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Inputs
Minimum Indicator Units:
This is the minimum difference in
value between the two peaks of the
the indicator that would give a signal.
The higher the value the more
discerning about divergence.
Minimum Price Pips:
This
is the measure of the price action. This
is the minimum difference in price
between the two peaks of the
Stochastic Oscillator before a valid
divergence
is alerted. The higher the
value the more more discerning about
divergence.
Minimum Back Bars:
This is a
measure of how many bars to go backwards
from current bar to
find a cross of the Stochastic RSI
either up through 20 for a buy or down
through 80 for a sell. The
lower the value the value the more
discerning
about divergence.
RSI Filter:
If set to true a trade alert will be
shown only if there is divergence AND
a cross of the Stochastic RSI through 80
or 20. If set to false an alert
will be sent when only a divergence
alone is detected and no cross
of the Stochastic RSI.
RSI Buy Level:
This is the value of the RSI which when
crossed issues the buy signal.
RSI Sell Level:
This is the value of the RSI which when
crossed issues the sell signal.
Getting started
When you attach the Destiny Pro
Divergence Indicator to a chart you will
see two sets of horizontal
lines. The blue lines are
looking at the valleys of the indicator
and the low values of the price candles
The red lines are looking at the
peaks of the indicator and the high
values of the price candles.
In between the horizontal lines you
will see a trend line. In the case
of the blue horizontal lines
you may see a trend line on the
indicator which is trending up and a
trend line on the price
candles going down. This is
divergence. When the slope of both
lines are going in opposite
directions. If they are going
in the same direction then there is NO
divergence.
See the examples below to see what
the horizontal lines look like as well
as the trend lines.
How to trade with the Destiny Pro
Divergence Indicator
Attach the Destiny Pro Divergence
indicator to a currency pair on 15 min,
30 min, 1 hour. 4 hour and Daily charts
Divergence detected on the longer
time frames signify a stronger signal
and larger profits can be obtained.
Once you get an alert you need to
look at the currency pair and the time
frame you got the alert on.
If the indicator touches or goes up
through 20 it is a buying opportunity or
if it is going down through
80 it is a selling opportunity.
You can set the Destiny Pro
Divergence Indicator to be as discerning
as you want about what it considers
divergence by using the settings in
the inputs described above. The
less discerning the more signals you
will get. But some may not be
the best signals if you take too many.
Daily trend direction
To get the highest probability for a
winning trade it is best to only take
divergence signals in the direction of
the
daily trend. For example.
If the daily trend is long then only
take a divergence trade when the Destiny
Pro Divergence is telling you that
divergence is detected and it is a long
signal. Do the opposite for short
trades. This is not absolutely
necessary but it is a good idea as more
winning trades will occur
if you trade in the direction of the
daily trend.
Example 1.
Destiny
Pro Divergence on GBPJPY 1 hour
chart
Set up: Destiny Pro
Divergence Indicator shows a price
reversal is imminent on the GBPJPY 1
Hour chart
Red horizontal lines show a trend upward
in price yet indicator peaks show
downward trend signaling
a sell.
+256 pips
Example 2.
Destiny
Pro Divergence on GBPUSD 15 minute
chart
Set up: Destiny Pro
Divergence Indicator shows a price
reversal is imminent on the GBPUSD 15
minute chart
Blue horizontal lines show a trend
downward in price yet indicator peaks
show upward trend signaling
a buying opportunity. Indicator crosses
up through 20 and enter market for
+161 pips
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