Hidden divergence - page 4
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What if I put out the ToR and we set up a tender? Yuri, yes, if he agrees to refine it, which I'm afraid will not work as programmers are very proud people.
yzh
mail
email
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25 44 52 39
asia
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not so proud to neglect
If you estimate the working time spent on this, and multiply it by the cost of an hour's work for such a big businessman, then Yuraz still owes money. By the way, I have removed my post about passionarity, or else they might get the wrong idea...
If you are familiar with the work of the project manager you probably will not sarcasm. And thanks for that, by the way.
2 Geronimo How did it go with Yuri?
2 Geronimo, how did it go with Yuri?
I have my own indicator which distinguishes divergences from covariances
I think you can easily distinguish between a divergence and a covvergence
Divergence (divergence of lines connecting extrema on the price chart and their corresponding extrema on the indicator chart) and
CoNvergence (the convergence of lines connecting extrema on the price chart and their corresponding extrema on the indicator chart).
In your graph, all of the marked signals, except as indicated by an arrow, are the signals of divergence. Moreover, the divergence signals indicate both a future movement against the trend and a movement with the trend. That is, your indicator (or any other indicator) does not care at all where the divergence is and where the convergence is.
I.e. in the same trend the divergence signals can be either counter-trend or trend-following ones. The same applies to convergence signals.
I will show a couple of charts to make it convincing. The divergence signals on the charts are counter-trend (yellow lines) and trend signals (purple lines).
The same story is with the convergence signals - I just happened to have these very charts with the divergence.
Below convergence signals are trend-following (yellow lines) and counter-trending (purple lines).
To avoid confusion, it is better to distinguish signals as trend signals and counter-trend signals.
The above does not mean that the trend has only divergence signals or only convergence signals. There are both signals.
I just wanted to show that for any (downtrend or uptrend), one cannot say that divergence is a signal against the trend, while convergence is trend-wise or vice versa.
=Geronimo.
Distinguish easily, but there is no measure of signal strength, even if formal - such as the difference between the compared peaks and troughs on the price chart and the oscillator. =
The "strength" of a divergence or convergence signal does not depend on "...the difference between comparable peaks and troughs on the price chart and on the oscillator", but on the place of its generation in the wave hierarchy (an internal correction signal in a wave structure is "weaker" than a correction or reversal signal in a completed wave structure). The "gauge" of the signal strength in any frame, is the wave and trend analysis.
A filter is a trend indicator, the selection of which (which) should be done very carefully.
Try to figure out for yourself how to determine the moment when the signal generation starts and the moment when its execution starts. (i.e. why the indicator is anticipating).
Conclusion.
The divergence (convergence) signals are generated equally (equally) against the trend and with the trend.
The divergence (convergence) signals are leading.
Divergence (convergence) signals are always performed in any frame and are never false. Their illiterate interpretation can be false.
The signals of all divergence classes are equal!!!
In case of multiple divergences each of them is fulfilled, otherwise there would be no next one. Each of them should be used (except for the shortest frames - you may not have time)
The most sensitive and accurate indicator for a divergence is OsMA (my recommended parameters are 9,21,5) or its analogues with some additions. (In the world it is known as MACD_H = MACD-histogram (not to be confused with MACD fast line display as a histogram).
Divergence signals may be significant and not significant. On H1 there is no sense to react to the correction within the wave structure of the 1-minute frame, while there can be on the correction of the whole structure (if the profit is expensive).
Filtering of the divergence signals significance - trend indicator (TDF) + wave analysis.
I realize that there are "unaccustomed" things here. I cannot suggest anything else - you should get used to it. There are many more "unusual" properties of the divergence (convergence) signals. There are several articles of mine in the forums as attachments to the posts. You can search them.
They will shed some light on divergence issues (and not only).
Good luck.
Divergence (divergence of lines connecting extremums on the price chart and corresponding extrema on the indicator chart) and
Convergence (the convergence of lines connecting extrema on the price chart and their respective extrema on the indicator chart).
In your graph, all of the marked signals, except as indicated by an arrow, are the signals of divergence. Moreover, the divergence signals indicate both a future movement against the trend and a movement with the trend. That is, your indicator (or any other indicator) does not care at all where the divergence is and where the convergence is.
I.e. in the same trend the divergence signals can be either counter-trend or trend-following ones. The same applies to convergence signals.
I will show a couple more charts to make it convincing. The divergence signals on the charts are counter-trend (yellow lines) and trend (purple lines).
The same story is with the convergence signals, I just happened to have these very charts with the divergence.
Below convergence signals are trend-following (yellow lines) and counter-trending (purple lines).
To avoid confusion, it is better to distinguish signals as trend signals and counter-trend signals.
=Geronimo.
Distinguish easily, but there is no measure of signal strength, even if formal - such as the difference between the compared peaks and troughs on the price chart and the oscillator. =
The "strength" of a divergence or convergence signal does not depend on "...the difference between comparable peaks and troughs on the price chart and on the oscillator", but on the place of its generation in the wave hierarchy (an internal correction signal in a wave structure is "weaker" than a correction or reversal signal in a completed wave structure). The "gauge" of the signal strength in any frame, is the wave and trend analysis.
