Knoxville Divergence Indicator MetaTrader4 (MT4) – Free [TFlab]

The Knoxville Divergence Indicator is a sophisticated technical analysis instrument engineered to synthesize data from two primary oscillators: the Relative Strength Index (RSI) and Momentum.
By rigorously scrutinizing discrepancies between price action and momentum velocity, this tool generates high-probability signals denoting trend exhaustion and potential market reversals. Unlike standard trend-following tools, this indicator focuses specifically on the weakening of the prevailing trend.

You can download it from this link:

https://cdn.tradingfinder.com/file/5...4-by-tflab.zip

You can also access the MetaTrader 5 version of this Indicator through this page:

https://www.cryptocraft.com/thread/1...der-5-mt5-free

For instructions on how to install:

https://www.forexfactory.com/thread/...-in-metatrader

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Knoxville Divergence Detection Indicator Specifications
The following list outlines the technical characteristics, compatibility, and functional features of the Knoxville Divergence Detection Indicator:

1. Indicator Categories: Signal & Forecast, Trading Assist, and Momentum Indicators for MT4.

1. Platform Compatibility: MetaTrader 4 (MT4).

1. Required Skill Level: Intermediate.

1. Indicator Classification: Reversal Indicators.

1. Timeframe Capability: Multi-Timeframe functionality.

1. Trading Styles: Day Trading, Scalping, and Swing Trading strategies.

1. Tradable Instruments: Stock Market, Cryptocurrency, and Forex pairs.

Knoxville Divergence Detection Indicator at a Glance
The primary function of the Knoxville Divergence Indicator is the identification of latent divergences through momentum analysis. It visualizes these market conditions directly on the price chart using distinct color-coded trendlines.

These visual cues are defined as follows:

1. Green Line: Signifies the presence of a positive divergence and is plotted beneath the candlestick formation.

1. Red Line: Denotes the presence of a negative divergence and is plotted above the candlestick formation.

Positive Divergence
An analysis of the AUD/USD 1-hour chart demonstrates the indicator's capability to detect discrepancies between price trajectory and momentum. The indicator highlights this divergence on the chart.
In this specific market condition, traders may evaluate potential entry points for buy trades, contingent upon their individual risk management strategies.

1. Uptrend Analysis: Utilizing the Knoxville Divergence Detection Indicator to confirm bullish reversals.

1. Visualization: Plotting positive divergences on the chart.

Negative Divergence
Examination of the Bitcoin (BTC) chart illustrates the identification of negative divergence. The Knoxville Divergence Indicator analyzes price action relative to momentum to flag this condition. As evidenced in the historical data, price depreciation frequently ensues following this specific detection.

1. Downtrend Analysis: Utilizing the Knoxville Divergence Indicator to assess bearish reversals.

1. Visualization: Detecting and plotting negative divergences on the chart.

Knoxville Divergence Indicator Settings
To customize the sensitivity and logic of the indicator, the Knoxville Divergence Detection Indicator offers the following adjustable parameters:

1. LookbackCandles: Defines the quantity of historical candles analyzed for divergence.

1. MomentumPeriod: Sets the time period for the Momentum calculation.

1. MomentumPrice: Specifies the price type used for the Momentum calculation.

1. RSIPeriod: Sets the time period for the RSI calculation.

1. RSIPrice: Specifies the price type used for the RSI calculation.

1. RSIBearLimit: Defines the threshold for overbought conditions.

1. RSIBullLimit: Defines the threshold for oversold conditions.

Conclusion
The Knoxville Divergence Detection Indicator, by integrating RSI and Momentum metrics, effectively isolates disparities between asset price and underlying market strength.
These divergences are visually represented as green lines for bullish scenarios and red lines for bearish setups. The primary objective of this trading tool is to serve as an early warning mechanism, assisting traders in identifying critical trend reversal zones before price action fully commits to a new direction.