Divergence Indicator

For this project, we will be using the last MACD histogram to spot and draw divergences. 1) classic regular divergences you know when the price made lower low and the macd make higher low (bullish divergence) MACD divergence decisions is made from TWO HISTOGRAM NOT ONE. TWO COMPLETED HISTOGRAMS, means that the second histogram has to cross to zero MACD zero line before decisions are made. Two MACD histograms valleys in case of a bullish divergence, and two MACD histograms peaks in case of a bearish divergence. (PICTURE 1) On the vertical red line, the second MACD valley is completed by crossing the MACD zero line. Here the setup is completed and a blue line will be drawn on the chart showing the divergence location. (MACD indicator will not be shown on the chart, we are showing the MACD in our examples just for illustration and strategy explanation). Moreover, when a setup is completed, an arrow will be drawn on the chart, like in the example above. (PICTURE 2) When the price made higher high and the macd makes lower high. We have a bearish divergence. Just the opposite of the bullish divergence. Again, MACD divergence decisions is made from two histograms not one. NB: the two histograms has to be separated by only one opposite histogram, not more. 2) classic Hidden divergences Bullish hidden divergence, where price makes higher lows, and macd is making lower lows or double bottom (PICTURE 3) Bearish hidden divergence, where price makes lower highs, and macd is making higher highs. (PICTURE 4) 3) Divergence with double top/bottom MACD (PICTURE 5) Sometimes MACD makes equal highs or lows (whether it is hidden or regular). Same rules applies as above. 4) Long term divergence All the above are considered short term divergences having only one opposite histogram between the two histogram used to calculate the divergence. Long term histograms can have multiple MACD histograms between the two ones forming the divergence. (PICTURE 6) the same histogram can be used to spot divergences more than once. Here we have two long term divergences. (PICTURE 7) 5) Alert: The indicator will make Alerts when there is a divergence following this format: “Pair, Timeframe, Divergence type, short term/long term” for example: EURUSD M30 Regular Bullish Divergence – Short Term EURUSD M30 Hidden Bearish Divergence – Long term Settings: - Regular divergence color: in blue by default but the user can change it - Hidden divergence color: in red by default but the user can change it - Hidden Divergence: ON/OFF - Alert: ON/OFF - Long term Divergence: ON/OFF - Short term Divergence: ON/OFF All bullish arrows are in blue All bearish arrows are in red