divergence
5 replies
Ali
3 years 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.
tomas262
3 years 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
Ali
3 years 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
hankeys
3 years 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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Mr Omi
1 year ago #281895
Do you have RSI divergence?
tomas262
1 year ago #281931
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