What is The Best Divergence Indicator?

This is a discussion on What is The Best Divergence Indicator? within the Technical Analysis forums, part of the Methods category; I've had some great results with the williams accumulation/distribution bullish/bearish divergence with a price which is greater/less than the 50 ...

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Old Jan 9, 2013, 9:33am   #1
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What is The Best Divergence Indicator?

I've had some great results with the williams accumulation/distribution bullish/bearish divergence with a price which is greater/less than the 50 sma. I back this up with Ichimoku Kinko Hyo to see if it's a bull or bear. I also look at the current candle stick.

What divergence indicator has worked best for you when screening for divergences? Chaikin Oscillator? Chaikin Money Flow? Money Flow Index? Price Volume Trend?

I want to turn an indicator into a screener for amibroker so want to have the best of the best if I am going to spend money on getting it coded, if you could point me in the direction of the code I would be REALLY greatful! Many thanks.
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Old Jan 9, 2013, 11:24am   #2
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Re: What is The Best Divergence Indicator?

hey there................if it works for you then use it !

what you have to realise is that every indicator merely is a reflection of price movement............ so if the markets are kind and you get an extended move up or down (a trend) then you make money

if the market are flat and ranging ..you dont

N
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Old Jan 9, 2013, 11:49am   #3
 
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Re: What is The Best Divergence Indicator?

Also, don't forget that different types of indicator suit their respective market types. You will also find through backtesting that certain stocks (can't speak for FX) respond well to certain indicators while others don't (perhaps that should be vice-versa!). You can use this to increase your probability of a profitable trade. In the end it's all about having probability on your side.

Amibroker is great for this kind of thing - see the Yahoo Amibroker group.
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Old Jan 9, 2013, 12:29pm   #4
 
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Re: What is The Best Divergence Indicator?

Also, don't forget that there is divergence - and there is divergence - not all are created equally - look for the repating patterns that highest in probability on the oscillator (s) you choose, on the settings you choose, on the instrument (s) you trade. Ask yourself what such divergence patterns may be telling you and whether anything else may be confirming it (like price itself, DOM and/or volume,) and where on the chart the divergence -if it develops- is most likley to see a successful outcome across any sample of times it sets-up. Don't forget the hidden divergence !

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Old Jan 9, 2013, 2:17pm   #5
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Re: What is The Best Divergence Indicator?

and dont forget that the extended absence of divergence can be a nice warmup for a decent run ...........
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Old Jan 9, 2013, 2:31pm   #6
 
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Re: What is The Best Divergence Indicator?

I find that the best divergence indicator is between my trade entry, and subsequent direction of the market. 92.7% accuracy.
I am looking to make an app for it.
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Old Jan 9, 2013, 2:51pm   #7
 
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Re: What is The Best Divergence Indicator?

Quote:
Originally Posted by mrfixituk View Post
What divergence indicator has worked best for you when screening for divergences? Chaikin Oscillator? Chaikin Money Flow? Money Flow Index? Price Volume Trend?
Trade2win without a doubt. When most people are bullish on something it is almost guaranteed to collapse, and when most people are bearish, the price skyrockets!
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Old Jan 9, 2013, 4:46pm   #8
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Re: What is The Best Divergence Indicator?

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Trade2win without a doubt. When most people are bullish on something it is almost guaranteed to collapse, and when most people are bearish, the price skyrockets!
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Old Jan 23, 2013, 10:10am   #9
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Re: What is The Best Divergence Indicator?

I used to use RSI for divergence and its quite good. You may need to set the period to a different value depending on your timeframe though. As for the FXS divergence - what are the rules for it - I don't really see how you are getting the entrances and exits.
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Old Jan 25, 2013, 2:38am   #10
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Re: What is The Best Divergence Indicator?

the beauty is any indicator could work. what would work best for you is an indicator that you've used and studied for a very long time.
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