Using Stochastic Divergence Indicator has been a favorite of traders as indicators embedded in the use of a simple, straightforward, and can be used in detecting the saturation point. Well, now we add a filter further by using divergence as edge tool of stochastic custom indicator.
What are the advantages? Better than using the default stochastic metatrader. Can recognize whether the strong trend can still survive, or the trend is already saturated and return a reversal. All the techniques and strategies can be applied in stochastic divergences.
For the time frame we are trying to use in TF 30. Maybe someone wants to try a different time frame, but tend to be focused to test time frame 30. It is considered good enough to detect any changes in the market, not oversized nor too small. While the pair itself, the indicator does not need a special pair, can be relied upon in all pairs and were able to detect an error signal or a false signal.
Stochastic Divergence Indicator considered leading indicators. Because it is preceded market movements and can detect whether the price could still be in progress or has been completed and the economic reversal or reversal. Shaped oscillator making it easier for traders to know the area saturated trend and the trend is strong current.
His trademark has enough color. With an area of divergence is quite obvious, making the indicators chosen by the trader in general. If you know the lines are pinned visible light green color then the trend remains strong to bullish. However, if there appears brown stripe possibility for bearish positions.
May be advisable to split the two systems. Because of its indicators could be 2 different focus, who first became pro sideways / consolidation and the pro trend. When there is a sideway you can take advantage of the area is saturated with marked point over.
But in case you can use the divergence trend that looks like the picture above with the green and brown lines. As you know the trend will form a bullish or bearish, if it looks bullish focus on the emergence of the green line, whereas if the trend is bearish focus on the appearance of brown lines.
Stochastic Divergence Indicator is an invaluable tool in detecting the presence of a saturated trend. Besides as the sustainability trend filter area, Stochastic Divergence Indicator is able to recognize false signals that can trigger confusion trader. By relying on Stochastic Divergence Indicator, traders will more easily recognize the current market situation. Stochastic Divergence Indicator used to help analyze your trading.