RSI Divergence Trading System in MQL5

Introduction

Imagine pinpointing market reversals with the precision of a seasoned chart analyst, using the subtle interplay of price and momentum to guide your trading decisions. The RSI Divergence Indicator EA is your advanced divergence detection tool, designed to automate trading by leveraging a custom RSI Divergence Indicator ("handle_RSI_DIV", "iCustom()") to identify trend reversals. A bullish divergence signal (value=1, "signal_Buy_Sell[0]=1")—indicating lower price lows but higher RSI lows—triggers a 0.01-lot buy trade ("obj_Trade.Buy()") with a 300-pip take profit ("Bid+300*_Point") and no stop loss. A bearish divergence (value=-1, "signal_Buy_Sell[0]=-1")—higher price highs with lower RSI highs—prompts a sell trade ("obj_Trade.Sell()") with similar parameters. Trades are limited to one per new bar ("prevBars", "iBars()") to avoid overtrading, with no magic number for position tracking. This strategy suits traders targeting momentum-driven reversals, requiring robust risk management due to the absence of stop losses and reliance on a custom indicator.

This article is crafted with a professional, engaging, and seamless narrative, flowing like a well-calibrated divergence detection system, designed to inform and captivate readers. Tailored for both novice and experienced traders, we’ll dissect each code component with clear, precise explanations, as if guiding an apprentice analyst through a reversal-trading project. With vivid examples—like trading EURUSD—and a polished tone, we’ll explore how the EA initializes, detects signals, executes trades, and ensures cleanup. Using a precision divergence detection metaphor, this guide will illuminate the code’s technical rigor, empowering you to capture market shifts with confidence. Let’s activate the system and begin this trading expedition!

Strategy Blueprint

Let’s outline the EA’s divergence framework, like drafting specifications for a reversal detection system:

• Indicator Setup: Initializes a custom RSI Divergence Indicator ("iCustom()", "handle_RSI_DIV") to detect bullish/bearish divergences.

• Signal Detection: Triggers a buy when the indicator signals bullish divergence ("signal_Buy_Sell[0]=1") or a sell for bearish divergence ("signal_Buy_Sell[0]=-1") using "CopyBuffer()".

• Trade Execution: Opens 0.01-lot buy/sell trades ("obj_Trade.Buy()", "obj_Trade.Sell()") with 300-pip take profits ("Bid+300*_Point", "Ask-300*_Point") and no stop losses.

• Trade Limitation: Restricts trades to one per new bar ("iBars()", "prevBars") to prevent overtrading.

• Execution: Processes signals on each tick ("OnTick()") with price data from "SymbolInfoDouble()".

• Enhancements: Adding stop losses, magic numbers, or signal confirmation filters could improve risk control and reliability. This framework automates divergence trading with precision, leveraging RSI signals for targeted reversals.

Code Implementation

Let’s step into the divergence detection control room and dissect the MQL5 code that powers this RSI Divergence Indicator EA. We’ll guide you through each phase like expert analysts, ensuring the narrative flows seamlessly with professional clarity and engaging precision that captivates readers. We’ll cover initialization, signal detection, trade execution, and cleanup, with detailed explanations and examples—like trading EURUSD—to make it accessible for beginners. Each phase will build on the last, crafting a cohesive technical narrative that transforms code into a compelling reversal-trading project. Let’s power up the system and begin!

Phase 1: Constructing the Framework—Initialization

We start by building the trading system, initializing the custom RSI Divergence Indicator.

//+------------------------------------------------------------------+
//|                                        RSI DIVERGENCE IND EA.mq5 |
//|                           Copyright 2025, Allan Munene Mutiiria. |
//|                                   https://t.me/Forex_Algo_Trader |
//+------------------------------------------------------------------+
#property copyright "Copyright 2025, Allan Munene Mutiiria."
#property link      "https://t.me/Forex_Algo_Trader"
#property version   "1.00"

#include <Trade/Trade.mqh>
CTrade obj_Trade;

int handle_RSI_DIV = INVALID_HANDLE;
double signal_Buy_Sell[];

int OnInit(){
   handle_RSI_DIV = iCustom(_Symbol,_Period,"Market//RSI Divergence Indicator MT5");
   Print("IND HANDLE = ",handle_RSI_DIV);
   if (handle_RSI_DIV == INVALID_HANDLE){
      Print("UNABLE TO INITIALIZE THE IND CORRECTLY. REVERTING NOW!");
      return (INIT_FAILED);
   }
   ArraySetAsSeries(signal_Buy_Sell,true);
   return(INIT_SUCCEEDED);
}

The system begins with the #property header, establishing copyright and contact details, like calibrating a divergence detection system’s core. The "OnInit()" function initializes the setup, including "Trade/Trade.mqh" for trading via "obj_Trade". It creates a handle for the custom RSI Divergence Indicator ("handle_RSI_DIV", "iCustom()", path "Market//RSI Divergence Indicator MT5"), logging the handle ID with "Print()". If the handle fails ("INVALID_HANDLE"), it logs an error and returns "INIT_FAILED". The signal array ("signal_Buy_Sell") is set as a time series ("ArraySetAsSeries()") for data storage. Returning INIT_SUCCEEDED signals, “System is ready, let’s detect divergences!” This primes the EA for RSI-based trading, like a detection tool poised for action.

