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PTS-Precision Divergence Sell Finder for MetaTrader 4 & 5
Designed to seek out bearish divergences that occur in the Demand Index Indicator over a multitude of different look back lengths
Tired of all the hard work seeking out nice topping patterns for meaningful divergences? Let this product save your valuable time
Saves hours of time to find divergences in a rapid and precise manner. This product can save you LOADS MORE time
PTS-Precision Divergence Sell Finder on speeded up data - Watch for the indentifications in the lower panel |
Tutorial Video basic for the Sell finder. If you want to see the Precision Divergence Buy Finder please click here
PTS-Precision Divergence Sell Finder tutorial shows the moves down after bearish divergences in ETHUSDNote this video is not shown on the MT4 and MT5 platform but the effects will be similar |
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Screenshots on MT4 and MT5
FT-SE 100 futures on MT4 shown below in a 1 hour chart |
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Below shows a top peak on AUDCHF on MetaTrader 5 |
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Topping area found in the Taiwan index |
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Three peaks perfectly identified in Bitcoin Cash |
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Two peaks in BCHUSD perfectly identified |
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Scroll down for disclaimer and payment buttons
MT4 Version below
Free trials are available click image to go to MT4 marketplace to download |
| Forget Black Friday |
| This offer is for BLACK NOVEMBER crazy prices |
| Click below to see all options for shorter licenses |
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Listed on MT4 market place on September 15th 2023
MT5 Version below
Free trials are available click to visit MT5 marketplace |
| Forget Black Friday |
| This offer is for BLACK NOVEMBER crazy prices |
| Click below to see all options for shorter licenses |
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Guidelines for using Precision Divergence Finder in MetaTrader 4
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PTS Divergence Sell Finder - otherwise known as Precision Divergence Sell Finder. Description for MetaTrader 4 useage |
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The Precision Divergence Sell Finder Indicator by Roger Medcalf of Precision Trading Systems. As the name suggests this indicator only finds sell signals. When using this indicator on MetaTrader 4 in most cases you will be receiving tick volume instead of trade volume. The effect of this will be to reduce the volatility of the Demand Index Indicator making it fluctuate by smaller amounts than it would if real trade volume was coming in. To compensate for this is it required to use smaller values in the "difference" feature of Precision Divergence Sell Finder. Risk control is essential and risking more than 1% to 1.5% of your capital from entry price to stop would not be advised. PTS Divergence Sell Finder accurately measures the number of divergences which have occurred in Demand Index, which is a volume based indicator. This is a histogram style indicator for subgraph two, which plots spikes which appear like stalagmites coming up from the base. This product measures up to twenty divergences at once using multiple look back period up to a maximum of 200 bars. A total of twenty look back periods are scanned on every bar and these are hard coded non adjustable. The length of Demand Index is user adjustable but it is suggested not to wander too far below the setting of length 20. The second user adjustable field is "difference" and this represents the difference between Demand Index now and Demand Index "N" bars ago. (N being 20 different look back periods) You will understand that a length 8 Demand Index produces a much more volatile plot than a 60 period plot. For this reason you can find short lengths of "DI" and small "difference" values will produce many more signals of divergences as there is higher volatility in the underlying indicator. You will observe this when you use it. You can set it to give hundreds of insignificant values but it is best used so you just see the significant ones by following the guidelines below. Consider this like using a 20 period MA on a 30 second chart compared to a 20 period MA on an hourly chart. The hourly MA change of direction is much more meaningful and important. Suggested settings for various lengths (when TICK volume is being used) Di lengths less than 12 are not generally recommended for finding divergences Default setting is DI Length 32 and Difference 0.85 DI Length 20 = difference of 0.7 - 6 DI Length 30 = difference of 0.6 - 5.8 DI Length 40 = difference of 0.5 - 5.6 DI Length 50 = difference of 0.3 - 5.4 DI Length 60 = difference of 0.2 - 5.2 DI Length 70 = difference of 0.1 - 5 Suggested settings for various lengths (when TRADE volume is being used) Di lengths less than 12 are not generally recommended for finding divergences DI Length 20 = difference of 7 - 15 DI Length 30 = difference of 5 - 10 DI Length 40 = difference of 4 - 9 DI Length 50 = difference of 2 - 7 DI Length 60 = difference of 1 - 5 DI Length 70 = difference of 1 - 4 You input manually smaller numbers such as 0.44 or 1.53 and these are