The meaning of this combination in the output of the zones overbought \ oversold. Pluses in what used indicators are complementary, and as a result increase the likelihood accurate and profitable entry.
Definition of 'Relative Strength Index - RSI'
A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula:
RSI = 100 - 100/(1 + RS*)
Definition of 'Commodity Channel Index - CCI'
An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold.
Definition of 'Stochastic Oscillator'
A technical momentum indicator that compares a security's closing price to its price range over a given time period. The oscillator's sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result.
We have found this combination of divergence indicators using the free tool divergence constructor. And we have coded super divergence indicator RSI-CCI-Stoch based on this combination of indicators. Indicator works good on timeframes: M15, H1. And can be used for all currencies.
Super Divergence Indicator Explanation