Setups & Trends: Real-Time Divergences Confluence

2 oct 2022

Real-Time Divergences Confluence

• Divergences occur when a technical indicator, like an oscillator, moves in the opposite direction of the price.
  
• They often serve as an early warning of a trend reversal (via regular divergence signals) or trend continuation (via hidden divergence signals).
  
• These divergence signals are plotted directly on the price action chart, with bullish divergences flagging below the current candle and bearish divergences flagging above the current candle.
  
• Regular and Hidden Divergences flag in real-time.
  
• This indicator evaluates a total of six (6) oscillators simultaneously to identify divergences compared to price action.
  
• As many as twelve (12) separate oscillators were initially evaluated for inclusion in the Real-Time Divergences Confluence system.
  
• Based on extensive manual backtesting over multiple timeframes and assets, only six (6) oscillators met MetaWorld Crypto's reliability threshold for use in our trading system.
  
• Each divergence is assigned a strength rating (1 to 6) based on the number of oscillators that simultaneously detect a divergence.
  
• The real-time nature of the divergences will cause the divergence line to re-plot with each successive candle until the divergence confirms at the end of the trend.
  
• The divergence strength rating will also continuously update with each successive candle based on the number of divergences detected at that time.
  
• When the divergence confirms, the divergence line and label on the chart will update from a lighter/transparent shade to a darker/opaque shade.
  
• Use the color selector to change label and line colors. Use line selector to change the line style (default: solid line).
  
• Toggle (Regular Divergence (Bull)) to display regular bullish divergences. Default (Off).
  
• Toggle (Regular Divergence (Bear)) to display regular bearish divergences. Default (Off).
  
• Toggle (Hidden Divergence (Bull)) to display hidden bullish divergences. Default (Off).
  
• Toggle (Hidden Divergence (Bear)) to display hidden bearish divergences. Default (Off).
  
• Always practice risk management: Use proper position sizing and a stop-loss on every trade.
  
  * This tutorial is intended for educational purposes only.