Parameters description and demo information:
RSI Divergence Scanner
MACD Divergence Scanner
How one can get probably the most from MACD|RSI divergence scanners
Divergence indicators present when pattern is weakening and lets you being conscious of potential ending of a pattern, so you should utilize them to search out pattern reversals for coming into the commerce or taking partial earnings out of your open orders.
If you happen to already commerce based mostly on a divergence technique you might be good to go, all you want is setting the scanner parameters based mostly in your buying and selling technique, and let the scanner do the arduous work of looking out the symbols and timeframes and discovering the divergences for you.
If you do not have earlier expertise in buying and selling based mostly on divergences, first it’s a must to discover a technique appropriate for you and getting grasp in it and be sure you could make earnings from that technique. Then you should utilize the dashboard to save lots of your time from discovering the divergences manually and let the dashboard scan the symbols and timeframes for you.
There are many articles and movies for studying the divergence buying and selling that you’ll find them by a little bit of googling, and these are some first rate YouTube movies which you can begin with them:
The primary utilization of the dashboard is when you’ve a worthwhile divergence technique and need to maximize your earnings by discovering extra buying and selling alternatives with out spending a whole lot of time looking out by totally different symbols and timeframes. You can even use it to observe divergence buying and selling or testing your divergence technique, however do not begin the dwell buying and selling earlier than you’ve a well-tested technique with clear guidelines for coming into and exiting the orders.
Some notes about divergence buying and selling:
Buying and selling based mostly on divergences works greatest in giant swings or within the course of sturdy traits (when divergence occurs in pullbacks). Divergences aren’t dependable within the vary (sideways) markets or in opposition to the sturdy traits. Divergences that occur within the essential areas of chart like help and resistance zones, provide and demand zones, Fibonacci ranges and … are extra dependable indicators of ending the pattern. It’s a good observe to search out divergences in bigger timeframes after which seek for commerce indicators in smaller timeframes. It reduces your cease loss distance and provides you a greater reward to threat ratio. Try the primary pattern course in giant timeframes, and ignore divergence indicators in smaller timeframes which can be in opposition to the primary pattern. Divergence is an indication that reveals the pattern is shedding its momentum, not the signal of rapid finish of the pattern. Usually merchants enter a commerce too quickly, proper after they noticed the divergence. So have persistence and look ahead to some confirmations for pattern reversal like these: Breaking the pattern line, shifting common, increased low or decrease excessive with sturdy candles (and ideally retesting them) Candlestick patterns Robust reversing candles Spike outdoors Bollinger Bands Every other confirmations that your technique suggests
Some ideas for utilizing the dashboard:
After adjusting the scanner parameters, save them by the “Save” button within the “Inputs” window, then you possibly can simply load your required settings subsequent time you run the scanner. Add your affirmation indicators to default or customized chart templates, so once you click on on dashboard cells, you possibly can see the divergence sign alongside along with your different technical instruments within the newly opened chart. You possibly can set the dashboard to robotically open charts for brand new alerted divergences. The dashboard can save the final alert sort that you simply set for every image (please set the “Allow alert for symbols on startup” parameter), so you should utilize the dashboard as a fast reminder of your final pattern evaluation for various symbols within the subsequent day or session that you simply begin buying and selling once more. Within the MT5 model, MACD|RSI indicator robotically will probably be added to the opened chart, however for MT4 you need to save the MACD|RSI indicator on default and customized templates (with enter parameters equal to MACD|RSI parameters within the dashboard settings). Then the dashboard attracts the divergence line on the indicator within the new chart.
Filtering and fine-tuning the pattern waves:
There are a number of filtering and ratio parameters that you should utilize them to reduces the variety of indicators and enhance their high quality. These parameters are:
Use Shifting Common filter Discover solely divergences which can be in overbought/oversold ranges Solely discover divergences that occur after an extended pattern Alert provided that Divergence occurs in S/R zones Ratio parameters within the “Common Divergence Ratios” part Parameters within the “Robust Reversing Candle Settings” part (if you choose the “Robust Reversing Candle” choice within the “Affirmation Kind” parameter) ZigZag Settings MACD|RSI Settings
Use above parameters to scale back the variety of divergences that do not slot in your buying and selling technique guidelines and make a steadiness between variety of indicators and their high quality.
Try your failed trades to see which filters can cut back the variety of indicators that result in failed divergences.
Some examples for the way to use filters:
In case your technique requires that you need to commerce on divergences that occur after an extended pattern, then allow the associated parameter and set its worth. If after many trades you discover out that your profitable orders are totally on a particular sort (form) of pattern waves, you should utilize ratio parameters to solely obtain alert for divergences that occur after that sort of pattern waves. The dashboard makes use of the ZigZag indicator for figuring out the pattern waves, so you possibly can change the ZigZag parameters to extend or lower dashboard sensitivity to cost fluctuations. For instance, if you do not need dashboard finds divergences that occur after small pattern pullbacks, you possibly can enhance the “Depth” worth to scale back the ZigZag sensitivity. Additionally, you possibly can take a look at the ZigZag indicator on totally different symbols and timeframes to search out the perfect values for its parameters after which use these values within the dashboard settings.
Contemplating the help and resistance zones:
If you’re acquainted with the help and resistance idea in buying and selling, set the scanner to search out the S/R zones, and you should utilize them to determine which one of many divergences detected by the dashboard are a legitimate signal of pattern reversal. As well as, you should utilize S/R zones for setting order stop-loss and partial take-profit ranges.
You possibly can see the help and resistance zones for all symbols and timeframes by clicking on their associated cell of the dashboard.
You possibly can positive tune the zones by the dashboard parameters and choose the zone varieties that you simply need to see on the charts.
The dashboard requires at the least 350 candles in a chart to search out the divergences, and within the first run of the dashboard it takes a while to obtain the historical past information for all symbols and timeframes that you simply loaded within the dashboard.
If Metatrader caught in loading the information for dashboard, please take into account the next gadgets:
Make it possible for Metatrader is linked to the server and it could load the historical past information. Open the chart of some symbols and see if the Metatrader updates their chart or not. If the charts of the symbols which can be loaded within the dashboard by no means opened earlier than (like operating the dashboard on a newly put in Metatrader), it might take a couple of minutes to load the wanted information, however the dashboard will load quick within the subsequent runs. You possibly can open the chart of these symbols and switching between timeframes to verify Metatrader load the historical past information. Within the header of the dashboard, you possibly can see which image and timeframe is loading to the dashboard. So should you see the dashboard stays on an emblem for a very long time, you possibly can open its chart manually and swap between timeframes to obtain the information for that image. Run the dashboard with lower than 10 symbols and some numbers of timeframes to verify it really works regular, after which enhance the variety of symbols and timeframes. If dashboard does not have sufficient information for an emblem, and it could’t obtain the information, it writes a message within the “Consultants” tab of the “Toolbox” window. You possibly can manually open the chart for that symbols and swap between timeframes to obtain the information. If you happen to set the scanner to load the symbols from “Market Watch” window, checkout the Market Watch window and ensure there’s no grayed out image in its listing. MT4 by default hundreds too many bars for every image on the charts that typically are solely helpful for again testing, and lowering them hurries up the operating of the dashboard. Within the Metatrader choices, “Charts” tab, you possibly can cut back the “Max bars in historical past” and “Max bars in chart” choices to 5000 or much less.
Please let me know should you suppose the dashboard wants a function that will help you commerce extra successfully. I’ll attempt to add it to the dashboard if potential and whether it is helpful for many customers.