Class A divergence

   Hi Bana, 

I had a good look at this indicator and have reconstructed the code for a few reasons.

1.  It didn't sync the indicator peaks with the price on the very bar the peak occurs.  This results in an occasional mismatch so
 indicating divergence when there wasn't any. This sync is also called correct correspondence.

2. Binary indicators aren't very user friendly.. like which spike means what again?

3. Also didn't show the actual indicator being used, which would be good to see.

 I have added the MACD difference (histogram line) and Stochastic Momentum.
You can now compare divergences on multiple indicators and see if they match.    

Enjoy!

[Description="Bullish & Bearish Divergence, Max"]

ind:=Input("MACD=1, RSI=2, DMI=3, STOC=4",4,1);

pds:=Input("indicator periods",5,1);

Ch:=Input("peak/trough depth minimum (0-100%)",0,0)/100;

MD := macd()-ma(macd(),9,E);

DS := ma((ma(C - llv(L,pds),pds,E) / ma(hhv(H,pds) - llv(L,pds),pds,E))*100,2,E);

y:=If(ind=1,MD,If(ind=2,RSI(C,pds),If(ind=3,DX(pds),DS)));

{ detect indicator peak }

Pky:=y<Ref(y,-1) AND Ref(y,-1)>Ref(y,-2) AND Ref(y,-1)>=(y+Ref(y,-2))/2*(1+Ch);

Pky1:=ValueWhen(1,Pky,Ref(y,-1));

Pky2:=ValueWhen(2,Pky,Ref(y,-1));

{ save corresponding price bar of peak }
Pkx1:=ValueWhen(1,Pky,Ref(C,-1));

Pkx2:=ValueWhen(2,Pky,Ref(C,-1));

{ detect indicator trough }
Try:=y>Ref(y,-1) AND Ref(y,-1)<Ref(y,-2) AND Ref(y,-1)<=(y+Ref(y,-2))/2*(1-Ch);

Try1:=ValueWhen(1,Try,Ref(y,-1));

Try2:=ValueWhen(2,Try,Ref(y,-1));

{ save corresponding price bar of trough }
Trx1:=ValueWhen(1,Try,Ref(C,-1));

Trx2:=ValueWhen(2,Try,Ref(C,-1));

y;
[linestyle=marker; marker=type1; name=Bull_Div]

(Try AND Trx1<Trx2 AND Try1>Try2);

[linestyle=marker; marker=type2; name=Bear_Div]

(Pky AND Pkx1>Pkx2 AND Pky1<Pky2);

Edited by maximo - 26 Apr 2009 at 5:32pm

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maximo Members Profile Send Private Message Find Members Posts Add to Buddy List BullCharts Guru Joined: 02 Sep 2006 Location: Australia Posts: 232	Post Options Post Reply Quote maximo Report Post Quote Reply Posted: 25 Apr 2009 at 11:46pm
	Hi Bana, I had a good look at this indicator and have reconstructed the code for a few reasons. 1. It didn't sync the indicator peaks with the price on the very bar the peak occurs. This results in an occasional mismatch so indicating divergence when there wasn't any. This sync is also called correct correspondence. 2. Binary indicators aren't very user friendly.. like which spike means what again? 3. Also didn't show the actual indicator being used, which would be good to see. I have added the MACD difference (histogram line) and Stochastic Momentum. You can now compare divergences on multiple indicators and see if they match. Enjoy! [Description="Bullish & Bearish Divergence, Max"] ind:=Input("MACD=1, RSI=2, DMI=3, STOC=4",4,1); pds:=Input("indicator periods",5,1); Ch:=Input("peak/trough depth minimum (0-100%)",0,0)/100; MD := macd()-ma(macd(),9,E); DS := ma((ma(C - llv(L,pds),pds,E) / ma(hhv(H,pds) - llv(L,pds),pds,E))100,2,E); y:=If(ind=1,MD,If(ind=2,RSI(C,pds),If(ind=3,DX(pds),DS))); { detect indicator peak } Pky:=y<Ref(y,-1) AND Ref(y,-1)>Ref(y,-2) AND Ref(y,-1)>=(y+Ref(y,-2))/2(1+Ch); Pky1:=ValueWhen(1,Pky,Ref(y,-1)); Pky2:=ValueWhen(2,Pky,Ref(y,-1)); { save corresponding price bar of peak } Pkx1:=ValueWhen(1,Pky,Ref(C,-1)); Pkx2:=ValueWhen(2,Pky,Ref(C,-1)); { detect indicator trough } Try:=y>Ref(y,-1) AND Ref(y,-1)<Ref(y,-2) AND Ref(y,-1)<=(y+Ref(y,-2))/2*(1-Ch); Try1:=ValueWhen(1,Try,Ref(y,-1)); Try2:=ValueWhen(2,Try,Ref(y,-1)); { save corresponding price bar of trough } Trx1:=ValueWhen(1,Try,Ref(C,-1)); Trx2:=ValueWhen(2,Try,Ref(C,-1)); y; [linestyle=marker; marker=type1; name=Bull_Div] (Try AND Trx1<Trx2 AND Try1>Try2); [linestyle=marker; marker=type2; name=Bear_Div] (Pky AND Pkx1>Pkx2 AND Pky1<Pky2); Edited by maximo - 26 Apr 2009 at 5:32pm

Bana Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 02 Jan 2007 Location: Australia Posts: 46	Post Options Post Reply Quote Bana Report Post Quote Reply Posted: 12 Apr 2009 at 4:50pm
	thanks Maximo. Will give it a go and put feedback here later on.

