AO Divergence Indicator MT4 is a tool that helps you detect divergences compared to the standard Awesome Oscillator. It will alert you and draw arrows whenever the price and the Awesome Oscillator histogram show a divergence.
AO Divergence Indicator – Features and Usage
You can think of the AO Divergence Indicator as an upgraded version of the AO (Awesome Oscillator).
(The Awesome Oscillator is a default indicator available in the MT4 trading platform.)
Let’s take a look at how this indicator is displayed on the trading platform:
After successful installation, the AO Divergence Indicator will appear in a separate sub-window. The indicator can be used in several ways:
1. Based on the histogram bars in the sub-window
The vertical bars show whether the market is moving up or down:
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Red bars: Indicate that the market is moving down
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Green bars: Indicate that the market is moving up
The height of the bars also reflects price momentum:
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Taller bars = stronger momentum (price moves faster)
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Shorter bars = weaker momentum (price moves slower)
Additionally, when the bars switch from green to red, it may signal that the price wants to reverse downward. Conversely, a shift from red to green may suggest a potential upward move.
2. Based on histogram divergence with price
This is the main function of the indicator. When a divergence appears between the histogram bars and price action, the indicator will draw an arrow. You can look for trade opportunities in the direction of that arrow.
Installing the Indicator
The installation is the same as for any other custom indicator. To make it work properly, you need to check the “Allow DLL imports” option, as shown below:
