Someone asked me for a Eur/usd Gbp/Usd overlay chart so here it is
OverLayChart.zip (9.92 KB)
Thank You 
I dont know why but i can’t get this indicator to work. In fact I have tried like 3 or 4 different overlay indicators and none of them are working??? I think my mt4 may be broken but what a pain in the ass to reinstall it.
Check the symbol name in the code…is it spelled the same way as your broker spells it?
I didn’t think of that. I use IBFX demo and it works there. but it could be a difference in the broker you use.
I use IBFX too, but a mini account so all my currency symbols have a lowercase m tacked on the end…
like I said sweet Pip u r a genius!!! Now if I can only learn how to read the divergence. lol!!!
Johnny, I myself also dont know how to read that indicator, all I see is 2 lines zig zaging all over the show.
Can someone please give a brief explaination on how to read the indicator
I wouldn’t go so far as to say I’m a genius…lol …but I am the tech champ at my workplace :D.
As for divergences, I’m sure you took this class Divergence Trading: Using Divergence System to Trade Forex Currency
This overlay is just comparing the correlation in direction of 2 highly correlated pairs. Whether it’s price and an oscillator, or price & price, when their directions diverge, that’s a sign.
A quick cheat sheet I use is…
Up trends
- Higher High vs Lower High (HH/LH) = short (bearish divergence - reversal)
- Higher Low vs Lower Low (HL/LL = Long (hidden bullish divergence continuation)
Down trends
- Lower Low vs Higher Low (LL/HL) = Long (bullish divergence -reversal)
- Lower High vs Higher High (LH/HH) = short (hidden bearish - continuation)
Hope that helps 
Sweetpip, not to complicate things if say on a 5min chart E/U and G/U are heading in an up direction, is it a sign to buy or vice verse for sell and ofcourse using ICT method of trading
If price on both pairs are going up, they are just going up…lol.
However, if [B]gu[/B] starts making [B]Higher Highs[/B], and [B]eu[/B] is making [B]Lower Highs[/B], thats a reversal sign for a [B]short[/B]. (EU could also instead be making the HHs and GU making the LHs)
[I]- Higher High vs Lower High (HH/LH) = short (bearish divergence - reversal)[/I]
if [B]gu[/B] is making [B]higher lows[/B], and [B]eu[/B] is making [B]lower lows[/B], thats a hidden bullish continuation sign for a [B]long[/B]. (Again EU could be making the HLs and EU the LLs)
[I]- Higher Low vs Lower Low (HL/LL = Long (hidden bullish divergence continuation)[/I]
Yes in confluence with a key resistance area, chart pattern, etc as ICT suggests.
so what you are saying is if the lows are diverging then it indicates long potential and if the highs are diverging it indicates short potential and it doesn’t matter which pair leads. So if this divergence happens where there is confluence then there is a trade possibility.
The reason I am asking is because in regular divergence with an ocillator the direction of the indicator is the clue for what direction the pair is heading. So I was thinking earlier that eu was the indicator and therefore if it there is divergence then it would be a sign that gu is dropping.
In any event this is all very new to me and I have never been intereseted in correlations but this is so interesting that I cannot help but be excited to see if this can really help to pick tops and bottoms.