Divergence Indicator

[Anvil]

Looking for a script that detect divergence between
an indicator(RSI,CCI or Stochs) and price.

-Anvil

[Anvil]

Any ideas?

[gspiker]

You could try requesting such a formula be made:

http://www.esignal.com/regform/studyrequest.asp

G

[gopis]

<img src=icon_smile_8ball.gif border=0 align=middle>

[Anvil]

I found some code on the TS Support Site for a Divergence Index.
Off to test it now.....


Here is the link if anyone is interested:

http://www.tssupport.com/knowledgebase/?action=article&id=1758

[vladar]

Re: The divergence indicator from TSS

tried it out, and frankly, I cannot even remotely understand what it is supposed to be doing.

The description text says many many times price divergence with "AN INDICATOR". Well, WHICH indicatove might that be?

Here is a chart with a clear price divergence with both RSI and MACD (shown by red lines), but the divergence indicator is flat as a pancake.

So, what does it DO?
And if it does anything, how do you determine what indicator the price is diverging FROM?

http://share.esignal.com/groupcontents.jsp?folder=&picture=Divergence%20Indicator.png&groupid=48

[louiefloresjr]

Divergence indicator

I wrote a quick dirty one. It uses 14 day momentum but I'm sure you could change it to whatever you wanted. It also uses close instead of low and doesn't actually detect all peaks etc. (big disclaimer cuz it isn;t everything you would want.

It only detects the last divergence and only one - Cycling through a bunch of stocks you will see that it works pretty well - Helps me catch alot of reversals. my humble opinion is that it actually helps me catch things that aren't actually true divergence (cuz of a middle lower price peak etc.)

Not sure how to use file share yet - if you want it I'll post it here or email it to you.

Louie

[ACM]

Re: Reply to post 'Divergence Indicator'

Louie
Open the Editor and load the formula.
When that is done click on the "Publish File to FileShare" in the FileShare
Toolbar (it is the second icon from the left).
That will prompt you for your UserName and Password or will take you
directly to the FileShare Publish dialog box if you have the UserName and
Password stored on the computer.
At the bottom of that window you should see the name of the efs file and in
the main window the groups where you are registered.
If no groups are there you will need to either create or join one at
FileShare (you are welcome to join and post at ACM Test)
Click Publish and that should transfer your efs to FileShare
HTH
Alex

[vladar]

Louie, either is fine by me.
If you can't post it here, I would very much appreciate your emailing it to me as divergences are one of the main signals I use for entering or preparing to enter trades.

It would be most interesting to see how an indicator handles them.

Cheers
Vlad

[louiefloresjr]

here it is

http://share.esignal.com/groupcontents.jsp?folder=&groupid=10

and the name is Div_detect.efs

I'll post on the main group too.

read the comments
this only detects bullish divergence - you can easily make it detect bearish divergence and change the name and run both -
very low cpu usage.


Thanks Alexis for letting me use your group for this.
Louie

[ACM]

Re: Reply to post 'Divergence Indicator'

Louie
Very nice work indeed. If it is not too much to ask why not post also a bearish version?
Thank you for sharing your efforts
Alex

[louiefloresjr]

Bear version

Thank you for the acknowledgement

Bear version posted.

Louie

[vladar]

Nicely Done

Louie, Good stuff.

I just loaded both studies into a chart, and sure enough, it detected the very divergences I saw and traded yesterday.

Thanks for sharing.

Cheers.
Vlad

[cpatte7372]

Hi,

Does anyone have any examples showing this efs working? I have run it on a number of charts for testing and I do not appear to get any signals.

Cheers

Carlton

[ACM]

Carlton
The enclosed chart shows both versions of the efs at work
Alex