Hidden divergence - page 65
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
I detect a trend reversal by triple MACD-H (OsMA) divergence . When the last peak of the divergence is formed and the indicator has crossed the zero line and the signal appears I wait for one more candle and watch the indicator ... If a candlestick appears in the direction of a new trend and the MACD has finally crossed the zero line, I enter against the trend. If the MACD is getting stronger on this candle, it is a convergence. So I simply do not enter the trend (or just hold the previous one), waiting for a small pullback and continuation of the movement along the convergence.... It works very well in flat trends, i.e. with angles close to 45 degrees.
Please show me a screenshot. >> Thank you.
Tell me what's not clear? - What is unclear.
Dear Sir, where is the ambiguity-what is 45 degrees or what is MASD?
>> I detect a trend reversal by a MACD-H triple divergence (OsMA). When the last peak of the divergence is formed and the indicator has crossed the zero line and the signal appears I wait for one more candle and watch the indicator ... If a candlestick appears in the direction of a new trend and the MACD has finally crossed the zero line, I enter against the trend. If the MACD is getting stronger on this candle, it is a convergence. So I simply do not enter the trend (or just hold the previous one), waiting for a small pullback and continuation of the movement along the convergence.... It works very well in flat trends, i.e. with angles close to 45 degrees.
It's not quite clear what is meant by convergence. there are too many uncertainties, and triple divergences within a day are rare and very ambiguous.
The trend consists of the following Formations (Each completed bar is considered together with the previous one and a Formation is defined. TheClose and Open coordinates do not matter):
- Movement Formation:
High[i+1]>High[i+2]&&Low[i+1]>Low[i+2] - Bull Formation, and High[i+1]<High[i+2]&&Low[i+1]<Low[i+2] - Bear Formation,
- then Formation Pauses:
High[i+1]<High[i+2]&&Low[i+1]>Low[i+2] - Compression Formation , and High[i+1]>High[i+2]&&Low[i+1]<Low[i+2] - Extension Formation ,
- then Formations Extremes:
High[i+1]<High[i+2]&&High[i+2]>High[i+3] - Bearish Extremum or Low[i+1]>Low[i+2]&&Low[i+2]<Low[i+3] - Bull Extremum.
Next Analysis:
To enter a position you need to open it in the direction of the Movement Formation.
To suspend or close the position, the bars of the Expansion Formation must move out of the direction of the previous Formation.
Low[i+2]<Low[i+3] for a Bullish Formation or
High[i+2]>High[i+3] for a Bearish Formation or
reversed Formation through Extremus Formation to:
High[i+1]<High[i+2]&&High[i+2]<High[i+3]&&High[i+3]>High[i+4] - Bearish turn orLow[i+1]>Low[i+2]&&Low[i+2]>Low[i+3]&&Low[i+3]<Low[i+4] - Bull turn.
Thus, using a simple visual analysis you can stay in the trend for a long time without using any indicators.
Let's read the definition (taking into account that the count of candles is reversed and we'll start with the 3rd candle, or we can do it with the 5th ... 10th ...):
If the Hi of the 2nd candle is higher than the Hi of the 3rd candle and simultaneously the low of the 2nd candle is higher than the low of the 3rd, we have a Movement Form (trend of 2 candles), which vector is directed upwards.
If the Hi of the 1st candle is higher than the Hi of the 2nd candle and simultaneously the low of the 1st candle is higher than the low of the 2nd candle, we have a Movement Formation (a trend of 3 candles) with the vector continuing to point upwards.If we entered the position on the 2nd candle and the close of the 1st is higher than the close of the 2nd, we can close the position in profit.
If we wait for the trend to develop, and the ratios will continue to hold, we will make more money.
If the Lows of the 1st candle goes below the Lows of the 2nd candle, we may close the position at a loss, or we may wait for the situation to develop. Here we need to connect additional filters. Timing, levels, events, .....
Usually when there is divergence beyond oscillator levels it is better to keep the position minimal. Then we close extra lots when the Lo of a candle crosses half of the range of the previous formation.
Take the USDCHF M15 yesterday August 19 (see pictures on the previous page) there are arrows (I am too lazy to draw the explanations). Arrows that do not meet the condition High[i+1]>High[i+2]&&Low[i+1]>Low[i+2] do not count. There are at least 6 segments where it is true. And so many more in the opposite direction.
The channel, by the way, is not Bollinger, but ordinary (smoothed), but it is built using moving average calculated by the way of ribbons, but according to CCI formula with corrections. But the indicator lines of High and Lo.
The indicator is very sensitive. On the move upwards, pay attention to the crossing of the upper line of the channel with the line of the High indicator. And during the downward movement on crossing by the line of Low the lower line of the channel. Crossing of both lines of the channel is the first sign of change in the trend. Divergences are also visible on the channel, usually waiting for a second entry into the channel. Levels and crossings of trend lines with the indicator and channel lines are also used, as well as ..... and also ahead of the crossover with the channel lines. etc.
I am completing this at the request of my colleagues:
- The sizes of candlesticks don't matter
- colour i.e. mutual position of opening and closing too - but this is true for candles from D1- Below the frames on this strategy, you need to apply a lot of filters and I don't do it except sometimes for the adrenaline
- we move the stop on the border of the previous formation (remember 3 candles is 2 Formations), all this on D1 and low-volatility pairs
- we look how the candles behave on H8 and if there are no sharp reversals in the first 2 hours of a new session, you can take a risk, considering the sufficient condition of the current formation and going beyond the previous high or low, all this assuming that the 1st category news are not expected - better to follow the news indicator, if you need any will lay out
- The candlestick from the Expansion Formation that will knock out the stop is the first candlestick of a new Formation, and I usually wait for that Formation to complete.
Thank you.
Do put it out there, of course. >> it would be appreciated.
Very interested in the subject, please send me the strategy too. mihail@intermedica.nnov.ru
Can i have the strategy too, very interesting atural@pochta.ru. >> Thank you.
I once published a Divergence indicator on a standard MACD with Alert and language selection
I added arrows to it to make it easier to use.
METAQUOTES, permission to attach any files in all sections of your site!
What if we do not use fixed periods of the oscillator to identify diverters, but adjust it after (at least visual) determination of the wave on the chart.
- somehow (let's say visually) identify extrema, measure the length;
- set the oscillator settings to that frequency;
For simplicity glued OsMA with one parameter (the others are calculated by coefficients roughly equal between the parameters in the default OsMA settings).
How much of a misconception is this?
Yes. You look at the market and wonder how you can apply some (12:26:9) or the like to it...
I'm not talking about MTS. I myself spent 1.5 years trying to find, make a grail:)
I agree with YuraZ that you can use semi-automatics here in conjunction with your flair, your gaze.