Divergence Indicator - page 6

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Linuxser
5921
Linuxser  
fxcope
5
fxcope  

Divergent Indicator

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

Thanks

Sergey Golubev
Moderator
113338
Sergey Golubev  

I moved your post to Divergence Indicators' thread.

Just read this thread from the beginning.

sleewc
3
sleewc  
Sergey Golubev
Moderator
113338
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
Moderator
113338
Sergey Golubev  

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

zorak
30
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
232
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
Files:
gjd.gif 22 kb
gjh4.gif 27 kb
fxbs
3203
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.

Files:
florinv75
232
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
Files:
gud.gif 27 kb
guh4.gif 26 kb
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