Divergence Trader

27 sept. 2018

The indicator catches the regular and hidden divergences on indicators like RSI, CCI and Williams %R. It is possible to select the indicator to be used for catching the divergences and multiple selection is possible. The script not only runs on Crypto trading but also Forex or DXY and EXY along with. The signal type can be selected as "Long/Short" or "Buy/Sell". Since the divergence does not occur sequentially, same signal may appear after the signal. There is no repaint, as the signal appears on the newly opened candle and it means the conditions are met and signal is solid to follow from the beginning time of candle. Besides, confirmations can be set for previous candle's high/low, previous candle's green or red, High/Low Doji or Body Doji candles. Doji sensibility can be set separately. There are 2 divergence calculation mode, each has to be used separately as they effect's calculation parameters differently. Alarms are defined in the indicator as again Long, Short, Buy or Sell.

Along with all of these, the entry point confirmations can be set as in indicators (ie. CCI has to be over 100 when Long condition met.) The confirmation code works separately from the divergence indicators so there is no need to use CCI divergence for confirmation. However, both divergence and confirmation source and length are the same.

The indicator does not depend on intervals. It focuses directly to divergences on the indicators.

Roadmap:
- MACD divergence integration
- Stoch RSI divergence integration
- Seperation of indicator confirmation modules and divergence base indicators in terms of length and source
- Implementation of exaggerated divergences

27 sept. 2018

Notes de version

Divergence lookback option added.
Confirm inputs renamed for clarification.

27 sept. 2018

Notes de version

Divergence of RSI, CCI and %R source and length for Long, Short signals separated.
Confirmation of RSI, CCI and %R level of source and length are seperated.

27 sept. 2018

Notes de version

Switch between show signal types added. You can now show the signals for Both, Long/Buy Only, Short/Sell Only and None

ATTN: As this strategy catches the divergences regarding indicators, each pair and each interval of the related pair has to be configured separately. Default configuration does not applicable for every pair and interval. For example, you can adjust the strategy for 1h interval of BTC/USD with nearly 100% accuracy however the signals will appear within long terms. In addition to this warning, as I have mentioned int he main description, the nature of the divergences does not let signals occur after opposite of each signal. So, if there are short signals keep appear on an up trend, this usually means, a considerable short (big dump) is on the way as the divergence occur several times.

28 sept. 2018

Notes de version

-MACD Divergence catcher added. Try it and love it.
- Default divergence source has been switched to MACD only.

29 sept. 2018

Notes de version

- Divergence calculation algorithm has been improved. It is now more accurate.
- Correlation option with RMI has been added. (Less signals but very sensitive.)
- Default settings have been updated in order to get better results for XBTUSD on Bitmex.
- Divergence source indicator options have been seperated as long, short or both.

I know it is now very detailed options but this is necessary in order to adapt this study for nearly every pair.

30 sept. 2018

Notes de version

- Divergence calculation and confirmation algorithm have been improved. It is now very accurate. With this update you will be able to see divergences in short intervals better. Try to raise divergence lookback option in short options for probably better results. Short interval = Forewarned is forearmed!

Roadmap update:
- StochRSI as divergence source
- OBV as divergence source
- Demand Index as divergence source
- Include divergences occur between bands of related indicators like RSI, CCI or Williams %R

1 oct. 2018

Notes de version

- Divergence search and confirmation algorithm updated.
- OBV and Stochastic added for divergence sources.
- "Exclude Mid Band Divergences" option has been added. (This will ignore the divergences which occur between defined levels of eligible indicators like RSI, CCI, %R and Stochastic)
- Selecting source and length of indicators for long/short individually has been removed.
- All confirmation options have been removed due to planned entry/exit point labels.
- Code has been shortened and the structure has been improved.

Roadmap Update:
- Demand Index for divergence source.
- Labels for optimal entry and exit of positions.

1 oct. 2018

Notes de version

- Minor update

2 oct. 2018

Notes de version

- Demand Index added as divergence source.

Roadmap Update:
- Optimizing Long and Short entry points.

Very close to perfection!