Signals Pirate™ Oscillator Divergences
The main inputs for this divergence package are the ‘Lookback Length’ and ‘Indicator Smoothing’. The loockback simply determines how many bars back of any assets price actions will be scanned for divergences, with a lower value creating fewer signals with shorter divergence detection. The smoothing simply allows for any selected oscillator to have the values averaged out to create less choppy data. Within this package you have the availability to alter the settings of all included Oscillators as you would if you added them to your chart individually.
Additionally you can choose to include ‘Regular’ divergences, ‘Hidden’ divergences, or both! Divergences are a great leading technical tool that can help predict potential trend changes as price divergences from the underlying oscillator.
The default settings are the best settings we’ve found so far but you can change them to build your own unique trading strategy. We’d recommend experimenting with these values to find the best results for the asset you are trading, and your own personal trading and investing style.
Direction for use:
1. Use on any asset class and time frame.
2. Select which Oscillator you’d like to apply, and which Divergence labels should be shown.
3. Fine tune the ‘Lookback Length’ and ‘Indicator Smoothing’.
4. Wait for divergences to occur and use these signals to improve your technical analysis! Bullishdivergences indicate a potential move to the upside is coming, where Bearishdivergences indicate a potential move to the downside!