maximo Members Profile Send Private Message Find Members Posts Add to Buddy List BullCharts Guru Joined: 02 Sep 2006 Location: Australia Posts: 232	Post Options Post Reply Quote maximo Report Post Quote Reply Posted: 12 Apr 2009 at 12:47am
	Gives interesting signals on XJO, have fun testing. {Class A price/indicator divergence v3 }{ +1 signal = bullish trough divergences }{ -1 signal = bearish peak divergences }{ ©Copyright 2003 Jose Silva }{ josesilva22@yahoo.com } ind:=Input("MACD=1, RSI=2, DMI=3, Mom=4",2,1); pds:=Input("indicator periods",10,1); f:=Input("price field: Close=1, High/Low=2",1,1); Ch:=Input("peak/trough depth minimum (0-100%)",0,0)/100; shift:=Input("shift signals back to match divergences=1",0,0); { y:=insert any indicator or Fml("formula name") } y:=If(ind=1,MACD(),If(ind=2,RSI(C,pds),If(ind=3,DX(pds),Mo(C,pds)))); xu:=If(f=1,C,H); xd:=If(f=1,C,L); Pkx:=xu<Ref(xu,-1) AND Ref(xu,-1)>Ref(xu,-2) AND Ref(xu,-1)>=(xu+Ref(xu,-2))/2(1+Ch); Pkx1:=ValueWhen(1,Pkx,Ref(xu,-1)); Pkx2:=ValueWhen(2,Pkx,Ref(xu,-1)); Trx:=xd>Ref(xd,-1) AND Ref(xd,-1)<Ref(xd,-2) AND Ref(xd,-1)<=(xd+Ref(xd,-2))/2(1-Ch); Trx1:=ValueWhen(1,Trx,Ref(xd,-1)); Trx2:=ValueWhen(2,Trx,Ref(xd,-1)); Pky:=y<Ref(y,-1) AND Ref(y,-1)>Ref(y,-2) AND Ref(y,-1)>=(y+Ref(y,-2))/2(1+Ch); Pky1:=ValueWhen(1,Pky,Ref(y,-1)); Pky2:=ValueWhen(2,Pky,Ref(y,-1)); Try:=y>Ref(y,-1) AND Ref(y,-1)<Ref(y,-2) AND Ref(y,-1)<=(y+Ref(y,-2))/2(1-Ch); Try1:=ValueWhen(1,Try,Ref(y,-1)); Try2:=ValueWhen(2,Try,Ref(y,-1)); 0; Ref(Trx AND Try AND Trx1<Trx2 AND Try1>Try2,shift)-Ref((Pkx AND Pky AND Pkx1>Pkx2 AND Pky1<Pky2),shift)

Bana Members Profile Send Private Message Find Members Posts Add to Buddy List Regular Joined: 02 Jan 2007 Location: Australia Posts: 46	Post Options Post Reply Quote Bana Report Post Quote Reply Posted: 11 Apr 2009 at 9:38am
	Divergences are very powerful signals. Apparently there is a formula in Metastock to search for these. It would be worth testing if it can be converted to bullscript. Any help will be greatly appreciated. thanks Class A price/indicator divergence v3 }{ +1 signal = bullish trough divergences }{ -1 signal = bearish peak divergences }{ ©Copyright 2003 Jose Silva }{ josesilva22@yahoo.com } ind:=Input("MACD=1, RSI=2, DMI=3, Mom=4",1,4,1); pds:=Input("indicator periods",2,2520,10); f:=Input("price field: Close=1, High/Low=2",1,2,1); Ch:=Input("peak/trough depth minimum (0-100%)",0,100,0)/100; shift:=Input("shift signals back to match divergences=1",0,1,0); {y:=insert any indicator or Fml("formula name")} y:=If(ind=1,MACD(),If(ind=2,RSI(C,pds), If(ind=3,DMI(C),Mo(C,pds)))); xu:=If(f=1,C,H); xd:=If(f=1,C,L); Pkx:=xu<Ref(xu,-1) AND Ref(xu,-1)>Ref(xu,-2) AND Ref(xu,-1)>=(xu+Ref(xu,-2))/2(1+Ch); Pkx1:=ValueWhen(1,Pkx,Ref(xu,-1)); Pkx2:=ValueWhen(2,Pkx,Ref(xu,-1)); Trx:=xd>Ref(xd,-1) AND Ref(xd,-1)<Ref(xd,-2) AND Ref(xd,-1)<=(xd+Ref(xd,-2))/2(1-Ch); Trx1:=ValueWhen(1,Trx,Ref(xd,-1)); Trx2:=ValueWhen(2,Trx,Ref(xd,-1)); Pky:=y<Ref(y,-1) AND Ref(y,-1)>Ref(y,-2) AND Ref(y,-1)>=(y+Ref(y,-2))/2(1+Ch); Pky1:=ValueWhen(1,Pky,Ref(y,-1)); Pky2:=ValueWhen(2,Pky,Ref(y,-1)); Try:=y>Ref(y,-1) AND Ref(y,-1)<Ref(y,-2) AND Ref(y,-1)<=(y+Ref(y,-2))/2(1-Ch); Try1:=ValueWhen(1,Try,Ref(y,-1)); Try2:=ValueWhen(2,Try,Ref(y,-1)); 0; Ref(Trx AND Try AND Trx1<Trx2 AND Try1>Try2,shift) -Ref((Pkx AND Pky AND Pkx1>Pkx2 AND Pky1<Pky2),shift)