Hello,
I have found excellent indicators of classic discrepancies on the Proreal Code site, whether they are classic discrepancies on the RSI, stochastic or MACD. However, no hidden discrepancy indicators really suit me.
Can someone help me code a hidden discrepancy indicator for RSI 14?
The aim would be to create an algo that would enter into a rebound position in trending markets.
The criteria for a bullish hidden divergence (and vice versa for a bearish hidden divergence) :
– SMA50 > SMA200 (trend filter)
– Current low > previous low
– The low must be higher than the SMA200 (otherwise the trend on this time frame is considered to be reversed).
– Current RSI < RSI at previous low
- The levels of the RSI, the current and he levels of the previous low, should be between 30 and 70 (we don't want to trade the reversals)
There's a screenshot that shows how prices and RSII behave during a hidden bullish divergence.
Thank you for your help 🙂
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