Indicator
bollinger
indices
rsi
atr
signal
macd
"Divergency 1.1_withSourceCode" logo
Divergency 1.1_withSourceCode
5.0
03/09/2025
100
Desktop

📈 Divergency v1.1 Indicator for cTrader: A Comprehensive Guide 🚀

The Divergency v1.1 indicator is a powerful tool designed for the cTrader platform to identify divergences and correlations between price action and various oscillators. This guide provides a detailed description of the code, its functionality, and step-by-step instructions on how to use it effectively. Whether you're a beginner or an experienced trader, this indicator can enhance your technical analysis with customizable settings and visual cues. Let’s dive in! 🌟


🎯 Overview of the Divergency11 Indicator

The Divergency v1.1 indicator analyzes price movements and oscillator behavior to detect:

  • Regular Divergences: Signals potential reversals when price and indicator move in opposite directions.
  • Hidden Divergences: Indicates trend continuation when price and indicator align differently.
  • Correlations: Highlights when price and indicator move in sync, suggesting trend strength.

It supports 12 different oscillators (e.g., RSI, MACD, Stochastic) and allows customization of divergence detection parameters, making it versatile for various trading strategies. The indicator plots signals directly on the chart and indicator area, using colored lines, icons, and text for clear visualization. 📊


🔍 Code Breakdown

1. Indicator Setup 🛠️

  • Namespace and Class: Defined in the cAlgo namespace as Divergency v1.1, inheriting from Indicator.
  • Attributes:
    • IsOverlay = false: Displays in a separate indicator window.
    • TimeZone = TimeZones.UTC: Uses UTC for consistency.
    • AccessRights = AccessRights.None: No special permissions required.

2. Parameters ⚙️

The indicator offers extensive customization through parameters, grouped for clarity:

  • Oscillator Selection:
    • IndicatorSelection: Choose from 12 oscillators (e.g., RSI, MACD, Stochastic).(Normalised to 50 as middle, and result higher for optimisation process)
    • Value1, Value2, Value3: Adjust period, smoothing, and signal line settings.
    • MaType: Select moving average type (e.g., Simple, Exponential).
  • Divergence Settings:
    • Strat: Choose detection mode (Divergence, Hidden Divergence, Correlation, or combinations).
    • PeriodFractal: Set fractal period for identifying peaks/troughs (must be odd).
    • LookBack: Number of historical divergences to analyze.
    • MinCountDivergenceShow: Minimum divergences required to display signals.
  • Zone Analysis:
    • MinBarsValidation, MaxBarsValidation: Define valid bar range for divergence detection.
    • ExtraLevelMin, ExtraLevelMax: Set oscillator overbought/oversold thresholds.
  • Levels:
    • ExtraLevelLine: Adjusts oversold/overbought lines around the 50 level.

3. Outputs 📈

  • Result: Main oscillator value (green line).
  • Signal: Smoothed signal line (red line).
  • Divergence signals (plotted as points):
    • ResDivergenceUp (Lime), ResDivergenceDown (Red): Regular divergences.
    • ResDivergenceUpHidden (Green), ResDivergenceDownHidden (Orange): Hidden divergences.
    • ResCorrelationUp (Turquoise), ResCorrelationDown (Magenta): Correlations.

4. Key Functions 🧠

  • Initialize(): Sets up the indicator, validates parameters, and draws static lines (oversold, overbought, zero).
  • Calculate(): Computes oscillator values, normalizes them around 50, and detects fractals for divergence analysis.
  • GetFractal(): Identifies peaks (fractalUp) and troughs (fractalDown) in the oscillator.
  • GetDivergence(): Analyzes fractal points to detect divergences or correlations.
  • CreateLine(): Draws trend lines and icons for detected signals.
  • DawDivergence(): Visualizes divergences with lines and arrows on the chart and indicator area.

5. Helper Classes 📋

  • SRPrice: Stores fractal data (index, price, indicator value).
  • DivergenceFind: Tracks divergence details (title, time, prices, color).

6. Error Handling 🚨

The indicator checks for invalid parameters (e.g., MinBarsValidation > MaxBarsValidation, even PeriodFractal) and displays warnings in the indicator area using DrawStaticText.


🛠️ How to Use the Divergency11 Indicator

Step 1: Installation 📥

  1. Download the Code: Copy the provided C# code.
  2. Add to cTrader:
    • Open cTrader and navigate to cAlgo > Indicators.
    • Click New and paste the code into the editor.
    • Build the indicator (ensure no compilation errors).
  3. Apply to Chart:
    • Open a chart in cTrader.
    • Add the Divergency11 indicator from the indicators list.

Step 2: Configure Parameters ⚙️

Customize the settings to match your trading style:

  • Choose an Oscillator:
    • Select an oscillator (e.g., Relative_Strenght_Index for RSI) via IndicatorSelection.
    • Adjust Value1 (period), Value2 (smoothing), and Value3 (signal period) as needed.
  • Set Divergence Type:
    • Use Strat to focus on Divergence, Hiden_Divergence, Correlation, or All_Divergence.
  • Fractal and Lookback:
    • Set PeriodFractal to an odd number (e.g., 5) for symmetry.
    • Adjust LookBack to control how many historical divergences are analyzed.
  • Zone and Levels:
    • Configure ExtraLevelMin and ExtraLevelMax for overbought/oversold zones.
    • Set ExtraLevelLine to adjust visual thresholds.

