Price Divergence Entries Confirmed by Murrey Math Oscillator Levels

Summary

This trend strategy looks for regular or hidden divergence between price swings and a selectable indicator, then confirms entries with a Murrey Math oscillator derived from a Donchian channel. The divergence detector can use RSI, MACD, stochastic, volume, accumulation/distribution, Fisher transform, or CCI. Fractal highs and lows provide the comparison points: bullish divergence occurs when price makes a lower low while the indicator makes a higher low, with hidden divergence defined by the opposite swing relationship; bearish cases are mirrored. Long entries require a bullish divergence and a selected positive oscillator quadrant, while shorts use bearish divergence and a negative quadrant.

Positions close when the oscillator crosses its zero boundary, and configurable profit, stop, and trailing-stop inputs are available. The supplied settings include a 100-bar oscillator lookback and a 100-point trailing stop, while take-profit and fixed-stop inputs are disabled by default. A one-month BTC-USDT futures backtest configuration is listed, but no results or performance measures are given. Fractal confirmation is delayed by two bars, and the document does not establish robustness across assets, settings, or market regimes.

Key ideas

• The strategy detects regular and hidden divergence at fractal price and indicator swings.
• The divergence input can be selected from seven indicator families.
• Murrey oscillator quadrants filter divergence entries in the corresponding direction.
• Positions exit when the oscillator returns across zero, with optional protective orders.
• The document supplies a backtest setup but no performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.