Looking for a way to automate regular and hidden divergences identification so that it may be applied in rules in the context of a chain of confluence.
Can this be done now ? or shall this be discussed further in hopes to be added as a feature request ?
Thank you
Finding divergences
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NakedMarkets
- Posts: 259
- Joined: Tue Feb 22, 2022 11:06 am
Re: Finding divergences
Hello,
We assume you speak about hidden divergences with particular indicators ? RSI, Macd, or others ?
It could be done but first, we need an indicator displaying and gathering the divergences, then it could be added in the indicators rules
We assume you speak about hidden divergences with particular indicators ? RSI, Macd, or others ?
It could be done but first, we need an indicator displaying and gathering the divergences, then it could be added in the indicators rules
Re: Finding divergences
I am talking here about both regular/classical divergences and hidden divergences. A comparison of higher highs/lows and lower highs/lows with a standard oscillator is executed (most popular would be RSI, Stoch. and MACD)
I am not convinced that adding this as a feature in the indicators is the best approach as it would make more sense to have a complete distinct divergence indicator where you select an oscillator it applies to in the preferences. It will undoubtedly have much more code into it than the indicator themselves.
Also, divergence lines can be identified on the indicator itself (typically shown below the price action) but it may also be placed on the price action.
Divergence identification is a critical aspect in trading, I am surprised there wasn't much demand yet to automate the identification and build powerful setup rules.
I am not convinced that adding this as a feature in the indicators is the best approach as it would make more sense to have a complete distinct divergence indicator where you select an oscillator it applies to in the preferences. It will undoubtedly have much more code into it than the indicator themselves.
Also, divergence lines can be identified on the indicator itself (typically shown below the price action) but it may also be placed on the price action.
Divergence identification is a critical aspect in trading, I am surprised there wasn't much demand yet to automate the identification and build powerful setup rules.
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SaltyCoffee
- Posts: 3
- Joined: Mon Jul 15, 2024 1:28 pm
Re: Finding divergences
I would also be interested to know more about this.
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NakedMarkets
- Posts: 259
- Joined: Tue Feb 22, 2022 11:06 am
Re: Finding divergences
Having a divergence (regular and hidden) identifying process working for all oscillators indicators is a bit more complex indeed.
It has to be an additional layer to find any kind of divergence in any indicators buffers relating to the current price value.
And we need to provide options, because the concept of divergences is relative and not absolute : you have to tune some parameters for the user otherwise, you will see divergences everywhere on the charts.
We have to analyze how it could be implemented for all indicators knowing it's a bit of work
It has to be an additional layer to find any kind of divergence in any indicators buffers relating to the current price value.
And we need to provide options, because the concept of divergences is relative and not absolute : you have to tune some parameters for the user otherwise, you will see divergences everywhere on the charts.
We have to analyze how it could be implemented for all indicators knowing it's a bit of work
Re: Finding divergences
I think this should be limited only to a few selected oscillators and not all.
I mean after having RSI, Stoch and MACD, this is more than enough to cover most use cases depending on the user's preferred price momentum osc.
Perhaps you can establish some base by looking at the script "Divergence for Many Indicators v4" on TV. It would be a good start.
Agreed, there is some non negligible work behind it for sure, but it can definitely pay off in getting traders better at integrating divergence identification in their trading decision workflow.
Thank you!
I mean after having RSI, Stoch and MACD, this is more than enough to cover most use cases depending on the user's preferred price momentum osc.
Perhaps you can establish some base by looking at the script "Divergence for Many Indicators v4" on TV. It would be a good start.
Agreed, there is some non negligible work behind it for sure, but it can definitely pay off in getting traders better at integrating divergence identification in their trading decision workflow.
Thank you!
Re: Finding divergences
It if can help, there is also another visual divergence indicator I like to use on TV named Plain Stochastic Divergence by author devlucem