MT4 Divergence Indicator (Scanner) is a technical analysis tool that automatically monitors specified assets and timeframes to identify divergence conditions across five oscillators: RSI, Stochastic, MACD, On Balance Volume (OBV), and Awesome Oscillator (AO).
Divergence occurs when an oscillator and price move in opposite directions — a condition that analysts use to evaluate potential shifts in trend momentum or structure, including both trend reversal and trend continuation after a pullback.
For example, a Stochastic forming lower highs while price forms higher highs registers a bearish divergence condition — reflecting a discrepancy between price movement and oscillator behavior:
The dashboard displays the most recent divergence conditions across the assets and timeframes you want to monitor — providing a structured overview at a glance. Clicking on any cell in the dashboard updates the chart to the corresponding instrument and timeframe directly.
The indicator registers bullish and bearish divergence conditions depending on the discrepancy identified between price and the selected oscillator. You can configure which oscillators to use for the scan — different analysts reference different oscillators depending on their analytical approach. The indicator supports RSI, Stochastic, MACD, OBV, and AO divergence detection simultaneously or independently.
Each identified divergence is displayed as a line connecting the relevant price and oscillator vertices, with a directional marker and a label showing which oscillator was used for detection.
Green directional markers indicate a bullish divergence condition. Red directional markers indicate a bearish divergence condition.
The label next to the marker shows the name of the oscillator on which the divergence was detected. Since divergences are identified using formed indicator vertices, the marker will appear 2 bars back. A formed vertex is defined as:
Indicator Limitations
Divergence detection is based on historical price and oscillator data. A registered divergence condition reflects a mathematical discrepancy between price movement and oscillator behavior — it does not predict future price movement and does not guarantee that a trend reversal or continuation will follow. Divergence conditions should be evaluated within a broader analytical framework that considers overall market structure and context.
The dashboard provides a structured overview of divergence conditions identified across the selected currency pairs and timeframes, organized by oscillator.
Each currency pair/timeframe cell contains several boxes — one for each oscillator — each showing the most recent divergence condition detected on that chart using that particular oscillator. The cell color indicates the directional context — bullish or bearish — with color saturation decreasing as the number of bars since the last detected condition increases. This allows you to prioritize charts where divergence conditions are most recent.
Clicking on any cell updates the chart to the corresponding instrument, timeframe, and oscillator.
The indicator parameters allow you to configure the monitored asset scope, calculation depth, and oscillator selection.
Assets and timeframes — select the currency pairs and timeframes to monitor.
max_bars — limits the number of bars included in calculations to improve indicator performance. Adjust this parameter if divergence detection far back in the historical data is not required.
Oscillator selection — configure which oscillators to use for divergence detection and set the related parameters for each oscillator independently.
We can customize this indicator to your requirements by adding new features, modifying calculation logic, or combining multiple tools into a unified solution.
We also develop automated trading strategies (Expert Advisors) based on custom logic. The system can include configurable management modules such as dynamic risk parameters, multi-stage trailing stops, additional confirmation filters, and other custom functionality based on your specifications.
The final solution is delivered with full source code and post-delivery support. Contact us for a free consultation to discuss the scope and timeline of your project.
We are committed to the ongoing development and refinement of our indicators. If you’ve spotted a bug, feel that something essential is missing, or have ideas that could make the indicator even better, just send us a message. Your feedback helps us improve and deliver tools that truly meet traders’ needs.
Nordman Algorithms is a trade name of Nordman Algorithms OÜ (Reg. No. 14435535), registered in Tallinn, Estonia.
Software Nature & User Responsibility — Nordman Algorithms provides algorithmic software tools for technical analysis. Nordman Algorithms is not a financial advisor and is not liable for any losses. All trades conducted based on the software’s output are executed at the user’s sole discretion and risk.
Visual Markers & Signal Disclosure — This software may display visual markers (such as arrows, dots, or alerts) when predefined mathematical conditions are met. These markers are provided for educational and analytical purposes only, must not be interpreted as financial guidance, and do not constitute a recommendation to buy, sell, or hold any financial instrument. Users must independently validate all visual cues within their own trading methodology.
No Financial Advice — Nordman Algorithms does not provide discretionary trading signals, investment advice, or managed signal services. Our software represents a mathematical visualization of historical and real-time data. The appearance of a visual marker does not guarantee a profitable trade or predict future market behavior.
Trading Risk Warning — Futures, Forex, and options trading involve significant risk. Risk capital is money that can be lost without jeopardizing financial security. Only risk capital should be used for trading. Past performance is not indicative of future results. View Full Risk Disclosure: https://www.nordman-algorithms.com/risk-disclosure/
ESMA Risk Warning — Financial instruments, especially those involving leverage such as CFDs and Forex, are complex and carry a high risk of rapid financial loss. Our software provides analytical outputs and visual markers based on predefined mathematical conditions and does not mitigate or reduce inherent market risks. You should carefully consider whether you understand how leveraged financial instruments work and whether you can afford the high risk of losing your capital.
CFTC Rule 4.41 — Hypothetical or simulated performance results have inherent limitations. Unlike actual performance records, simulated results do not represent real trading. Because trades have not actually been executed, these results may under- or over-compensate for the impact of market factors such as liquidity. No representation is being made that any account will achieve profits or losses similar to those shown.
