The Elliott Wave Oscillator (EWO) Divergence Indicator for MetaTrader 4 is a specialized tool designed to detect divergence patterns between Price Action and oscillator momentum, providing early warnings of potential trend reversals or continuations. By integrating Elliott Wave analysis with divergence detection, it offers traders enhanced insights into market dynamics and helps improve trade timing across forex, stocks, commodities, and indices.
This indicator is especially useful for traders who rely on momentum shifts, Elliott Wave setups, or high-probability reversal strategies.
How the Indicator Works
The Elliott Wave Oscillator Divergence Indicator identifies two key types of divergence:
- Regular Divergence – Signals potential reversals:
- Bearish Regular Divergence: Price makes a higher high while the oscillator forms a lower high.
- Bullish Regular Divergence: Price forms a lower low, but the oscillator makes a higher low.
- Hidden Divergence – Signals trend continuation:
- Bearish Hidden Divergence: Price makes a lower high, oscillator forms a higher high.
- Bullish Hidden Divergence: Price makes a higher low, oscillator forms a lower low.
Divergences are marked visually on the chart with color-coded lines and arrows, allowing traders to quickly spot high-probability setups.
Trading Signals
- Buy Signal – Triggered by bullish divergence (regular or hidden) indicating upward momentum may resume.
- Sell Signal – Triggered by bearish divergence (regular or hidden) suggesting downward continuation or reversal.
- Visual Cues – Lines connect the relevant price points to the oscillator peaks/troughs, making divergence patterns easy to interpret.
By using divergence signals alongside Elliott Wave counts, traders can enhance accuracy and reduce false entries.
Key Benefits
- Detects both regular and hidden divergences
- Integrates seamlessly with Elliott Wave analysis
- Provides early warnings of reversals and trend continuations
- Color-coded visual signals simplify pattern recognition
- Customizable settings for sensitivity and alerts
Conclusion
The Elliott Wave Oscillator Divergence Indicator for MT4 is an essential tool for traders seeking to spot high-probability reversals and continuation setups. By combining momentum divergence with Elliott Wave principles, it enhances technical analysis, improves timing, and supports more informed trading decisions.
Whether you trade short-term or swing strategies, this indicator helps you anticipate market moves with confidence and precision.
