Divergence Scan Indicator - Repost

[Trader_Q]

I thought I'd repost this question here, since I did not receive a reply from Eugene which would be greatly appreciated.

Originally Posted by Trader_Q

Is there any documentation available that explains in detail how to use this indicator? Not how to install, but how to use it. For instance, what do the circles indicate? The numbers on the chart?

I have watched both videos re: divergence and about 20min into the first one, it is shown but not much info given. Also the pdf on divergence shows screenshots with no explanations whatsoever.

It would be wonderful to have a video on how to use this indicator.

[EugeneFXI]

Hey TraderQ,

There is no separate documentation for the Divergence Scan, so let me summarize for you how it works:

1. The indicator finds the average price across n bars, as well as the average stochastic value around the same bars.
2. If the price and the oscillator diverge, you will see the appropriate up/down signal.
3. The numbers above the signal arrows represent the change in price (yellow number) and the change in stochastic (blue number).
4. The big pink circle is the point from where the divergence is being plotted.
5. The small gray dots are the average bars being considered.

Since the indicator doesn't use highs and lows, but rather averages, you have to switch to Hidden Divergence mode when you are in a trending market, to find entries into the trend.

When you are in a ranged market, leave it in Regular Divergence mode to find possible areas of reversal.

I hope this clarifies this indicator! Let me know if you have any questions.