Step 3: Interpret Signals 📊

  • Regular Divergence:
    • Up (Lime): Bearish signal (price makes higher highs, oscillator makes lower highs).
    • Down (Red): Bullish signal (price makes lower lows, oscillator makes higher lows).
  • Hidden Divergence:
    • Up (Green): Bullish continuation (price makes lower highs, oscillator makes higher highs).
    • Down (Orange): Bearish continuation (price makes higher lows, oscillator makes lower lows).
  • Correlation:
    • Up (Turquoise): Strong bullish trend (price and oscillator both rising).
    • Down (Magenta): Strong bearish trend (price and oscillator both falling).
  • Visual Cues:
    • Trend lines connect divergence points on the chart and indicator.
    • Arrows indicate signal direction (up/down).
    • Text displays the number of detected divergences (if LookBack > 1).

Step 4: Trading Strategies 💡

  • Reversal Trading:
    • Use regular divergences (Lime/Red) to spot potential reversals.
    • Confirm with other indicators (e.g., support/resistance, candlestick patterns).
  • Trend Continuation:
    • Hidden divergences (Green/Orange) signal trend continuation.
    • Enter trades in the direction of the trend after a pullback.
  • Trend Strength:
    • Correlations (Turquoise/Magenta) confirm strong trends.
    • Use as a filter to avoid counter-trend trades.
  • Timeframe:
    • Works on any timeframe, but higher timeframes (H1, H4) reduce noise.
  • Risk Management:
    • Set stop-losses below recent swing lows (for longs) or above swing highs (for shorts).
    • Use the ATR (included in the code) to size positions.

Step 5: Optimization 🔧

  • Backtest: Use cTrader’s backtesting feature to test the indicator on historical data.
  • Adjust Parameters: Experiment with PeriodFractal, LookBack, and MinCountDivergenceShow to reduce false signals.
  • Combine Indicators: Pair with trend indicators (e.g., Moving Averages) or volatility tools (e.g., Bollinger Bands).


🌟 Tips for Success

  • Start Simple: Begin with default settings and a familiar oscillator like RSI.
  • Practice on Demo: Test the indicator on a demo account to understand its signals.
  • Monitor Alerts: Watch for arrows and trend lines to act on signals promptly.
  • Avoid Overtrading: Use divergences as part of a broader strategy, not in isolation.
  • Stay Updated: Check for code updates or community feedback on cTrader forums.


⚠️ Common Issues and Solutions

  • No Signals Appear:
    • Check MinCountDivergenceShow vs. LookBack (former must be ≤ latter).
    • Ensure PeriodFractal is odd.
  • Too Many Signals:
    • Increase MinCountDivergenceShow or reduce LookBack.
    • Tighten MinBarsValidation and MaxBarsValidation.
  • Error Messages:
    • Review parameter warnings in the indicator area (e.g., MinBarsValidation > MaxBarsValidation).
    • Correct invalid settings and reapply the indicator.


🎉 Conclusion

The Divergency v1.1 indicator is a versatile and robust tool for cTrader users, offering deep insights into price-oscillator relationships. With its customizable settings and clear visual outputs, it empowers traders to spot reversals, continuations, and trend strength with confidence. Try it out, tweak the parameters, and integrate it into your trading plan to elevate your analysis! 🚀

Happy trading, and may your charts be ever green! 📈💚

You may also like
Indicator
forex
vwap
rsi
+2
Market Cipher B
Market Cipher B
Indicator
breakout
btcusd
supertrend
+6
Order Block
Identify bullish and bearish Order Blocks to spot key support/resistance levels and potential trend reversals! 📈🔄
Indicator
usdjpy
signal
On Balance Volume USD - Combined
See USD demand in one line—Composite OBV fuses six major FX pairs into a clear momentum gauge.
VWAP Tank Btn
Custom Vwap Indicator
Repiptor RSI Amplified
RSI Amplified
[Hamster-Coder] Moving Average
Universal Moving Average indicator with extended features
Big Candel
1 Candel High Time Freme
Renko Moving Average Cross Indicator
The Renko Moving Average Cross indicator combines classic EMA crossover signals with Renko-filtered prices.
Supply Demand - BasicV1
Supply and demand zones. They're important. Here's a free version to get you started!
Indicator
signal
MeetAlgo_ChannelTrading_cTrader
Channel Trading is a volatility-based indicator using envelope theory to spot price breakouts and trade signals.
Indicator
signal
Rate Of Change v6
Rate Of Change Indicator is easy to use and measures the intensity of price action change to the upside or downside
Indicator
forex
indices
rsi
+3
Advanced RSI Indicator
Advanced RSI Indicator with multi-MA smoothing, Bollinger Bands, divergence detection, and fill zones for cTrader.
Indicator
signal
scalping
9-5-3 Trading Strat
Enhance Your Trading Strategy with the Larry Williams 9-5-3 Indicator
IR Moving Average
 this moving include everything that a trader needs from Moving Average.
Bar Explosion
cTrader indicator with mini-timeframe candlesticks. Customize timeframe, colors, margins. Perfect for traders.
Indicator
forex
indices
gbpusd
+2
HorizontalSupportResistance
This extraordinary multi-timeframe support and resistance indicator is nothing short of market wizardry.
Indicator
breakout
btcusd
eurusd
+6
Multi-Asset Performance Matrix
Visual tool tracking financial assets' % performance across timeframes, highlighting trends with color-coded insights.
Indicator
breakout
btcusd
supertrend
+6
PREMIUM SSL CHANNEL
SSL Channel: Tracks trends 📈 measures volatility ⚡filters noise via ATR+SSL. Clear signals for precise entries/exit...