divergence

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Ali

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10 months ago #269105

I’m trying to create a strategy in the AlgoWizard based on divergence but I didn’t succeed.

For finding divergences firstly I need to find valid pivot points based on zigzag then compare the value of price and MACD in 2 recent pivots.

So highest or lowest functions can’t be useful.

I also tried the SQ sample strategy in the AlgoWizard but there is a lot of false signals.

 

 

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tomas262

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10 months ago #269286

The divergences are very subjective. We do not have direct tools in AlgoWizard that can be used to really effectively trade divergences. I mean it can be done but you would have to set a very complex system of many conditions. But you can setup simple ones. I have set up a basic MACD Divergence in AlgoWizard. You can check it whether you find it useful

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Ali

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9 months ago #269294

As you mentioned the divergences are very subjective, I think the validity of a divergence is depending on the validity of pivot points.

If we can detect the correct pivot points, we can use divergences. In the following chart I used zigzag.

Can we import zigzag as a custom indicator and extract the distance from current candle to pivots? some thing like this:

Distance from current candle to First Pivot = 75 candles

Distance from current candle to Second Pivot = 92 candles

Distance from current candle to Third Pivot = 119 candles

Then I can use the follwing formula to detect divergense:

 

The divergences are very subjective. We do not have direct tools in AlgoWizard that can be used to really effectively trade divergences. I mean it can be done but you would have to set a very complex system of many conditions. But you can setup simple ones. I have set up a basic MACD Divergence in AlgoWizard. You can check it whether you find it useful

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hankeys

Customer, bbp_participant, community, 488 replies.

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9 months ago #269315

divergences are very strong signals and we are waiting for them for a long time – https://roadmap.strategyquant.com/tasks/sq4_2914

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