Discussion of article "A New Approach to Interpreting Classical and Hidden Divergence"

To add comments, please log in or register
MetaQuotes Software Corp.
Moderator
200770
MetaQuotes Software Corp.  

New article A New Approach to Interpreting Classical and Hidden Divergence has been published:

The article considers the classical method for divergence construction and provides an additional divergence interpretation method. A trading strategy was developed based on this new interpretation method. This strategy is also described in the article.

Hidden Divergence

In this figure, we can clearly see the upward market, but MACD has formed a new low, which is not confirmed by the price chart. This discrepancy hints at the presence of a hidden bullish divergence and indicates the strengthening of uptrend. 



Author: Alexander Lasygin

cesande
210
cesande  

Thanks very much for this article. Is there any way that anyone can code the indicator for mq4 ?

Jagg
138
Jagg  
A first try to convert it to MT4 
Files:
Alexander Lasygin
3910
Alexander Lasygin  
MetaQuotes Software Corp.:

New article A New Approach to Interpreting Classical and Hidden Divergence has been published:

Author: Alexander Lasygin

 There is a basic version for MT 4. It differs from the one described in the article because it is based on Accelerator and FTLM. For the article, at the request of the moderator, a replacement was made.

PaulVick
13
PaulVick  

I like the New Approach you have taken using the AO indicator.  I am a big fan of OBV and volume generally. I am looking for something like your new approach to supplement my Wyckoff trading.

Does the “New Approach” also work with OBV, i have done a bit of  checking on past data but cant seem to get it to work. Let me know if you have had success and i will persevere.

Your article is very well written, like your style.

Thanks

Paul


Alexander Lasygin
3910
Alexander Lasygin  
PaulVick:

I like the New Approach you have taken using the AO indicator.  I am a big fan of OBV and volume generally. I am looking for something like your new approach to supplement my Wyckoff trading.

Does the “New Approach” also work with OBV, i have done a bit of  checking on past data but cant seem to get it to work. Let me know if you have had success and i will persevere.

Your article is very well written, like your style.

Thanks

Paul


Hi Paul. I am also very interested in volumes. In my opinion, this is one of the main drivers of the market. I am familiar with the OBV indicator. Experimenting with it. In this approach, it gives a lot of false signals. I would prefer it a smoothed Money Flow Index.

PaulVick
13
PaulVick  
Alexander Lasygin:

Hi Paul. I am also very interested in volumes. In my opinion, this is one of the main drivers of the market. I am familiar with the OBV indicator. Experimenting with it. In this approach, it gives a lot of false signals. I would prefer it a smoothed Money Flow Index.

Hi Alex, apologies for reply delay, i have been away.

There is a variant of OBV called Gadi_obv (attached) which is supposed to give better "signals" but not so sure, i keep both and "Accumulation/Distribution [AD]" indicator on my MT4 but find the basic OBV to be best.  AD, whilst you would expect it to be more accurate i find to be way off, but if all three in same direction odds are better.

OBV i find to be good at confirming a top.  Once you hit a price peak then reverse and on to another price peak, if OBV does not match the prior peak there is a good chance of a reversal

<ex4 file deleted>
To add comments, please log in or register