19# Algo Divergence with Magic Trend -TradingView-

Janus Trader 2026

Algo Divergence with Magic Trend Momentum indicator for TradingView. The tool shown in the is a hybrid system that merges three concepts:

Momentum shift detection through a squeeze / linear regression engine.
Trend filtering via the Magic Trend line.
Exhaustion warnings using MACD histogram divergences.

The result is a visual framework that prints Buy, Sell, Bull, and Bear labels directly on the chart and keeps you trading in the direction of pressure while avoiding many false entries.

Instead of predicting tops and bottoms, the indicator waits for energy expansion after compression, then checks if price agrees with the prevailing trend.

You can use it for scalping, intraday, or swing trading.

Setup

Platform

TradingView

Timeframe

Works from 5m to 4H+.
Lower TF → more signals, more noise.
Higher TF → fewer, stronger moves.

Indicators inside the system

1) MACD Histogram

Used mainly for divergence detection (Bull / Bear warnings).

2) Squeeze Momentum Engine

Detects when the market transitions from contraction to expansion.
This is the core trigger behind Buy/Sell.

3) Magic Trend (CCI + ATR)

Acts as a dynamic trend line.

Price above → bullish environment
Price below → bearish environment

If the filter is enabled, trades are allowed only in its direction.

How to read the chart

You will typically see:

Green Buy labels → momentum turning upward.
Red Sell labels → momentum turning downward.
Green Bull → bullish divergence.
Red Bear → bearish divergence.
A blue/red trailing line → Magic Trend.

Think of divergences as early warnings, and Buy/Sell as execution triggers.

Trading Rules

This is a trend-following momentum strategy.

We do not buy just because we see Bull.
We do not sell just because we see Bear.

We wait for momentum confirmation.

Buy Setup (Long Position)

A valid long trade happens when all conditions align.

Conditions

A Buy label appears.
The histogram/linear regression flips from negative to positive.
Current candle is bullish (close > open).
Price is above the Magic Trend (if filter enabled).

Entry

Enter at candle close or on a small pullback after the signal.

Stop Loss

Conservative:

Below the signal candle low.

Aggressive:

Below Magic Trend.

Take Profit

Options:

Fixed RR → 1:1.1 or 1:5

Previous resistance

Trail with Magic Trend

Extra confidence

If a Bull divergence printed shortly before → probability improves.

Sell Setup (Short Position)

Mirror logic.

Conditions

A Sell label appears.
Momentum flips from positive to negative.
Candle is bearish (close < open).
Price is below Magic Trend.

Entry

At close or pullback.

Stop Loss

Conservative:

Above signal candle high.

Aggressive:

Above Magic Trend.

Take Profit

Fixed RR

Support levels

Trail the line.

Extra confidence

Recent Bear divergence → stronger case.

What makes this strategy powerful

It combines:

Volatility expansion.
Momentum confirmation.
Trend direction.
Divergence warnings.

Most systems use only one of these.

Common mistakes to avoid

Trading every divergence.

Ignoring the trend filter.

Entering late after huge candles.

Forgetting risk management.

No indicator eliminates losses.

ho is it best for?

Very practical for:

intraday traders,

prop firm challenges,

systematic rule-based traders.

Less ideal for people who like prediction or counter-trend catching.

Conclusions

The Algo.Div + Magic Trend approach gives a clear structure:

Detect pressure, Confirm direction, Filter by trend, Execute,
Let profits run.

Algo Divergence with Magic Trend

Algo-Div.txt

Text Document 8.8 KB

Download

Comments: 0

19# MACD with ADX Trading System

Trading MACD

Time frame - Daily.

Indicators - Macd (3,9,16)

ADX(16) with + DI and - DI lines

Buy setup - macd should give buy signal.

+di should be above -di. if +di is below -di and macd gives buy signal then ignore it at that time and wait for + di to go above - di to make a long entry.

Sell setup - macd should give sell signal.

- di should be above +di .if -di is below +di and macd gives sell signal then ignore it at that time and wait for -di to go above +di to make a short entry.

Exit - use trailing stops to exit because it will allow you to capture maximum profit.

Comments: 2

#2
Forextradingstrategiesresources (Friday, 18 October 2013 15:46)

daily time frame 40-70 pips, depends by currency pair.
Thanks
admin
#1
azhar (Thursday, 17 October 2013 08:59)

can u give suggest what number for trailing stops.... 60???