Reverse Divergence - page 2

[european]

pghiaci:
what is the best indicator for detecting divergance???

Most popular are CCI and RSI, even MACD can be used.

CCI would be nice to have.

euro

[leutzuro]

european:
Most popular are CCI and RSI, even MACD can be used.

CCI would be nice to have.

euro

Is better WCCI

but how i told i prefer stochastic oscilator and works good for me

the key is money management

have the best

[european]

divergence video

For those who want to learn how to trade divergence, here's a handy video:

http://www.researchdig.com/div3rev/

Stoch RSI attached

[pghiaci]

I tried cci,wcci,wpr,stoch && ... but I think the best indicator for detecting divergance is RSI_X2.I want a new indicator for detecting divergance.

[[Deleted]]

The way I understood how to use divergence is between fractual points. And to only use revese divergence. The way to identify reverse divergence is that when it plots a line on the chart, the lines that start near the zero line and move outward from right to left is the reverse divergence. I will only trade it in the direction of the prevailing trend. This indicator draws lines between peaks and troughs, but I think it may be better to measure between fractual points. Or at least use them for confirmation.

On the attached chart, I have marked some divergence points that are all reverse divergence. several of them are not in the direction of the trend and result in bad trades. But the ones that are in the direction of the trend, useally work out. .

Pghiaci, I wonder if you could attach a chart showing how you use RSI_X2? I appreciate your sharing this indicator, but I am a little uncertain how you use it.

European, thanks for the video, and the indicator. Perhaps one thing that i am missing from my strategy is that the oscillator should be overbought or oversold by a certain degree to make a signal more valid. This video shows this.

I can see the potential of divergence. I am still developing my strategy, so I am greatful for all the comments so far. Keep em coming!

Thanks, Stephen

[[Deleted]]

Here is the newest revision of FX5.

https://www.mql5.com/en/code/7076

Stephen

[leutzuro]

pghiaci:
what is the best indicator for detecting divergance???

for me the best is stochastic oscilator standar setup 5.3.3

USD/JPY 1H timeframe

[turbs]

The FX5 indicator is good, but I've noticed that the arrow will appear out of nowhere by at least one bar prior. So when backtesting it looks amazing, but actually, the buy/sell arrows will appear late, and it seems as though you've missed the trade.

[FXBabe]

Thanks for the indicator. Do the arrows repaint?

Stephen:
Hi Daniel,

Here is a picture and indicator that shows reverse divergence. The FX5 indicator plots both regular div. and reverse div. As you are reading the indicator from left to right, the lines drawn on the indicator that start high and come down (move inward) to the "0" line are regular divergence. The lines that start low and move away from the "0" line (outward) are reverse divergence.

This indicator uses OsMA to determine divergence. I suppose it could be changed to use CCI.

It seems best on the 4hr or d1 chart. I confirm with RSI before the trade. I only trade revese divergence.

This is a great indicator that could be even better. I have some thoughts for it if anyone is interested.

Good luck, Stephen

[turbs]

Ok guys,

After rigorous testing on multiple timeframes, and testing these FX5 Divergence and RSI divergence indicators, I have come to the conclusion that they are crap.

Here is why:

When testing live, as soon as a green UP arrow appears, and I enter a long position, guess what happens? The indicator will disappear. Then after a few seconds it will re-appear. If the price continues to go up, the arrow will re-appear, but if the price goes down, the arrow will not appear.

Put simply, this indicator repaints. So when you backtest, IT IS WORTHLESS.

I don't understand why people bother making indicators that repaint. Such a waste of time.