This indicator combines the divergence of rsi and macd and displays it on the candlestick chart.
RSI: 1. When rsi is at a high point, once it falls by 1 k line, it will detect the divergence from the previous high point. This can quickly find the divergence that has taken effect and help you quickly capture the trend before a sharp decline or rise. The difference between other RSI divergence indicators: the official divergence indicator is to detect the 5 and the k line, which may lead to a large amount of decline. 2. This indicator detects the previous high and the previous low of 5, 10, 20 lengths at the same time, instead of only detecting a fixed length, so that more deviations can be found.
MACD: 1. When MACD-diff line(orange color) is at a high point, once it falls by 1 k line, it will detect the divergence from the previous high point. This can quickly find the divergence that has taken effect and help you quickly capture the trend before a sharp decline or rise. 2. This indicator detects the previous high and the previous low of 5, 10, 20, 40 , 60 lengths at the same time, instead of only detecting a fixed length, so that more divergences can be found.
Notice: Because it is a quick divergence detection, it is recommended to confirm that the divergence takes effect after the current k is completely closed first. I have identified this state in the indicator as "k not end".
Disadvantages and Risks: Since it is a quick discovery, there will be error identification. Error divergences will recolor to grey.
Suggestion: Use Alert catching divergence occurrences.
Please do not: Don't go short in the uptrend, don't go long in the downtrend. Top divergences that occur because of a strong uptrend are usually only temporary pullbacks. Bottom divergences in persistent declines are also temporary rallies. Do not attempt to trade such low-return trades. It is recommended to use the divergence indicator when the stock price has made a new high and retraced, and once again made a new high, because this often leads to the end of the trend.
Divergence how to use: 1. After the previous candlestick was completely closed, a bottom divergence was found. 2. Open an long order at the beginning of the second bar, or as close to the bottom as possible (because the stop loss will be smaller). 3. Break the stop loss price below the previous low where the divergence occurred, which already means that the divergence is wrong.
Информация о релизе
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changes:Added rsi and macd to set the length of days, if you set a smaller number of days, you can get more divergance tips.
This is super awesome indicator. Thanks. One thing is that in alert conditon, mt10result and mb10result should be added in topb1 and botb1 to catch all the conditions.
I’ve been searching thousands of indicators if not more to find the very few indicators that aligns well with my strategy for over a year now. I finally feel I have found the missing puzzle. An indicator that does very well and aligns with the other indicators i’ve found AND IT DOES NOT REPAINT!
The problem again is I have no expertise coding and I badly want to do backtesting as 10-20 examples (over a few weeks) of data, is not statistically significant.
Now if you can do a HUGE favor and modify this script to cover at least 300-400 trades in the past using the SAME DEFAULT, I would really appreciate you in anyway I can! This would complete everything. I will find you and kiss your hands lol.
Sorry for long writing! Cheers.
rsu9
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@mahdizadeh1, I suggest you change the rsi to 6, and the macd remains the same. In addition, there is no need to perform backtesting, because I have already backtested. If you go long or short according to the no-brainer, it will definitely be a loss, because there will always be top divergence in uptrend, and bottom divergence in downtrend. If you tried to back-test it at that time, you were already on the wrong path. The correct way to use divergence is: 1. In an uptrend, go long at the bottom divergence. 2. In a downtrend, go short at the top divergence. 3. Use top-bottom divergence in volatile markets.
amiretemad8
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@EZBSchmarotzer , Awesome indicator I use it with price action and it's profitable for day trading with 15 min time frame. Thank you
Bro I just wanna say you did a awesome job with this indicator. I mixed it in with other things I like to use and it has helped me do this as a full time job Thankyou so much you are legit a legend. Will you keep this updated if any bugs come up?
pappa_ei
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Hi, very nice indicator, I want to use it for my learning. When i select the indicator, it shows nothing in the screen. Do i need to adapt anything separately in order to see the chart in the screen?
suddenChile14154
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Thank you very much for the script, it's great, very good work. I'm in the process of backtesting my strategy right now.
I have one problem, I can't change the number of bars to see how script behaves in the past
The standard settings are 2000 (max_bars_back=2000), but when it changes, I can't see any changes on the graph. The same applies to individual Rsi and Macd divergence scripts
If you want to improve your script, I have 3 suggestions 1. Choose whether to see Rsi or Macd signals or both 2. Select how many bars back signals will be visible 3. Selection of color and form of signals
One thing is that in alert conditon, mt10result and mb10result should be added in topb1 and botb1 to catch all the conditions.