Xtreme Divergence Indicator (3 Sets)

Xtreme Divergence

Xtreme Divergence Indicator is combination of three divergence indicators, which gives great results when used together. The primary indicator is a custom indicator and another two additional indicators are provided which are RSI and MACD based. Though RSI and MACD logics are freely available, these have been altered to mach the primary indicator and color codings have been done to display overbought and over sold zones.

IF YOU THINK – MACD and RSI does your job, DO NOT BUY THIS INDICATOR

But, if you need something better, that displays divergence in a stronger and prominent manner, it can bring in confidence in your trades.  However, the indicator is not a strategy and do not give buy and sell signals. Rather, this is a market analysis and predicting tools. Let’s discuss how it works:

Xtreme Divergence

The three blue wave columns are the Part of the Xtreme Divergence Indicator setup. The first and second are the RSI and MACD based column waves respectively. While, the third one is the primary custom indicator. You can see from the above image, the divergence displayed by the primary indicator is the strongest. The Yellow swing line, when turns yellow, shows a possible reversal trend. Works best for long term investments and trend analysis. Here is another example on AAPL chart below:

Here, you can see two divergences, One in December 2023 after which price started dropping and second one in March to May 2024 after which price started reversing.

Recommended Time Frame: 1 hr or more upto Monthly

 

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