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Detecting Fake Price Movements - Convergence Divergence Indicator

  • #41
  • May 10, 2017 11:24am May 10, 2017 11:24am
Quoting Go5
{quote} As far as I understand the document you posted (which by the way lacks sufficient examples...), we are looking for a deviation from the correlation which can be up or down (why would it be only down for a positive correlation?). As the blue line goes under -0.5 we look whether the corresponding move is up or down and enter to reverse it.
Since I was asked to clarify my idea as for the rules, see this:

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  • #42
  • Edited 12:29pm May 10, 2017 12:08pm | Edited 12:29pm
Quoting Go5
{quote} Since I was asked to clarify my idea as for the rules, see this: {image}
Trading Rules have been updated on post #1.
  • #43
  • May 10, 2017 12:29pm May 10, 2017 12:29pm
WARNING: DEMO ONLY

MOST of the hard work is done! Now, we need the rest of the trading community to jump in, try it out and provide feedback on progress, so that we can tweak and optimise accordingly.

This is an H1 trading system. So signals don't come often, however there are 44 different combinations to monitor as per post #1. Enjoy!

Post your charts - failed or successful, so we can analyse.
  • #44
  • May 10, 2017 3:40pm May 10, 2017 3:40pm
Quoting samsha786
{quote} Thanks RapzyFX! The indicator is already built and does work if you load it on a chart with valid configuration. The only issue I have now is back testing it. I have been in touch with FerruFX, so let's see what comes of that.
No more issues. I've figured it out. The indicator is fully functional now.
  • #45
  • May 11, 2017 2:03am May 11, 2017 2:03am
Hi Samsha 786

i use your indicator for two mt4. It's different

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  • #46
  • Edited 3:20am May 11, 2017 3:01am | Edited 3:20am
Quoting sugengrods
Hi Samsha 786 i use your indicator for two mt4. It's different {image} {image}
Hi

Please make sure you download full history for the pairs specified in the indicator.

Once you download the history, it will work as expected.

EDIT: According to the pictures you posted, you are not using the latest version. Please download the latest version from post #1.
  • #47
  • May 11, 2017 3:33am May 11, 2017 3:33am
Quoting samsha786
{quote} Hi Please make sure you download full history for the pairs specified in the indicator. Once you download the history, it will work as expected. EDIT: According to the pictures you posted, you are not using the latest version. Please download the latest version from post #1.
problem solved, thank's Samsa
  • #48
  • May 11, 2017 4:30am May 11, 2017 4:30am
Interesting thread, thank you for sharing this.. Subscribed.
Keeping It Gangsta
  • #49
  • May 11, 2017 5:15am May 11, 2017 5:15am
Very fine idea and indicator !
For me as a thankful user it would be great if a trading-signal or an alert-function
could be added to the indicator.
  • #50
  • May 11, 2017 8:45am May 11, 2017 8:45am
This is how CDI shows on my chart.

Am i missing something?

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  • #51
  • May 11, 2017 11:09am May 11, 2017 11:09am
Quoting toksdprog
This is how CDI shows on my chart. Am i missing something? {image}
Have you seen a previous post with a similar question?
  • #52
  • May 12, 2017 3:05am May 12, 2017 3:05am
Hello,

I try to make it work but I have some troubles

It says "Must be attached to a EURGBP H1 chart", I'm in a EURGBP H1 chart.

I activated all the historic data for the refered pairs (when I click download it says "there no new data for the symbol")

I made sure the data icon is activated.

So I don't see where the problem is.. but when I restart MT4, and go back to History Center, I see that some timeframes are desactivated

I'm on MT4 with broker Traderways

Thanks for your help
  • #53
  • May 12, 2017 5:04am May 12, 2017 5:04am
Quoting goodmusic
Hello, I try to make it work but I have some troubles It says "Must be attached to a EURGBP H1 chart", I'm in a EURGBP H1 chart. I activated all the historic data for the refered pairs (when I click download it says "there no new data for the symbol") I made sure the data icon is activated. So I don't see where the problem is.. but when I restart MT4, and go back to History Center, I see that some timeframes are desactivated I'm on MT4 with broker Traderways Thanks for your help
Please post screen shot of chart with indicator and post screen shot of your indicator settings.
  • #54
  • May 12, 2017 5:27am May 12, 2017 5:27am
Quoting samsha786
{quote} Have you seen a previous post with a similar question?
i am seeing this

2017.05.12 11:22:54.749 CDI EURGBP,H1: zero divide in 'CDI.mq4' (142,126)

What might the issue?
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  • #55
  • May 12, 2017 7:41am May 12, 2017 7:41am
Quoting samsha786
{quote} Have you seen a previous post with a similar question?
I have downloaded the history and it will work as expected.

Thanks Samsha
  • #56
  • May 12, 2017 3:02pm May 12, 2017 3:02pm
Quoting toksdprog
{quote} I have downloaded the history and it will work as expected. Thanks Samsha
I have downloaded the history and it is working perfectly now.

Thanks Samsha
  • #57
  • May 16, 2017 11:15pm May 16, 2017 11:15pm
Quoting Anusragger
Nice eh? {image}
Subjective and not necessary
  • #58
  • May 17, 2017 2:57am May 17, 2017 2:57am
Indicator has been updated to provide signals more frequently. Changes as follows:

  1. 24 hours NOW 12 hours
  2. 90 days NOW 63 days

Quality still looks good.

I will start posting charts soon.

  • #59
  • May 17, 2017 4:18am May 17, 2017 4:18am
1- Only allowing minor aged girls to Miss America's contest would save lives!
Proof:
Attached Image (click to enlarge)
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2- American people have to drive very far to purchase chicken.
Proof:
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If you believe my conclusions are dumb (yes they are) please read this thread and the very questionnable pdf again!

You cannot blindly apply Pearson correlation formula (like the author of the pdf does) to time series data because they both depends on time. This co-dependence on time will almost always create a spurious correlation.
https://svds.com/avoiding-common-mis...h-time-series/

When the time series are prices of major FX pairs that's worse: they also co-depend on USD. USD gets stronger? EUR/USD goes down and so does AUD/USD. That's RORO at play; nothing to do with any interaction between European and Australian economies.

After de-trending the times series you would immediately notice that AUD and EUR are almost not correlated. Believe it or not GBP and EUR are not that much. EUR and CHF are. AUD and NZD are.

You guys jump on your keyboard to write an indicator before thinking if this indicator makes any kind of sense. You take the pdf content at face value without questionning the very dubious assertion that a short term decorrelation is an opportunity.
Attached Image



If you don't care and keep thinking there is some value in this indicator at least write it correctly. Turning a linear problem into a quadratic algorithm makes the software engineer I am really mad: http://rebcabin.github.io/blog/2013/...ance-matrices/

For those of you who think I'm just a nay-sayer who didn't do his homework here is my version (with de-trended data by first difference)
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Have fun with correlation but please be very careful.
No greed. No fear. Just maths.
  • #60
  • May 17, 2017 6:22am May 17, 2017 6:22am
Quoting samsha786
{quote} No more issues. I've figured it out. The indicator is fully functional now.
Great work! Will look into it but don't seem to get the rules yet.

What I mean is this: from the recent rules on page 1 does it mean that when conditions 1 & 2 are met whatever price is doing at that time is FAKE.

Please explain. Thanks Once again.
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