Trading using divergence is like ringing the cash machine. I was curious as to how one would determine exiting especially when the move is not much as in the chart posted here for the third green up arrow. WOuld you use other methods or exit as soon as the MACD changes direction?
Hi, Et_phone! trying to figure it out ...
There are 2 basic types of Divergence.
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.
Divergence Trading Patterns............................NQoos
thanks for sharing those indicators.
But does anyone have a working stochastic divergence indicator ? the one o have says it is expired. And other have either RSI; MACD; or MOMENTUM divergence but not stochastics...thanks a lot.
Stochastic RSI Indicator Corrected
There was a simple but serious error in the Stochastic_RSI.mq4 indicator in Post 16.
I have corrected it here. If you want to use it for backtesting you will have to greatly increase the number of bars in the Properties / Inputs window - try adding a couple zeroes.
The theory on this indicator is given here: Technical Analysis Studies
The indicator used in the researchdiq website (Post 14) does not look like the above indicator, but it looks very much like one of the lines of the Stochastic indicator in Metatrader, and uses the same scale. Could it be the same?
Hope this helps,
Ideally, I'd like it work in a separate window.
that's how Integer did rsi cci OS/OB zone diver
Request For Indicator
I'd like to request for all in one divergence indicator (MACD - Stochastic - RSI - CCI - ....) - by the way I have made a seach and found some divergence indicators but what am looking for is just one customized indicator - any way if such an indicator doesn't exist or can't be programmed I'd like to request for single CCI divergence indicator and RSI divergence indicator or information about TraderBO_Divergence_System indicators in action.
Thanks in Advance
Some of the indicators posted in this thread are easy to modify and customize if we can know what you want to.