Page 4 of 8 FirstFirst ... 2 3 4 5 6 ... LastLast
Results 31 to 40 of 72
Like Tree14Likes

Divergence indicator(s)

This is a discussion on Divergence indicator(s) within the Trading tools forums, part of the Trading Forum category; MACD Divergence Part 2 Part 2 shows numerous examples of markets showing MACD Divergence, not cherry picked! We also showed ...

      
   
  1. #31
    Administrator newdigital's Avatar
    Join Date
    Feb 2013
    Posts
    10,473
    Blog Entries
    2910
    Follow newdigital On Twitter Add newdigital on Facebook Add newdigital on Google+ Add newdigital on MySpace
    Add newdigital on Linkedin
    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.


    Premium Trading Forum: subscription, public discussion and latest news
    Trading Forum wiki || MQL5 channel for the forum
    Trading blogs || My blog

  2. #32
    Administrator newdigital's Avatar
    Join Date
    Feb 2013
    Posts
    10,473
    Blog Entries
    2910
    Follow newdigital On Twitter Add newdigital on Facebook Add newdigital on Google+ Add newdigital on MySpace
    Add newdigital on Linkedin
    MACD Divergence Part 3

    When MACD Divergences FAIL and how to manage those trades.


    Premium Trading Forum: subscription, public discussion and latest news
    Trading Forum wiki || MQL5 channel for the forum
    Trading blogs || My blog

  3. #33
    Administrator newdigital's Avatar
    Join Date
    Feb 2013
    Posts
    10,473
    Blog Entries
    2910
    Follow newdigital On Twitter Add newdigital on Facebook Add newdigital on Google+ Add newdigital on MySpace
    Add newdigital on Linkedin
    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.


    Premium Trading Forum: subscription, public discussion and latest news
    Trading Forum wiki || MQL5 channel for the forum
    Trading blogs || My blog

  4. #34
    Junior Member
    Join Date
    Jan 2014
    Posts
    29
    Gidday

    I like to use this for divergence.
    Attached Files Attached Files

  5. #35
    Junior Member
    Join Date
    Jan 2014
    Posts
    29
    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

  6. #36
    Junior Member
    Join Date
    Jan 2014
    Posts
    29
    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.

  7. #37
    Administrator newdigital's Avatar
    Join Date
    Feb 2013
    Posts
    10,473
    Blog Entries
    2910
    Follow newdigital On Twitter Add newdigital on Facebook Add newdigital on Google+ Add newdigital on MySpace
    Add newdigital on Linkedin
    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).
    Premium Trading Forum: subscription, public discussion and latest news
    Trading Forum wiki || MQL5 channel for the forum
    Trading blogs || My blog

  8. #38
    Junior Member
    Join Date
    Jan 2014
    Posts
    29
    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

  9. #39
    Administrator newdigital's Avatar
    Join Date
    Feb 2013
    Posts
    10,473
    Blog Entries
    2910
    Follow newdigital On Twitter Add newdigital on Facebook Add newdigital on Google+ Add newdigital on MySpace
    Add newdigital on Linkedin
    Quote Originally Posted by monstar View Post
    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
    Premium Trading Forum: subscription, public discussion and latest news
    Trading Forum wiki || MQL5 channel for the forum
    Trading blogs || My blog

  10. #40
    Junior Member
    Join Date
    Jan 2014
    Posts
    29
    Thankyou Newdigital

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

    Divergence indicator(s)-divergence-indy.png

    I probably missed a few
    Picks the turns like a ripper!!!
    Last edited by monstar; 01-02-2015 at 02:47 AM.

Page 4 of 8 FirstFirst ... 2 3 4 5 6 ... LastLast

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •