MT Divergence indicator question - Trend Continuation

Originally from ticket #2518.

Hello Support, this is Lusanselmo Cinachi you customer for Microtrends and Woodies auto trader.

As I coud not found a documentation that explain in detail the MT Divergence indicator, I appreciate if you could answer the question:

How do I read the indicator to identify a divergence trend continuation or divergence reversal trend?

As you see bellow on the trend up in the middle of the picture, the indicator shows in green many divergence positions but all of them turned to be trend continuation but the last one at the top.
Could you please help me to identify the two divergences? By the way I am using 30-woodies divergence study.

Thanks in advance

Hi

There are two workspaces that show off some of the features:

MT Divergence
MT Divergence HILO
However these are set using Forex - you will need to chagne the instrument on the chart.

QUESTION
Other than the 34 zone settings, that I understand, what other settings can I control? How many of each setting and what do they control, or change?

ANSWER
You can change every parameter -
First of all check and set "MT Zone Setting ID"=0
This one of the common properties for presets as discussed in the help guides at:
http://help.microtrends.co/common_indicator_properties.htm

Params
Divergence Filter: 0 to 31 - Using Bitwise Flags 1,2,4,8,16 so to turn on 1 and 2 - add them together. This allows you to have a combination of different rules.
Divergence Filter Mode HiLo: use the bar, or the high and low of the day to compare to - for divergence
Divergence Filter Period: A generic parameter that will set any of the indicator/strudies period parameter - for example if you comparing to a CCI 9 - then Divergence Filter Period=9
Divergence Filter Smooth: Smooths the divergence indicator
Divergence Filter Smooth Study: Smooths the divergence indicator dataseries
Divergence Filter Study: Select the indicator or price from this list - eg CCI = 0
Add the indicator MT Divergence to a chart -
So you can view and read its parameter list as detailed here:

Param List
http://screencast.com/t/kgKiEhSn
Select a study
Select the indicator you would like to check for Divergence from within the MT Divergence parameterlist.
They are listed in the indicator parameter description for the parameter "Divergence Filter Study":
http://screencast.com/t/dnu4fpsEXIx
To assist you lets assume you are interested in a CCI indicator divergence study.
So set "Divergence Filter Study" = 0
Then you can experiment with the different types of divergence measurements,
you do this by reading the param Divergence Filter There a number of modes 1,2,4,8,16
Set this parameter to that setting and then click apply to see the effect

Please also see this post:
https://microtrends.zendesk.com/entries/21354583-MT-Divergence-Indicator-HIGH-LOW-Divergence-filtering-High-Low-Entry-Signals

MicroTrends Support
support@microtrends.co
http://www.microtrends.co/support/

Tip! You can visit the help desk forum to see previous answered frequently asked questions:
http://microtrends.zendesk.com/forums

If you change the Param:
Divergence Filter
Divergen Filter HiLo

you will see different ways of it working on your Chart

MicroTrends Support
support@microtrends.co
http://www.microtrends.co/support/

Tip! You can visit the help desk forum to see previous answered frequently asked questions:
http://microtrends.zendesk.com/forums

Sorry it did not answer my question. How do I identify on the indicator MT Divergence the trend continuation from trend reversal. It is not like the traditional indicators?
Tks in advance
Lusanselmo

It only shows divergence for reversals
Green dot - means long
Red Dot - means short
You can control the types of measurement and study via the parameters as described below.

Trend continuation
would be a failed reversal

MicroTrends Support
support@microtrends.co
http://www.microtrends.co/support/

Tip! You can visit the help desk forum to see previous answered frequently asked questions:
http://microtrends.zendesk.com/forums