The indicator is based on finding and confirming the divergence of the MACD oscillator and the asset price.
Divergence is a divergence between the directions of the asset value and the trend line of the indicator, which may indicate an upcoming trend change.
Bullish Divergence SrgArt DiverX
A bullish divergence is a decrease in the lows of the asset price and an increase in the lows of the MACD indicator. In the screenshot, this phenomenon is marked by trend lines.
It is checked that the last oscillator value is less than the previous one, which may indicate that the price has reached a minimum.
Bearish Divergence SrgArt DiverX
Bearish divergence is an increase in the highs of the price followed by a decrease in the highs of the MACD indicator. It is marked on the screenshot with trend lines.
It is checked if the last value of the oscillator is greater than the previous one, which may indicate that the price has reached the maximum.
Signals to enter a position
Once a divergence is found SrgArt DiverX checks additional conditions for position entry, after which the bot receives a signal to open a trade.
The indicator can be found in Filters in the bot settings.
This tool is an author’s development by SrgArt.
You can find SrgArt indicators with subscription in our Marketplace.
