Divergence Indicators - page 6

[fxcope]

Divergent Indicator

I am looking for Divergent Indicators to signal trend reversal using either Stochastic, RSI, RVI or MACD.

Thanks

[Sergey Golubev]

I moved your post to Divergence Indicators' thread.

Just read this thread from the beginning.

[sleewc]

[Sergey Golubev]

If you are talking about this post https://www.mql5.com/en/forum/175886/page2 so I see 2 indicators as mq4 codes. It can not be expired as it is mq4 source files.

[Sergey Golubev]

Stochastic Divergence indicators are on this post https://www.mql5.com/en/forum/173574/page148

[zorak]

Hi,

Would someone be kind enough to illusterate graphically using chart example(s) to show how to confirm divergence using lower timeframes?

Many thanks in advance!

Good trading

[fxbs]

thank you,Scrat; just want to add:

Regular Divergence- RD

1-Price is making higher highs while the indicator is not

2-Price is making lower lows while the indicator is not

Hidden Divergence- HD

3-Indicator is making higher highs while price is not.

4-Indicator is making lower lows while the price is not.

[florinv75]

here is an example on gbp-jpy: daily and h4 timeframes (please note the ratio between them, it is 1:6... 1 daily bar = 6 h4 bars).

notice the HIDDEN bullish divergence on daily.

then focus on the last move, but on h4. i circled it. you are basically looking for a REGULAR bullish divergence on h4. it is confirmed when the trendline of the move is broken. enter ONLY on confirmation.

basic principle: look for a hidden divergence on higher timeframe, then go to the next lower timeframe and wait for the regular divergence. both divergences must of the same kind: either both bullish, or both bearish.

you can use this technique with ANY pair of timeframes, as long as their ratio is 1:5 or 1:6... 1min/5min, 5min/30min, 40min/h4, h4/daily, or daily/weekly.

hope this helps.

zorak:
Hi,

Would someone be kind enough to illusterate graphically using chart example(s) to show how to confirm divergence using lower timeframes?

Many thanks in advance!

Good trading

[florinv75]

and another idea, maybe someone could program it (i'm not sure if this has already coded into FX5 divergence indicators) - identifying divergences using fractals:

- on one side, first fractal extreme and indicator extreme acquired during this first fractal (please note that i said indicator extreme per fractal, not per candle)

- on the other side, second fractal extreme and indicator extreme acquired during this second fractal.

if anyone is interested in coding this, i will come up with an example.

[florinv75]

thanks fxbs. that is a must know for who wants to use divergence in trading.

zorak, here is another (ongoing this time) example: g-u, daily and h4.

daily shows a hidden bullish divergence.

h4 shows a regular bullish divergence, but unconfirmed. enter long on a trendline breakout, target above last high (2.0006) or keep the long until you see a regular bearish divergence on daily timeframe.

zorak:
Hi,

Would someone be kind enough to illusterate graphically using chart example(s) to show how to confirm divergence using lower timeframes?

Many thanks in advance!

Good trading