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LoveMT4 Divergence indicators: How good are Divergences and Convergences?

#1
MT4 Divergence indicators: How good are Divergences and Convergences?

MT4 Divergence indicators discussion and download list.png

Download links to common MT4 indicators with auto divergences display:


When you use oscillators you may recognize that the indicator and the price don't move in the same direction all the time. We compare the indicator and what happens with the price. For that start here from the indicator (inverted causality). Draw a TL in the subwindow from High to High or Low to Low (I don't like it on the chart because the chart gets messy quickly) and see the behavior of the further price.

It is a very good early-warning sign that the market is getting weak or strong and that you can tighten your stops or prepare for exit or entry. Which osci you use is up to you. I recommend a momentum setup (short periods) and here RSI/RSX, MACD and Stochastic have a similar results. The behavior between the Highs and Low aren't of interest. You can also take A/D line or Value Charts for more Divergences and Divergences from higher tfs are also very useful. Trend continuation, reversals like trend exhaustion or retracements, decide what you need for your trading style and look for those odds.

Some advice(s):

  • It's no signal, just a sign. You need confirmations.
  • Use only Highs of the indicator higher 50 or 0 (when range is from -100 till +100)
  • Use only Lows of the indicator lower 50 or 0 (when range is from -100 till +100)
  • Use Highs or Lows that are 'in view', no other peak is between. You can compare also Highs or Lows not being 'in view' either of the indicator or price, but don't use

Divergences when both aren't in view.

  • There is no best Divergence indicator. MACD is very good for trend exhaustion, but misses some other good opportunities. 
  • Don't let them draw by scripts, they don't find all Divergences and are to slow for Scalping.
  • When the retracement after a Divergence is small and will be broken in trend direction, it was likely an test then and an impulse follows.

With some exercise you have a nice edge in your arsenal and with a scalping setup most of the time you can make your way hand over hand along the price movements.

Happy Trading.

Divergence Cheat Sheet.pdf
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Div-Con.png

Div-Con2.png

Div-Con3.png


DIVERGENCE (One of the nearly Holy Grail Trading System!!!)

#5
Hi to all traders,

I made this Thread special for sharing the best Divergence Indicator or Trading system that we used or we know.

I'm one of the Divergence traders, who really focus on learning and searching (never stop) the Divergence.

my opinion and for some success trader i know that divergence is one of the Trading system that nearly the HOLY GRAIL. where we are traders seek for it.

and this Thread i create for us to join together to look for the BEST Divergence Indicator or DIvergence Trading System that we know.

kindly to all masters and traders on this forum can sharing on here.

(I'm sorry if my english do not good, because it is not my native language).

Best regards,
shinnosuke
Divergence Cheat Sheet for Forex.jpg
Divergence Cheat Sheet.pdf
(165.53 KiB) Downloaded 924 times


Re: MT4 Divergence indicators: How good are Divergences and Convergences?

#6
shinnosuke wrote:
Fri Aug 18, 2017 5:20 pm
Hi to all traders,
I made this Thread special for sharing the best Divergence Indicator or Trading system that we used or we know.
I'm one of the Divergence traders, who really focus on learning and searching (never stop) the Divergence.
my opinion and for some success trader i know that divergence is one of the Trading system that nearly the HOLY GRAIL. where we are traders seek for it.
and this Thread i create for us to join together to look for the BEST Divergence Indicator or DIvergence Trading System that we know.
kindly to all masters and traders on this forum can sharing on here.
(I'm sorry if my english do not good, because it is not my native language).

Best regards,
shinnosuke
According to my poor knowledge,divergence is a formation that can be used and obtain from any kind of indicator,it is not a kind of indicator but experts can better guide us :)
Then it is a good start to share,explain your idea and experience how to use divergence in different way successfully,of course a worth contribution towards trading community.
carry on :)
Indicator is just a tool.

Use it only if it can benefit you. Leave it if you don't know how to use it optimally.

Re: MT4 Divergence indicators: How good are Divergences and Convergences?

#9
mades wrote:
Fri Aug 18, 2017 6:33 pm
Divergence is miles from holy grail, especially because it lags even more than normal indicators. Also it is extremely unreliable if not used on very high TF (4H min).
yes, i agree.. on big TF is more reliable.
but in my opinion, if we use it on 1H we can have a good Risk Ratio Reward on each signals.
do you have a good indicator for divergence to share mades?

Re: MT4 Divergence indicators: How good are Divergences and Convergences?

#10
mntiwana wrote:
Fri Aug 18, 2017 5:51 pm
shinnosuke wrote:
Fri Aug 18, 2017 5:20 pm
Hi to all traders,
I made this Thread special for sharing the best Divergence Indicator or Trading system that we used or we know.
I'm one of the Divergence traders, who really focus on learning and searching (never stop) the Divergence.
my opinion and for some success trader i know that divergence is one of the Trading system that nearly the HOLY GRAIL. where we are traders seek for it.
and this Thread i create for us to join together to look for the BEST Divergence Indicator or DIvergence Trading System that we know.
kindly to all masters and traders on this forum can sharing on here.
(I'm sorry if my english do not good, because it is not my native language).

Best regards,
shinnosuke
According to my poor knowledge,divergence is a formation that can be used and obtain from any kind of indicator,it is not a kind of indicator but experts can better guide us :)
Then it is a good start to share,explain your idea and experience how to use divergence in different way successfully,of course a worth contribution towards trading community.
carry on :)
Thank you my friend mntiwana, i will try to explain with picture and indicator that i share. :thumbup:
thank you.


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