I would like to discuss with you on the following theoritical aspects of GomCD Divergence for my better understanding of this indicator. Appreciate if you could shed some light on it please.
1) I understand that the HD/RD Divergence lines are drawn on the price panel based peak comparision between price swings and GomCD indicator peaks. My question is which of the following peaks values of GomCD indicator is taken for comparision:
SwingCD Peaks or AbsoluteCD Peaks
2) When the price swings make HL Pivot after HH Pivot, there are two scenarios. Viz., @ HL pivot the SwingCD value can either be a +tive or a -tive number. At this context:
Can I assume that if the SwingCD number @ HL pivot is +tive the the buyer are buying at Ask price meaning the probability of making another HH pivot is high.?
Also, if the SwingCD number @ HL pivot is _tive, the buyer are buying @ Bid price meaning the probability of making HH pivot is low.?
And vice versa for LL/LH pivot scenario.
Silvester17, I know that I am eating your Brain a lot , please bear with me.
these are all good and valid questions. however I do not follow swing cd's and divergences of that kind in general. I might look at a single bar to see if there's a big positive delta, but price goes lower. and vice versa. anyway you need to ask someone else.
or even better, do your own tests and see if you can find some useful information. that's always a good solution
The following 2 users say Thank You to Silvester17 for this post:
I am very much interested in your CD work. Currently I am studying the probable entry and exit points based on SwingCD values printed on the HH/HL/LL/LH pivot points of Price action swing pro indicator.
At this juncture, I would appreciate if you could post some pictures explaining this strategy. It would be og great help to me and fellow traders.
Im using the GomCD inout for divergence with this PAS. Working nicely, thank-you.
I have is the setting for "GomCD Mode" - I wonder what is the difference between each of these options?
I did a test with 5 charts alongside each other on the ES (2000T on each etc), each chart used one of the different settings, Absolute, Absolute & Swing, False, Swing, finally Swing & Absolute - My test found no difference in divergence plots for any of the charts - This surprised me.
Maybe I have something set wrong, so I wonder what differences (if any) should be shown, and I would like to understand the differences between these "GomCD Mode" options and how each should reflect to the chart.
1) I did a test with the Volume filter mode switched on, all charts were on SwingCD for the GomCD mode".
2) I switched to "Larger than", then used 50, 100, 500 and 1000 as filter sizes.
I was thinking a "larger than" setting would filter out some of the signals that had minimal divergence. What I found was that the setting with 50 and 100 actually produced more divergence plots than with the filter turned off - How can this be?
Where as a divergence of 50 or 100 contracts in CL would be substantial, I did not think it would in ES.
Considering this was the ES, I was surprised that the lower numbers (50 and 100) made any changes at all to the plots, considering the liquidity in ES I was expecting that 1000 would even be a small number, also surprising was the fact that with the setting of "larger than 1000" there was not one plot the whole day. An average 2000 tick candle of the ES can be around 7000+ contracts, its surprising that the setting of 50 & 100 has any effect at all.. On CL maybe, but ES?
It´s possible my interpretation of the indicator and GOMCD Div settings are wrong. Just trying to clarify and understand what´s going on there. I wonder what other thoughts are, would like to hear from anyone, especially those that use the GomCD function