Multiple Divergences FREE open-source indicator

PeterO · Mar 17, 2020

Hey! I'm new here, so I thought it would be ok to join not with empty hands.

For those of you who like trading divergences, here's my Multiple Divergences script: if you spot divergence on indicator of your choice, it can always be a fake, but if you see it on 8 indicators at the same time, there is a chance it really means something:

https://www.tradingview.com/script/LXz2NC1b-Multiple-divergences-NON-REPAINT-by-PeterO/

It is open-source, I hope you'll find it useful.

DarthSidious · Mar 17, 2020

Hey, welcome! I don't really trade divergences, but this is really cool. So, thanks!

SunTrader · Mar 17, 2020

Appreciate your effort, although I am not a TradingView user, but RSI/Stoch/CCI are all just different flavors of the same "ice cream" oscillators. It doesn't matter how many multiples used if underneath they are basically the same.

What does matter is the duration of the divergence. Shorter is better - to catch turns.

BTW why the chart - with no indicator plot?

PeterO · Mar 18, 2020

SunTrader said:
BTW why the chart - with no indicator plot?

There are 11 indicators being checked for divergences - imagine the mess displaying them all would make

That's actually the goal of this script: display only the final result, which is the total number of divergences spotted. To keep it clean.

SunTrader · Mar 18, 2020

PeterO said:
There are 11 indicators being checked for divergences - imagine the mess displaying them all would make That's actually the goal of this script: display only the final result, which is the total number of divergences spotted. To keep it clean.

Sorry more of the same, whether they are displayed together or separately, is still just more of the same. Now if it were based on a trend indicator and a momo one and an OBOS one that's different.

PeterO · Mar 19, 2020

SunTrader said:
Sorry more of the same, whether they are displayed together or separately, is still just more of the same. Now if it were based on a trend indicator and a momo one and an OBOS one that's different.

There are 11 indicators there and you can select with one checkbox click which one to include and one to ignore. So you could put together your set of indicators for divergence check, for example: RSI, MACD, OBV and CCI. All of them are from different categories.

IamaMars · Mar 19, 2020

I am always glad that people are not just engaged in trading, but try to form their own methods for analyzing the situation, and this is really a huge achievement. I think that in general each algorithm can be called a worker, the main thing here is to choose exactly what suits you. I think that since you've invented it for yourself, respectively, you've tried to do everything in such a way that it really brings results. I think you can be proud of the fact that you have invented a working algorithm, and I agree to share it with others, this I can call real trading, which implies not only a tough business, but also mutual support, which can really support even in the most difficult situation.

Ethilaloth · Mar 20, 2020

I don't want to upset you or criticize you, but for the indicator to be called effective, it is not enough just to combine them into one mechanism. After all, each indicator has its own elements and components, which define different entry points, and you need to have an excellent understanding of the market and, as it seems to me, mathematics in order to make it all look like a real system, which is really capable of finding potential entry points to the market. Once again, I would like to reiterate that I would by no means simply criticize, and of course I am glad that so many traders are now appearing who are interested in understanding the market to the fullest. But just how did you make sure that your system is really working? Did you run any tests, maybe on a demo? I'd really like to see some statistics.

Karin42 · Mar 20, 2020

I like that idea, well, really, it looks impressive. It's cool to know that you can create something like that, and I think that you can clearly see the handwriting of a person who is interested in trading, but a little disappointed with the conditions that are provided for traders today. Well, I've seen before that traders try to develop their own formats for earning money, but usually it was a list of certain rules or nuances that should be paid attention to when trading, but this is the first time that a trader has developed an indicator on his own - it seems to me that it looks very interesting, so all I can say is congratulations, because it is thanks to traders like you that our business is still alive and gives hope that your life will be better.

PeterO · Mar 22, 2020

Ethilaloth said:
I don't want to upset you or criticize you, but for the indicator to be called effective, it is not enough just to combine them into one mechanism. After all, each indicator has its own elements and components, which define different entry points, and you need to have an excellent understanding of the market and, as it seems to me, mathematics in order to make it all look like a real system, which is really capable of finding potential entry points to the market. Once again, I would like to reiterate that I would by no means simply criticize, and of course I am glad that so many traders are now appearing who are interested in understanding the market to the fullest. But just how did you make sure that your system is really working? Did you run any tests, maybe on a demo? I'd really like to see some statistics.

This is an indicator showing divergences. How many of them happen at the same time. Period.

Having said that - it is not a strategy, which has been backtested. It is an indicator, which you can use to add to your analysis while manual trading. Minimum homework you need to do, is to apply it to the market+timeframe you are trading, and play around with the parameters, which are set out in the script.

Moreover, it is open-source, so you can add it to whatever other indicators and logical rules you find valid. And you can backtest it - everything is available on TradingView.

Last, but not least - please read my indicator description. It says that divergences cannot be traded alone. They have to be added to other information you have and are using for trading.

Even if it is not enough for a standalone money-making machine, at least the divergences part is done right.