Description

How Can the Candle Divergence DeMarker Indicator for MT5 Improve Your Trading Accuracy?

The Candle Divergence DeMarker Indicator for MetaTrader 5 is a powerful market analysis tool designed to detect divergence signals between price movement and the DeMarker oscillator, a lesser-known but highly effective momentum indicator. Divergences occur when price forms new highs or lows that are not confirmed by the oscillator, often signaling a potential reversal.

This indicator goes a step further by combining divergence detection with candlestick-level precision. When a divergence is confirmed, the tool places clear visual markers directly on the relevant candlestick, giving traders pinpoint entry signals. Whether it’s a bullish divergence during a downtrend or a bearish divergence in an uptrend, the indicator offers timely alerts and visual cues that help traders act quickly.

Ideal for scalping, day trading, or swing trading, this indicator works across all timeframes and asset classes, from forex to crypto, indices, and commodities. Its intelligent signal filtering reduces noise, improving accuracy and trade quality — all while running lightweight within the MT5 terminal.

Advantages:

• Identifies Hidden and Classic Divergences: Captures both regular and hidden divergence signals.
• Pinpoint Candle-Based Signals: Highlights the exact candle where divergence occurs.
• Improves Reversal Timing: Helps you catch trend reversals earlier with more confidence.
• Reduces False Signals: Uses advanced filtering logic to minimize market noise.
• Works on All Assets: Compatible with forex, stocks, crypto, and indices.
• Real-Time Alerts: Notifies you instantly when a divergence is detected.
• Non-Repainting Signals: Once confirmed, signals do not disappear or shift.
• Enhances Risk Management: Aligns entries with key turning points for better stop placement.
• Free to Download: Get premium-level divergence analysis without any cost.
• Improves Overall Technical Analysis: Adds a powerful layer of confirmation to your strategy.

Features:

• Integrated DeMarker Oscillator: Leverages the DeMarker indicator to analyze market momentum with precision.
• On-Candle Divergence Markers: Clear visual signals displayed directly on candlesticks for immediate identification.
• Bullish & Bearish Divergence Labels: Instantly differentiate between bullish and bearish signals using intuitive labeling.
• Adjustable Sensitivity Settings: Fine-tune divergence detection to match your personal trading strategy.
• Real-Time Alerts: Receive sound and popup notifications as soon as new divergence signals are detected.
• Multi-Timeframe Compatibility: Seamlessly operates across all timeframes, from M1 to MN.
• Custom Visual Settings: Tailor arrow colors, label styles, and visual elements to suit your chart preferences.
• Lightweight & Efficient: Engineered for minimal CPU usage, ensuring smooth performance on any system.
• Divergence Signal History: Access a full record of past signals for effective backtesting and analysis.
• Intuitive User Interface: Clean, easy-to-navigate settings menu designed for traders of all experience levels.

Formula

The formula for DeMarker Indicator is:

Calculating DeMax (i).

If HIGH (i) > HIGH (i – 1), DeMax (i) = HIGH (i) – HIGH (i – 1), otherwise DeMax (i) = 0.

Calculating DeMin (i).

If LOW (i) < LOW (i – 1), DeMin (i) = LOW (i – 1) – LOW (i), otherwise DeMin (i) = 0.

Calculating value of the DeMarker – DMark (i):

DMark (i) = SMA (DeMax, N) / (SMA (DeMax, N) + SMA (DeMin, N)).

Where: HIGH (i) – the highest price of the current bar;
LOW (i) – the lowest price of the current bar;
HIGH (i – 1) – the highest price of the previous bar;
LOW (i – 1) – the lowest price the previous bar;
SMA – simple moving average;
N – number of periods used for the calculation.

How to Trade

Start by adding the Candle Divergence DeMarker indicator to your chart and select a trending market (forex, crypto, or indices). When price makes a new high but the DeMarker fails to confirm, a bearish divergence marker will appear on the candlestick — this is your early warning of a possible reversal. Enter a short trade after the divergence candle closes, confirming momentum is fading. Place your stop loss just above the recent swing high for protection. Target the next key support zone or use a 1:2 risk-to-reward ratio to secure profits.

For bullish divergence, wait for price to form a lower low while the DeMarker shows a higher low, highlighted directly on the candlestick. Enter a long trade at the close of the divergence candle, signaling buyers are stepping in. Place your stop loss just below the swing low to manage risk effectively. Ride the move toward the next resistance or trendline, scaling out if needed. This approach works best when combined with support/resistance or moving averages for extra confirmation.

Conclusion

The Candle Divergence DeMarker for MetaTrader 5 offers traders a unique edge by combining precise candlestick marking with reliable momentum divergence analysis. By detecting both hidden and regular divergences directly on the chart, it equips traders with accurate reversal signals, real-time alerts, and visual clarity all without repainting. It’s lightweight, customizable, and works across all assets and timeframes. Whether you’re looking to time your reversals better, reduce entry hesitation, or simply refine your strategy, this free indicator is a must-have addition to any MT5 trader’s toolkit.

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