Phase 2: Mapping Divergence Signals—Loading Indicator Data

With the system active, we load divergence signals from the custom indicator, like scanning for momentum-price mismatches.

void OnTick(){
   if (CopyBuffer(handle_RSI_DIV,1,0,1,signal_Buy_Sell) < 1){
      Print("UNABLE TO GET ENOUGH REQUESTED DATA FOR BUY/SELL SIG'. REVERTING.");
      return;
   }
   double Ask = NormalizeDouble(SymbolInfoDouble(_Symbol,SYMBOL_ASK),_Digits);
   double Bid = NormalizeDouble(SymbolInfoDouble(_Symbol,SYMBOL_BID),_Digits);
   int currBars = iBars(_Symbol,_Period);
   static int prevBars = currBars;
   if (prevBars == currBars) return;
   prevBars = currBars;

In the signal mapping hub, "OnTick()" runs every tick, loading the latest signal from the indicator’s buffer 1 ("CopyBuffer()", "signal_Buy_Sell", 1 bar). If insufficient data is retrieved ("< 1"), it logs with "Print()" and exits. It fetches ask and bid prices ("Ask", "Bid", "SymbolInfoDouble()", "NormalizeDouble()") and checks for new bars ("iBars()", "currBars", "prevBars") to limit trades to one per bar. For example, on EURUSD H1, it loads a signal value (e.g., 1 for bullish divergence), preparing for trade execution, like detecting a reversal cue.

Phase 3: Navigating Trades—Executing Divergence Signals

With signals detected, we execute trades based on divergence indicators, like capitalizing on momentum shifts.

void OnTick(){
   // ... (data loading)
   if (signal_Buy_Sell[0] == 1){
      Print("BUY SIGNAL = ",signal_Buy_Sell[0]);
      obj_Trade.Buy(0.01,_Symbol,Ask,0,Bid+300*_Point);
   }
   else if (signal_Buy_Sell[0] == -1){
      Print("SELL SIGNAL = ",signal_Buy_Sell[0]);
      obj_Trade.Sell(0.01,_Symbol,Bid,0,Ask-300*_Point);
   }
}

In the trade navigation hub, "OnTick()" checks "signal_Buy_Sell[0]". A bullish divergence ("=1") triggers a 0.01-lot buy ("obj_Trade.Buy()") at ask ("Ask") with no stop loss ("0") and a 300-pip take profit ("Bid+300*_Point"), logging with "Print()". A bearish divergence ("=-1") opens a sell ("obj_Trade.Sell()") at bid ("Bid") with no stop loss and a 300-pip take profit ("Ask-300*_Point"). For example, on EURUSD H1, a bullish divergence signal at ask=1.2007 opens a buy with take profit at 1.2307, like locking onto a reversal opportunity.

Phase 4: Shutting Down the System—Cleaning Up Resources

As our expedition concludes, we shut down the system, ensuring resources are cleared.

void OnDeinit(const int reason){
}

In the shutdown control room, "OnDeinit()" is empty, leaving the indicator handle active, like a running detection system. Adding cleanup would ensure a clean slate:

IndicatorRelease(handle_RSI_DIV);
ArrayFree(signal_Buy_Sell);

This would release the indicator handle ("IndicatorRelease()", "handle_RSI_DIV") and free the signal array ("ArrayFree()", "signal_Buy_Sell"), like dismantling a divergence detection system, ready for the next task.

Why This EA is a Divergence Detection Triumph

The RSI Divergence Indicator EA is a reversal-trading triumph, automating trades with precision, like a master-crafted detection engine. Its reliance on a custom RSI Divergence Indicator ("iCustom()", "signal_Buy_Sell") and disciplined trade limits ("prevBars") offer clarity, with potential for stop losses or magic numbers. Picture a buy on EURUSD at 1.2007 with a 1.2307 take profit—strategic brilliance! Beginners will value the clear signals, while experts can refine its high-risk framework, making it essential for divergence traders.

Putting It All Together

To deploy this EA:

1. Ensure the “RSI Divergence Indicator MT5” is installed in the MetaTrader 5 “Market” folder.

2. Open MetaEditor in MetaTrader 5, like entering your divergence detection control room.

3. Copy the code, compile with F5, and verify no errors—no analyst wants a faulty system!

4. Attach the EA to your chart, enable AutoTrading, and watch it execute divergence-based trades.

5. Monitor logs (e.g., “BUY SIGNAL = 1”) for signal tracking, like detection diagnostics.

6. Test on a demo account first—real capital deserves a trial run!

Conclusion

We’ve engineered an RSI Divergence Trader that automates reversal trading with precision, like a master-crafted detection system. This MQL5 code is your strategic tool, brought to life with a seamless, professional narrative packed with clear explanations and vivid examples to fuel your trading ambition. Whether you’re a novice chart analyst or a seasoned market strategist, this EA empowers you to capture reversals with confidence. Ready to trade? Watch our video guide on the website for a step-by-step creation process. Now, detect your trading opportunities with precision! 🔍

Disclaimer: Trading is like navigating complex markets—challenging and risky. Losses can exceed deposits. Test strategies on a demo account before going live.