⚙️MICAlgo Oscillator

Algo Oscillator Setting

Here, you can adjust the sensitivity of the oscillation system and enable the Oscillator Trend Signal. This signal can help users clearly understand the current chart direction, whether it's more bullish or bearish. For the Ribbon part, you can use the RSI method, where crossing below the upper track indicates bearish momentum, and crossing above the lower track indicates bullish momentum.

Divergence Mode

Hidden and regular divergences are two types of divergences. Here, you can choose the type of divergence you wish to use, and below, you can adjust the sensitivity of the divergence detection. When a divergence occurs, it can be marked by framing the high and low points of the corresponding candlesticks, which can be used as support or resistance. If subsequent candlestick closing prices do not break through these levels, a bullish outlook is generally favored.

Amplitude Standard Setting

This feature can accurately determine the direction of fluctuations on the chart. Selecting "Show Cross" will display labels when the histogram is above the zero axis. When the histogram crosses above or below the zero axis, it indicates the market is experiencing a segmental trend.

Special Usage

Divergence Support and Resistance Strategy(DSR)

Key Areas(KA)

First, frame the high and low points of the key bullish signal candle using a square. When the price touches the framed area, there is a high probability of a trend reversal. You can use the framed area as Key Areas (KA).

Rule

• Entry rules should use regular divergence, while take profit points should be set using hidden divergence.

• When touching the Key Areas (KA), the indicator must be in either the overbought or oversold region.

• If a bullish Key Area is not breached, the market trend continues to be predominantly bullish.

• If a bullish Key Area is breached, it then becomes a bearish Key Area.

• If a bearish Key Area is not breached, the market trend continues to be predominantly bearish.

• If a bearish Key Area is breached, it then becomes a bullish Key Area.

• The strength of regular divergence is always greater than that of hidden divergence. Therefore, prioritize the direction and points provided by regular divergence.

• When the market does not breach the divergence block (KA), it indicates that the market continues to move in a single direction. This can be traded in conjunction with the retracement points of the Smart Trail.

Principle

The principle of this method is that when a divergence occurs in the price on a particular candlestick, it is largely due to the intervention of major players or large funds influencing the market direction. We can then use indicators to identify the key candlestick areas where funds are involved for trading.

Smart Trail + Divergence

When the market does not breach the divergence block (KA), it indicates that the market continues to move in a single direction. This can be traded in conjunction with the retracement points of the Smart Trail.