I’ve been using divergences for as long as I can remember in my trading career (not that long actually :D).
Divergence is one of my confirmations for my entries and somehow I’ve been very comfortable with them.
So far I’ve been using Slow stochastics to look for divergences, but as of lately I’ve been also watching MACD, just for curiosity. Well it turns out that from my little time observing, MACD seems to show more frequent and accurate divergences.
My question is, is there an oscillator that serves better for this purpose? Which oscillator do you guys use?
Any oscillator can and will show convergence or divergence. The best one to use is macd since thats the whole reason it was designed. If you dont already know, the macd abbreviation should be a hint.
MACD spots those differences between two moving averages. While the divergence the poster speaks of is in relation to the oscillator and the highs and the lows of price itself.
OsMA (8/15/9), confirmed with a slightly faster MACD. For reversals signals, you’ll often see the initial divergence in OsMA, then you often get a same peak diverence in the OsMA histogram just as the MACD divergence kicks in.
usually i use CCI for divergence, it’s works
if I am looking for 100 pips or more, I’m looking divergence on 4H chart
if I am looking for 50-70 pips, I’m looking on 30m or 1H chart
O ya, I’m only playing Guppy