Divergence indicator(s)

MACD Divergence Part 2

Part 2 shows numerous examples of markets showing MACD Divergence, not cherry picked! We also showed failed divergences.

MACD Classic Bullish and Bearish Divergence

MACD Classic divergence is used as a possible sign for a trend reversal. Classic divergence is used when looking for an area where price could reverse and start going in the opposite direction. For this reason classic divergence is used as a low risk entry method and also as an accurate way of exit out of a trade.
1. It is a low risk method to sell near the market top or buy near the market bottom, this makes the risk on your trades are very small relative to the potential reward.
2. It is used to predict the optimum point at which to exit a Forex trade

There are two types:

1. Classic Bullish Divergence
2. Classic Bearish Divergence

Classic Bullish Divergence

Classic bullish divergence occurs when price is making lower lows (LL), but the oscillator is making higher lows (HL).


MACD Classic bullish divergence

Classic bullish divergence warns of a possible change in the trend from down to up. This is because even though the price went lower the volume of sellers that pushed the price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downward trend.

Classic bearish divergence

Classic bearish divergence occurs when price is making a higher high (HH), but the oscillator is lower high (LH).


MACD Classic bearish divergence

Classic bearish divergence warns of a possible change in the trend from up to down. This is because even though the price went higher the volume of buyers that pushed the price higher was less as illustrated by the MACD indicator. This indicates underlying weakness of the upward trend.

MACD Divergence Part 3

When MACD Divergences FAIL and how to manage those trades.

MACD Divergence Part 4 of 4

More MACD Divergence examples.

MACD Hidden Bullish and Bearish Divergence

MACD Hidden divergence is used as a possible sign for a trend continuation.

This setup occurs when price retraces to retest a previous high or low.
1. Hidden Bullish Divergence
2. Hidden Bearish Divergence

Hidden Bullish Divergence

Forms when price is making a higher low (HL), but the MACD oscillator is showing a lower low (LL).
Hidden bullish divergence occurs when there is a retracement in an uptrend.


MACD bullish divergence

This divergence confirms that a retracement move is complete. This divergence indicates underlying strength of an uptrend.

Hidden Bearish Divergence

Forms when price is making a lower high (LH), but the MACD oscillator is showing a higher high (HH).
Hidden bearish divergence occurs when there is a retracement in an uptrend.


MACD bearish divergence

This setup confirms that a retracement move is complete. This diverging indicates underlying strength of a downtrend.

NB: Hidden divergence is the best divergence to trade because it gives a signal that is in the same direction with the trend. It provides for the best possible entry and is more accurate than the classic type of diverging.

Gidday

I like to use this for divergence.

Oh yeah

I tried to get a guy on freelancer to code it as an indicator.
But as you you can see it is not working.
Love to know if you guys think it worth puruing or not.bol_sma_histo1crazy3.mq4

He was a nice guy but was struggling to complete project so i tried to "roll with it". From memory i asked him to compare buy divergences and sell divergences over "x" bars. That's what the arrows are.
Hahahaha what a mess but hey we gotta try new ideas.

Hi monstar,

I sent PM to Igorad asking him to improve this indicator (he is very busy person but I hope he will be able to make it).

Thanks newdigital
I am running some of your eas. Which ones are you currently using?
I am playing with c.s.m.p.1.2, tickscalper and brainwashing expert all on 0.01 lots.
I love your site thankyou for your efforts.
monstar

Originally Posted by monstar

Thanks newdigital
I am running some of your eas. Which ones are you currently using?
I am playing with c.s.m.p.1.2, tickscalper and brainwashing expert all on 0.01 lots.
I love your site thankyou for your efforts.
monstar

• TickScalper is running since 14 of April this year on one/same account (not big deposit) and it is fine.
• c.s.m.p.1.2 is fine but initial deposit as 700 dollars was too smal for it ... it may be necessary to have at least 2,000
• Control EA is running since 22 of September 2014 with 700 dollar starting deposit and it is good till now.
• I stopped trading Brainwashing but for the other reason - just to get more space in VPS - because this EA is already profitable especially for H4 timeframe so no need to prove anything
• I will start to trade some more in 2015

Thankyou Newdigital

If igorad could create it I that would be crazy good
I guess it would look something like this.



I probably missed a few
Picks the turns like a ripper!!!