|
PureBytes Links
Trading Reference Links
|
Hi John,
Maybe you'll get a more precise answer about the "divergence finder" but I
may have a couple ideas for you. I used to use MS EOD and was considering
the real time version which is why I'm on the list but can't test this idea
myself. Try creating a relatively short moving average of price and one of
say RSI, then write a formula to subtract each from its MA (diff and
RSIdiff). Finally write an Exploration for situations where RSIdiff is
positive and diff is negative -- this should be a positive divergence. The
reverse should be a negative divergence. Probably going to miss a bunch but
still might be useful. One of those "need eyeballs on the computer" chart
pattern things. Another idea is to us the BarsSince function to count how
many bars back is the ,say, 60 day low on RSI and price. Explore for
situations where BarsSince RSI made a low are less than BarsSince price made
a low. Please advise how these work out.
Brian
----- Original Message -----
From: "jhmtn" <jhmtn@xxxxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Saturday, December 02, 2000 5:29 PM
Subject: Divergence
> One of the more interesting indicators of price reversal for me is the
> divergence that occurs between a momentum indicator and the price action.
> For example, if through some time period both price and RSI make a high
and
> then price rises and RSI drops, then divergence has occured between the
> indicator and the price and a reversal in price action "might" occur.
>
> I have not been able to figure out a manner of looping thru the past 1 to
70
> periods of price and momentum indicator values to figure out if the prices
> are showing divergences or not using Metastock.
>
> Does anyone have such a formula or know where i can find it?
>
> Thanks. ................................... John
>
>
|