Clients often write to me asking for my recommendation about the divergence indicator or combination of indicators that is the most accurate. There is no clear answer to this question because, first of all, there are many market phases and no universal indicator works equally well in different conditions. The second point is that your trading preferences will influence your choice of indicator. For example, if you prefer scalping strategies, an indicator should be fast - even to the detriment of signal accuracy. If your trade target is 100 pips or more, signal accuracy is more important than speed and so on. Giving a straight answer about indicator combinations is not easy so we might be able to make this easier by creating an algorithm. Our company has developed Divergence Constructor, which combines signals from 35 divergence indicators. We have included divergence indicators in this list and it is based on the most popular and standard user indicators. Divergence Constructor Description: http://iticsoftware.com/divergence-constructor.pdf Download link: https://s3.amazonaws.com/iticsoftware-products/divergence-constructor3.0.zip Divergence Constructor can create unique and universal indicators by using the signals from several indicators. Universality of indicators lets you develop a unique strategy which will be more effective. As our tool doesn't need you to buy several indicators you can save money. Choosing a combination will allow you to buy just the indicator you need. The most important factor is not having to use the time to select combinations but you can review them all. How to choose the indicators is the next most important aspect. Investigating all the possible combinations of the 35 indicators would take too long. All of the forex strategies can be divided into two types: the strategies that have targets up to 10-30 points and those with targets of 50 and more. 10 - 30 point target strategies A combination of a momentum indicator and a volume indicator and (or) a market volatility indicator is best suited to develop this strategy. You will also need an indicator that works well with the trend and a support and resistance level indicator. Indicator gradation can be found here: http://metatrader-indicators.com/2012/07/11/super-divergence-indicators/ As you've already guessed, we are going to open and close positions on support and resistance lines, or next to them. Support and resistance lines are also a good indicator for placing a stop-order. If you want to analyze possible resistance line breakouts on the signal of a hidden divergence then you should use the indicator that works well with a trend. Let's investigate an instance of building a scalping strategy for the EURUSD currency pair with a M5 timeframe. The momentum indicator is I and the volume indicator is OBV. You can see that the indicator gives quite accurate signals at the first approximation. Settings for Divergence Constructor DrawRegularDiv = true DrawHiddenDiv = false; we deactivated the hidden divergence because it is a signal for determining the trend duration. Our task is to find reversal zones. CCI.On = true OBV.On = true Other divergence indicators = false Our next stage is to look to change the indicators and make comparisons between signals over a period spanning several months. Depending on your trading preferences you can add more indicators or filter inaccurate signals but it will decrease the number of accurate signals too. As previously mentioned, I would recommend using resistance and support lines to specify the exit and entry points and where to place the stop loss order. You can use the indicator i-BJF-SupResLines-Sig.mq4 for this job. Using the indicator that will work well with the trend will determine market conditions. For instance, we can use MACD. We will examine trend continuation signals - signals of a hidden divergence. The Divergence Constructor settings DrawRegularDiv =false DrawHiddenDiv = true MACD.On = true Other divergence indicators = false The indicator will show us areas when the market trend tends to last. Strategies appropriate for targets greater than 50 points Volume and trend indicators can be combined and this is more suitable for these strategies and using support and resistance lines as entry points is also recommended. As price nears the line you should assess the signal of the hidden divergence and decide if the trend is going to continue or if you are better off closing or reducing the position. You should also carry out analysis not only on the timeframe you are using for trading but on older timeframes too. 60% of the reason for the success of any automated or manual strategies is a well-chosen combination of indicators. Then you need to create money management rules and further options to make a more successful strategy. Visit our web page and read more about standard options, which we can add to your strategy: http://iticsoftware.com/extra-options Good luck.
pixelskylines
2087
izzy806
blakekathryn
stormborns
andulkaphoto