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Divergence Printer

This is a special analyzer which has been designed to display the Divergence of MACD in combination with Simple Moving Average and RSI (default) on the main chart itself. This helps a trader to assess the magnitude of divergence by visual inspection. Four colors (Blue, Red, Pink and Yellow) have been used to describe the different market conditions in respect to the price movement. The interpretation of the different colors in respect to the price movement is as below:

  • Blue: If the analyzer displays Blue dots and price is moving up then it is a bullish market, but if price is falling then it is a positive divergence.
  • Red: If the analyzer displays Red and price is moving down then it is a normal bearish market.
  • Yellow: If the analyzer displays Yellow dots and price is moving up then it is a negative divergence.
  • Pink: If the analyzer displays Pink dots and price is moving down then it is a weak positive divergence.

The screenshots will help you understand more regarding the color scheme above.

The analyzer is best used on timeframes from M15 to H1.


Analyzer Parameters

  • DecreaseFactor = 3 - decrease factor.
  • MovingPeriod = 12 - Moving Average period.
  • MovingShift = 6 - Moving Average shift.
  • MACDOpenLevel = 3 - MACD Open level.
  • MACDCloseLevel = 2 - MACD Close level.
  • MATrendPeriod = 26 - MACD Trend period.

Rest of the Boolean variables are for internal use and not to be changed.

  • All parameters should be kept at their default values.

Summarily, the analyzer is designed to display positive and negative divergence. A trader can use his own strategy to take advantage of these divergences.


Tips

  1. The analyzer will start displaying the dots on live charts from the current time only whenever attached to a chart. It cannot mark dots on history candles.
  2. Trade only big divergences as they have high chances of getting folded.
  3. All parameters should be kept at their default values.
  4. The indicator works best on all major Forex pairs.
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