Divergence Between Like Indicators
If the indicator is using same calculation method and same data, wouldn't that make divergence misleading (the only divergence can happen due to short calculation not to actual data divergence)
If that is the case, how can the above charts be explained?
My point however has been answered as no one appears to have heard of divergence between like indicators.
As both the charts responded correctly by opening down from the closing price then I can see clearly this is an untapped very safe signal.
TEAMTRADER
...what divergence between like indicators tells you?...I don't get it...does it show you direction of the trend in the future or reversal point?
It would normally indicate a continuation trade - a continuation in the previous direction. The indicators have picked out a high or a low based on a high probability of overbought or oversold.
For example in the screengrab, the first highligted area in stochs (upper indi) and CCI (lower indi's) show a huge difference in values.
The big stochs remains under 35 level with the smaller stochs overbought (60+ difference), this is the ideal place for a continuation trade.
It picks out highs and lows, current reversal points, very accurately.
I've asked my coder pal to get a signal/alert based on this but he says he is too busy until well into the New Year - if anyone else can do it quicker I have the parameters and I am sure it will be an excellent tool.
TEAMTRADER
excellent idea..
interesting indicators...
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
You agree to website policy and terms of use
Has anyone seen Indicator divergence SIGNAL/ALERT (divergence between like indicators on differing settings eg., stochs vs stochs, CCI vs CCI, MACD vs MACD etc)?
Attached are two examples of divergence between stochs on the EU chart and CCI on the GU chart.
TEAMTRADER