Hello, which indicator should i use for divergence? shochastic or rsi? sometimes one gives me divergence and the other one doesn’t.
Practice both of these indicators; then judge your result! I think, that would be useful in your trading.
Hi luke,
I did that and both seems to work very well but they don’t coincide. I started using both.
So, you are trying to build a trading system based on these two, isn’t?
no one can decide that for you i think. you should try both out and decide what suits your trading style.
Yeah, i find divergences so good, especially combined with pa and fibo.
Exactly it is! All the best mate; keep practicing & updating your own trading skill.
You should always look at the full picture - not just a single indicator.
The Stochastic and the RSI are momentum indicators.
Those are like the speedometer in your car. They tell you how fast a trend is moving.
You’ll need a different indicator to tell you the direction of the trend, and a third one to tell you the strength of the trend.
One setup would be:
Stochastic (trend momentum) + EMA (trend direction) + ADX (trend strength) + Keltner Channels (volatility).
Now, it can be a pain to monitor 4 indicators at once. That’s why I suggest you either automate a part of your trading, or create some script that watches these indicators for you.
Alternatively, you can use trading software that monitors these indicators for you, and finds divergences automatically. One such option is to use a MT5 script. Another option is to use a standalone solution like Mushino (currently limited to crypto only).
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