worth testing if using long DI lengths above 100 up to 1000. DI Length maximum is 100 - also it needs 100 bars to form an accurate plot 8- As I designed this myself and have been using it for more than fifteen years you can trust me when I suggest to stay reasonably close to the default settings. Output relevance. The minimum value is zero which means there are no divergences found, you can then find values from 1 to 20 which is a count of the number of instances found. Paradoxically it is not so significance if the number is very high or very low as a major bottom occurring on a multi month low may just show a reading of 1 and some minor mid up trend dip might show a reading of 9. Be suspicious if you see too many large readings of 12 to 18 reoccurring as it is likely that the indicator is plotted on a market in a very long term and rapid uptrend. Execution of trades. Exercise caution with this product. Always always use a stop loss. Something like 3 to 7 times a fifty period average true range for example. Whilst it is often possible that a spike appears exactly at the precise high of the week or year and could be the only one you see all year it is risky just to sell it instantly as some markets produce several failed signals which continue lower. The safest and least risky method is to wait for the trend to begin rising after you see a divergence. This is subjective to your own definition of how to measure the trend as "rising" but I would suggest waiting for a 15-35 period Exponential average to turn downwards before selling. Once the trade is entered you can implement a trailing stop to allow maximum potential upside, and if your style is one of wanting to take quick profits, then it is wise to take only some partial profits and give the decline a chance to go lower and exit the remainder when the trend changes, which if the move was picked up near the absolute peak could be a long time in an uptrend. Sometimes you might wait up to twenty five bars after the divergence is seen before the trend begins falling. Much longer than this an it gradually negates the signal as it shows buyer have become stronger and the safest decision is to stay out of the market. It is not unusual for the divergences to mark the exact high of a market and this low can lead to a large move up. There are however frequent "failed divergences" and these can be treated in the same technical analysis manner as a failed head and shoulders or failed double bottom where the failure to rally indicates a likely hood of a continuation lower, meaning it is time to cut a loss. This indicator only gives buy signals. Every single signal will be given in some degree or another of degree of up trend at the highest high price. Market selection is important. Avoid markets in an endless up trend. Best results are on liquid markets in a good long term down trends that has frequent rallies, you can observe the past signals and often history repeats with a good previous signals tending to indicate that future signals may also be good. (This is not certain of course) This is also true of a market showing several historically bad divergence signals leading to more bad signals. If the past performance of this indicator is poor on the market you are viewing, then move to another market until one is found where the readings show good rallies after the signals in historical data. Time frames. This product can be applied to any time frame of market but be aware as is stated above, the slower time frames yield more valid signals and shorter time frames lead to more randomness and noise ridden plots of lower significance. That said it provides a valid reason to enter a trade and can give good results providing good stops and risk control are used. I have seen plenty of valid signals on 30 second charts right up to weekly charts. Idiosyncrasies. It can often be seen that multiple divergences occur over a range of ten to thirty bars during a very gentle spiky kind of price decline. This can be treated in the same way as above - waiting for the trend to rise after the last divergence occurs is the way to play it. Groups of divergences can indicate some patient insider selling patterns in anticipation of some bad news which they are short selling. Thanks for reading this and please read it a few more times to fully understand the points mentioned. After that please spend some time changing settings and markets to fully appreciate how it operates. What to expect Using this product you will see some spectaculor calls that pick the precise high of a big move up AND you will see signals that just go flying up. Seriously that is how it is. This is why stop losses are essential coupled with good risk management. |
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Detailed additional information is provided on this pages Risk management in the sense of protection from market crashes with guidelines on stops to enter shorts. Optimal trade size for maximum gains Beginners and intermediate traders guide tutorial in six parts with examples diagrams and a few multiple choice questions |
Disclaimer
When purchasing this item you agree that you have read the disclaimer above |
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| Admin notes |
| Page created on September 9th 2023 - New responsive page GA4 added canonical this. 5/5 html sm links added - responsive- 32 degrees outside today |