PAFX Secret Indicator for MetaTrader 5 Download - Free - [TFlab]

The PAFX Secret Indicator is one of the popular technical analysis tools among MetaTrader 5 indicators, helping traders identify potential trend reversal points.

This indicator is a combination of six well-known indicators, including Momentum, CCI, RSI, Stochastic, MACD, and AO, specifically designed to display divergences on the chart. By using this indicator, traders can detect potential trend changes with greater accuracy.

Indicator Table

Indicator Overview

Divergence is one of the most fascinating and widely used concepts in technical analysis, helping traders predict potential price trend changes. Simply put, divergence occurs when the price and indicator behaviors are not aligned.

This discrepancy can signal a weakness in the current trend and alert traders to a possible price direction change.

Bullish Trend Example

A positive divergence is observed on the daily chart of the CHF/JPY currency pair. While the price of this pair appears to continue its downtrend, the indicator shows the opposite, recording a higher high.

This signal highlights a weakness in the downtrend, indicating a potential start of an upward movement.

Bearish Trend Example

A negative divergence is observed on the 30-minute chart of the EUR/USD currency pair. The price records new highs, but the indicator moves in the opposite direction, showing lower highs.

This discrepancy between price and indicator movement may weaken the bullish trend’s strength.

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

In this MetaTrader 5 oscillator, divergences help traders make better and more precise decisions by highlighting potential trend reversal points. These signals allow traders to enter buy (Buy) or sell (Sell) positions at the right time and profit from price movements.

For this reason, divergences are considered one of the most useful elements in technical analysis and are widely used in financial markets.