Willams %R extreme and MACD Divergence

685 13 50
This is two different indicators combine into one.

First is the two different period of Williams% 5 mins and 15 mins.
Second is the MACD line of 5 mins chart.
Both will be primarily use on the 5 mins chart, you can use on another time frame if you wish

Williams %:

green = uptrending
red = downtrending

Bright green: overbought condition, look to Short at the end of the signal
Bright Red: oversold condition, look to Long at the end of the signal

I also added the MACD line which you can use for divergence
when price move higher and MACD is moving down, expecting price to drop sometime soon or vice versa. See chart for example.

Remove from Favorite Scripts Add to Favorite Scripts
study(title="Willams %R", shorttitle="%R & MACD")
length = input(14, minval=1)
upper = highest(length)
lower = lowest(length)
out = 100 * (close - upper) / (upper - lower)

length1 = input(42, minval=1)
upper1 = highest(length1)
lower1 = lowest(length1)
out1 = 100 * (close - upper1) / (upper1 - lower1)
bgUp  = (out > -20 and out1 > -20) ? green : na
bgDown =(out < -80 and out1 < -80) ? red : na
bgUp1  = (out > -50 and out1 > -50) ? green : na
bgDown1 =(out < -50 and out1 < -50) ? red : na

bgcolor (bgUp, transp=00)
bgcolor (bgDown, transp=00)
bgcolor (bgUp1, transp=50)
bgcolor (bgDown1, transp=50)

fastLength = input(12)
slowlength = input(26)
MACDLength = input(9)

MACD = ema(close, fastLength) - ema(close, slowlength)
aMACD = ema(MACD, MACDLength)
delta = MACD - aMACD

plot(MACD, color=blue, title="MACD")
So have you tried this in real trading on a 4 hour chart, or a day chart, or a weekly chart?
no John, so far only paper trade, only tried on 5 minutes chart
JohnKer CooperHoang
Ok, looking over your indicator it looks good. One issue though is how do you filter out the double signals? Where it gives a say, buy signal, but then price goes lower and it gives another buy signal? Any suggestions?
You can combine this indicator of mine, when both confirmthe same. it is pretty close to accurate in predicting the direction
CooperHoang CooperHoang
CooperHoang CooperHoang
You can see in this example. Divergence confirmed the next expected move which is DOWN, then there is a overbought signal and look what happens, price move down before US open. ONCE US open at 8:30, there is high volume for the green candle signal smart money is moving market up, any price below this candle is pretty much free money. You would then wait for the price go become over sold, then BUY to ride it up for a huge profit...
JohnKer CooperHoang
Very interesting work, I'll study it more and maybe try a few small trades. Thank you for your effort and responses.
You welcome mate. Please let me know if you run into any issue so I can tweak it if needed.
JohnKer CooperHoang
What is the indicator of the large green and red bars behind price?
That is the CCI-240 period on the 5 minutes chart. it is basically telling me if the price is being overbought in the longer trend and if all 3 indicators is giving the same signal plus divergence of either MACD or OBV is a super strong signal of reversal. But again you can use all of mine indicator here to pre-screen. I only recommend trading on U.S. open and also try to use my single zone recovery method here. It is a calculated Martingaling. But should be tweak to meet your risk tolerance.

EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out