en Divergence Trading 13.0
Metatrader Indicator (MT4/MT5)
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ℹ Overview
Divergence trading is a popular strategy among technical traders, as it can be a useful tool for identifying potential trend reversals or strength in the current trend. A divergence occurs when there is a difference between the direction of price and the direction of a technical indicator, such as an oscillator. This difference can be either bullish or bearish, and can provide valuable insight into the underlying strength of the current trend.
The Divergence Trading Indicator is a powerful tool for finding both regular and hidden divergences in price charts. It displays bullish divergences in blue and bearish divergences in red, and includes visual, email, and push alerts for trading signals. This indicator also includes a multi-timeframe and multi-symbol scanner, making it easy to quickly identify potential trade opportunities across a wide range of assets.
One of the key features of the Divergence Trading Indicator is its unique approach to generating a trading signal. It uses breakouts to signal trades and improve timing, helping traders capture more profits. In addition to displaying suitable stop-loss and take-profit levels for every trade, the indicator also includes performance statistics with the current settings entered.
The Divergence Trading Indicator is fully customizable in both behavior and appearance, allowing traders to tailor it to their specific needs and preferences. It can be loaded many times in the same chart with different oscillators, giving traders the flexibility to use the indicator with their preferred oscillator.
The indicator supports a wide range of well-known oscillators, including the RSI, CCI, MACD, OSMA, Stochastic, Momentum, Awesome Oscillator, Accelerator Oscillator, Williams Percent Range, Relative Vigor Index, Money Flow Index, On Balance Volume, and Rate of Change.
Overall, the Divergence Trading Indicator is a valuable tool for traders looking to improve their trading results and capture more profits in the financial markets. With its powerful features and customizable options, it is an essential addition to any trader's toolkit.
Key Features
- Customizable colors and sizes
- Implements performance statistics
- Supports hidden and regular divergences
- Displays suitable stop-loss and take-profit levels
- It includes a multi-symbol and multi-timeframe scanner
- It implements email/sound/visual alerts
Supported Oscillators
- RSI
- CCI
- MACD
- OSMA
- Stochastic
- Momentum
- Awesome Oscillator
- Accelerator
- Williams Percent Range
- Relative Vigor Index
- Money Flow Index
- On Balance Volume
- Rate of Change
Trading Guidelines
- Suitable instruments: Forex, Commodities, Indices, Stocks and Crypto
- Suitable timeframes: Monthly, Weekly, Daily, 12 Hours, 8 Hours, 4 Hours, 2 Hours, 1 Hour and 30 Minutes
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Input parameters
When loading the expert to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.
- Amplitude
- Size of the divergences to find in the chart.
- Oscillator
- Choose the oscillator to load to the chart.
- Divergence types
- Enable or disable divergence types: hidden, regular or both.
- Breakout period
- Breakout period in bars for the trading signals.
- Min divergence size in bars
- Minimum size in bars for a divergence to be displayed.
- Max divergence size in bars
- Maximum size in bars for a divergence to be displayed.
- Max. history bars
- Amount of bars to evaluate when the indicator is loaded.
- Indicator Settings
- Desired indicator settings for all the oscillators and indicators involved.
- Drawing Settings
- Choose colors and line sizes to draw divergences.
- Alert Events
- Enable or disable alerts for divergence and breakouts.
- Alerts
- Enable or disable alerts of all kinds.
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FAQ
- Does the indicator repaint?
- Yes, the indicator must repaint to accomplish its function. Divergences can expand and therefore the indicator must redraw to follow the divergence as it expands. However, trading signals are based on breakouts and are mostly non
- What kind of alerts does the indicator raise?
- The indicator will raise an alert when a divergence is detected, and another type of alert when a breakout happens confirming a divergence. It is recommended to trade on the breakout alone, because divergences can expand.
- What timeframe should I trade?
- Divergence signals tend to be more accurate on the longer time frames. You get less false signals. It is recommended to trade H4 and above.
- Can I load the indicator many times using different oscillators?
- Yes, you can. They won't interfere with each other.
- Can I call this indicator from an EA?
- No, the indicator does not have callable buffers. It only draws objects.
- Can I find divergences in many oscillators at the same time?
- Only if you load the indicator many times on the same chart.
- Does the indicator implement alerts?
- Yes, of all kinds.
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Developers
In order to build your expert advisor, you can read data from the indicator using the iCustom() function as exemplified below. The indicator has one extra buffer which only purpose is to store trading signals as constants: this is the only buffer you need to read from. Copy and paste the code below into your EA, and replace the indicator name of the iCustom() call with your own.
//---- Define constants #define OP_REGULAR_BUY 0 #define OP_REGULAR_SELL 1 #define OP_HIDDEN_BUY 2 #define OP_HIDDEN_SELL 3 //---- Declare indicator type enum Indi_Type { RSI = 0, // RSI CCI = 1, // CCI MACD = 2, // MACD OSMA = 3, // OSMA (MACD Histogram) STOCH = 4, // Stochastic AWESOME = 5, // Awesome Oscillator ACCELERATOR = 6, // Accelerator Oscillator MOMENTUM = 7, // Momentum WILLIAMS = 8, // Williams Percent Range RVI = 9, // Relative Vigor Index MFI = 10, // Money Flow Index OBV = 11, // On Balance Volume }; //---- Declare divergence type enum Div_Type { Regular_And_Hidden = 0, Regular = 1, Hidden = 2, }; //+-----------------------------------------------+ //| Custom indicator iteration function //+-----------------------------------------------+ int start() { // Assign indicator to use Indi_Type type = AWESOME; // Assign divergence type Div_Type div = Regular_And_Hidden; // Declare breakout period int breakout_period = 2; // Read divergence double divergence = iCustom(Symbol(), Period(), "PZ_DivergenceTrading_LICENSE", "--", type, div, breakout_period, 5, 1); // Read breakout double breakout = iCustom(Symbol(), Period(), "PZ_DivergenceTrading_LICENSE", "--", type, div, breakout_period, 4, 1); // Actions on divergences (these can expand and repaint) if(divergence == OP_REGULAR_BUY) { /* Your code for regular bullish divergence */ } if(divergence == OP_REGULAR_SELL) { /* Your code for regular bearish divergence */ } if(divergence == OP_HIDDEN_BUY) { /* Your code for hidden bullish divergence */ } if(divergence == OP_HIDDEN_BUY) { /* Your code for hidden bearish divergence */ } // Actions on breakouts (these almost never repaint) if(breakout == OP_BUY) { /* Your code for bullish breakout (blue arrow) */} if(breakout == OP_SELL) { /* Your code for bearish breakout (red arrow) */} // Exit return(0); }
Screenshots
