The purpose of this indicator is to assist users in detecting bullish divergence across any time frame. Divergence is the main component of my methodology, this on display at Blockchain Education (charts, calls, etc..). This is not a signal script, it is purely for educational purposes and should only be used as an indicator to invest further time in TA.
How to interpret:
When a unique event occurs in the market the logic of the code will trigger and display a green X underneath the candles on your chart. The green X means that the code is detecting bullish divergence. The chart may draw several Xs in one location.
What should I do when an X is drawn:
As this is an educational indicator, I can only recommend that once an X is drawn you should pay further attention to the currency/stock (do further Technical analysis). In some market conditions this indicator can be used and automated as an appropriate buy signal, however due to its primitive nature it can go wrong on the rare occasion.
What time frames is this indicator best on:
This indicator was designed on a 1 hour chart. However, it does perform quite well on the daily, 4 and 6 hour charts. Its performance is acceptable on 15 and 5 min for day trading.
FAQ:
Should I buy when I see a green X?
I will not recommend any purchases without first proper TA. Majority of the time the indicator will correctly fin the bottom however in extreme down trends the code will display fake Xs. Upon proper TA you will see how these are fake, but if you rely on a signal, you may get caught out.
I am getting too many Xs on my chart?
The logic of the code may not support some lower time frames, which will result in a lot of Xs.
Some divergence will complete over a large amount of candles, which can also cause a cluster of signals.
In a down trend occasionally the logic cannot correct interpret the weakness in the market.
Is this indicator applicable to any market?
Yes, although the indicator was developed based on Crypto Currency markets, the indicator is usable and in most instances more accurate on traditional markets.
Will there be future updates released?
As the code ages and further development is made, updates including increase accuracy for automation and signals may be released. This is really released for educational support. these updates may be released under a separate indicator listing.
This is an earlier derivative of current indicator with bullish and bearish divergence with higher accuracy (signal) script. This is for educational purposes only to aid people following my calls and methodology at Blockchain Education.
Images of indicator:
Created and owned by Lachlan Schahinger. (2018)