RSI? Stoch? MACD?
What tips do the experts have!
What tips do the experts have!
Which system is the best? Or which combinations of systems work the best? 43 replies
Best divergence indicator? 31 replies
Divergence and hidden Divergence 116 replies
The Best of The Best Trade Follow up RSI 6 Divergence 7 replies
If it works, it works... 3 replies
DislikedThe problem is. Divergence is allways easy to spot looking back.
But when to you know that divergence is complete?Ignored
DislikedNiandra, all indicators are derived from price. Oscillators measure rate of change of price, and decelerations in price show up as oscillator divergences, simply because of the way the oscillators are calculated.
In the attached chart, both MACD(12,16,9) histogram and RSI(14) show divergence. Why? Price is decelerating (the slope of the yellow lines is getting less steep). Or, in other words, the distance between successive lows is decreasing.
The problem with indicators: it's not only about which indicator to use, but how to calibrate them. Different...Ignored
DislikedI wrote once algos for regular divergence entries based on TRIX and BR Squeeze (based on bollinger bands) in easylanguage. The reason for two indicators was that one was needed to measure a 'close' neighbouring divergence to the closest low / high and the purpose of the second indicator was to look for a divergence to a more distant low / high. If both conditions were met than the strat triggered the entry. It worked better than just one Stoch. But it turned out that this entry technique worked better as exit technique after all. Karl V. {image}...Ignored
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