The indi is correct. It shows divergences as it should. Attached is the version that shows the divergence lines. Divergences are turning points (local extrema) of the oscillator compared how high then the price is (must not be a local extremum), not reversa.
It is a good indicator but still does not get all the signals correct.
It doesn't compare 3 or 4 last highs (but it could
To your question, the new low or up turning point is a bit earlier and then the price falls again shortly, then it seems not to be cofirmed. What is your pip range? But there are even more unfound divs.
Hmm, I have made kaputt the forum? Don't want my pic, and it ain't even age-restricted
It happens sometimes ...
No kapput :):)
The Renkorange is 10 - your point about the turning point being a bit early is sound but if it could be made to show all divergence then this indicator can be made very useful because the false signals are easily recognised - and they have a major advantage of showing exits, not a change in direction as divergence is normally used.
Teamtrader maybe check this one out, from what I can tell the one you posted is getting it's last peaks and troughs from both the stochastic and the signal, when it should only be getting it from only stochastic. Besides the divergence alerts this one also alerts on stoch and signal cross.
Again, I appreciate the indicator and will check it live this coming week.
Many Thanks also from me, mrtools.
Oha, I tried also SMI and Wildhog to renko but they celebrate a heavy divergence and slope change party as if there were no tomorrow.
TEAMTRADER, have you tried MACD divergences on renko? Those looks very nice to me.
Thanks - it does get more correct divergence signals than the other.