and negative divergences are shown in blue, making it easier for traders to identify buy and sell signals.