What is The Best Divergence Indicator?

mrfixituk

Junior member
41 0
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.
 

NVP

Legendary member
37,630 2,034
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
 

0007

Senior member
2,376 660
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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bbmac

Veteren member
3,584 788
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 !

G/L
 
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NVP

Legendary member
37,630 2,034
and dont forget that the extended absence of divergence can be a nice warmup for a decent run ...........
 

new_trader

Legendary member
6,597 1,437
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!
 

Jack Francisco

Member
85 1
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.
 

FringFX

Active member
244 6
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.
 
M

member275544

0 0
price itself is a great indicator..if your high is shallow compared to the last, thats a sure sign of something coming your way. Any indicator will only tell you after the fact
 

kenhigh

Junior member
23 0
The best div indicator and the fastest to alert you on div is Link Removed.
It works great on longer TF like 4H, daily and weekly.
Remember, is not free and cant be used on more than one computer and works on MT4 platform
 
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