A filter, a trend indicator, should be selected very carefully.
Try to figure out for yourself how to determine the moment when the signal generation starts and the moment when its execution starts. (i.e. why the indicator is anticipating).
Conclusion.
The divergence (convergence) signals are generated equally (equally) against the trend and with the trend.
The divergence (convergence) signals are leading.
Divergence (convergence) signals are always performed in any frame and are never false. Their illiterate interpretation can be false.
The signals of all divergence classes are equal!!!
In case of multiple divergences each of them is fulfilled, otherwise there would be no next one. Each of them should be used (except for the shortest frames - you may not have time)
The most sensitive and accurate indicator for a divergence is OsMA (my recommended parameters are 9,21,5) or its analogues with some additions. (In the world it is known as MACD_H = MACD-histogram (not to be confused with MACD fast line display as a histogram).
Divergence signals may be significant and not significant. On H1 there is no sense to react to the correction within the wave structure of the 1-minute frame, while there can be a correction of the whole structure (if the profit is expensive).
Filtering of the divergence signals significance - trend indicator (TDF) + wave analysis.
I realize that there are "unaccustomed" things here. I cannot suggest anything else - you need to get used to it. There are several articles of mine in the forums as attachments to the posts. You can look them up.
They will shed some light on divergence issues (and more).
Good luck.
Good day!
I would like to understand how you classify the divergence and the convergence
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Divergence is convergence - if the oscillator is used to measure it, you may use MDAC and OSMA, but the parameters may be different
divergence - it happens if the price breaks through the previous price top, but the oscillator doesn't do it.
convergence - on the contrary, if the price doesn't break through, but the oscillator does
if I'm not mistaken according to the classics
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You could have referred to the classics
because there are so many ways of interpreting the same concept
and in general everyone can understand it differently
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here I have separately described convergence
Convergence - if the oscillator breaks through its previous value and the price doesn't overcome it.
Good afternoon!
I would like to understand how you classify divergence and convergence
...Because there are many ways of interpreting the same concept and in general each one may have a different interpretation...
I classify it the way technical analysis should be interpreted, not the way you do.
In TA there is an unambiguous interpretation, which corresponds to its designation DIVERGENCE and CONVERGENCE.
Divergence means divergence (i.e., all signals when lines connecting extrema on the price chart and their corresponding extrema on the indicator chart Diverge, i.e., the distance between lines increases from left to right) and
Convergence means convergence (i.e. all signals when lines connecting extrema on the price chart and their corresponding extrema on the indicator chart converge, i.e. from left to right distance between lines decreases).
In my opinion, it cannot be simpler.
Divergence on the left and Convergence on the right.
I classify the way technical analysis is done, not arbitrarily as you do.
In TA there is an unambiguous interpretation, which corresponds to its designation DIVERGENCE and CONVERGENCE.
Divergence means divergence (i.e. all signals where lines connecting extrema on a price chart and their corresponding extrema on an indicator chart Diverge, i.e. the distance between lines increases from left to right) and
Convergence means convergence (i.e. all signals when lines connecting extrema on the price chart and their corresponding extrema on the indicator chart converge, i.e. from left to right distance between lines decreases).
In my opinion, it can not be simpler.
Divergence on the left, convergence on the right
It is an interesting subject. I would like to clarify it.
Convergence of lines implies the same scale and the Y scale itself. If this is not the case (probably in most cases), then a question arises.
Suppose the picture shows both dashes downwards. What is it - divergence or convergence? The assumption is that the user can arbitrarily change the vertical scale on either graph (i.e. by changing the slope angles both convergence and divergence can be drawn)
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Do you use any concepts (and perhaps quantify them) for cases of "unidirectional" divergence -- both down or both up?
This is an interesting topic. I would like to clarify.
The convergence of the lines assumes the same scale and the Y scale itself. If this is not the case (probably in most cases), then a question arises.
Suppose the picture shows both dashes downwards. What is it - divergence or convergence? The assumption is that the user can arbitrarily change the vertical scale on either graph (i.e. by changing the slope angles both convergence and divergence can be drawn)
--
Do you use any concepts (and perhaps quantify them) for cases of "unidirectional" dashes -- both down or both up?
Interesting questions -- one gets the impression that the basics of thechanalysis have not been studied. Read the definition of divergence and convergence. If there is neither divergence, nor convergence, there is no signal.
Concerning the scale - try to do what you've just said.
s2101
Do you have any statistical studies on the reliability of Divergence (Convergence) signals ? On which time interval do you prefer to work? (ie on what time interval signals are more reliable). Are there any restrictions (cancellations) on the distance between the maxima (minima)?
Sorry for so many questions, but this is a really interesting topic that has not been discussed for a long time. Thank you in advance if you decide to share your knowledge.