I agree. I specifically requested the programmer make it easy to insert other oscillators, although, the first version won't have direct support for other oscillators. I gather that once I get my hands on the code that part should be easy to handle.

I'd suggest building a trendline break into the entry. You also should be able to name the minimum bars you require between highs or lows in price to control the scale of the divergences you want to track. Otherwise, you have an indicator firing off unprofitable signals. Another consideration is to look at higher time frame trend as a filter.

Thanks for the suggestions.

1. Threndline break. That's not currently part of my rules, but, I'll consider it for the future.

2. Minimum Bars Between Highs or Lows. This is currently set via a user input named Bars4CorrelationScan. I have it set by default to 36 which I've found works well with GBPUSD at M15.

3. Higher Time Fram filter. Yes. Have considered this. For now, everything is operating off of the chart's time frame.

Cheers

Bill

Many thanks to Newdigital and other guys for the info.
Trading divergence can be very profitable


I thried several 'divergence' indicators on here but none seems do the job well, although it shouldn't be difficult.
See chart attached

All is needed for an indicator, say RSI or CCI, to change color when it has divergence with price.
May be somebody from programmers can make us a Xmas present

Attached Images

divergence.GIF (14.7 KB, 1750 views)

Yep, seems simple enough doesn't it? I've been looking for something similar for quite a while..

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European, I found an interesting Oscillator on the VT_platform called the Stochastic RSI_Oscillator. If you follow the normal rules of divergence, this seems to work very well.

Also, I came across this link where I learned about this Oscillator; it makes interesting listening:

http://www.researchdig.com/div3rev/

I am also attaching here a MT4 version of this Oscillator, but it is slightly different. Having said that, once you get use to it, it works well enough for me in the test-phase this far.

Best wishes.

Attached Files

Stochastic_RSI.mq4 (2.7 KB, 367 views)

__________________
"Risk comes from not knowing what you are doing" The Tao of Warren Buffett.

"Avoiding mistakes, makes people STUPID and having to be RIGHT, makes you OBSOLETE." Robert Kiyosaki.

I am looking for an indicator called:

Trend Reversal Index

It is from John Netto's book- One Shot One Kill Trading

He uses it for DIVERGENCE trading much like the applications mentioned in this thread. He found that after looking at hundreds of different indicators- he found that this indicator worked the best.

Netto mentions that it is a RSI 13 period with a RSI 3 period

the Metastock formula is:

RSI(13)+Mov(RSI(3),3,S

I hope that somebody has seen this indicator for MT4, or is kind enough to create for a non-programmer etc..

Ty-in advance, Matt Rippy

Hi PipRippy

Is this what you are looking for?

Attached Files

RSI_X2.mq4 (2.2 KB, 336 views)

I have been experimenting with divergence over the past few weeks using the CCI indicator and confirming the entry point with RVI and RSI/MA. So far it appears to be giving fairly good results. I thought I would post a screen shot for anyone who is interested. I will post more details as soon as I can.

Attached Images

DIV1.jpg (101.0 KB, 1790 views)

Hello increase ,
I noticed you made a pretty good attempt at helping y09ster and so now, I found a similar indicator with divergence lines (if its placed in the first indicator window). I'm hoping you can tell me how to program this one to give alert with sound at its best deviation as well?

Thanks again, richard

Attached Files

MACD_Divergence.mq4 (9.3 KB, 415 views)