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<SPAN
class=252123304-08062002>Bill:
<SPAN
class=252123304-08062002>
I think you have an
error in
"The
interpretation of the indicator output is as follows:- .08 (80%) and lower
is divergence between the Close and the MACD"
<SPAN
class=252123304-08062002>
either .08 should be
.80 or (80%) should be 8%
<SPAN
class=252123304-08062002>
Which do you
mean?
<SPAN
class=252123304-08062002>
<FONT face=Tahoma
size=2>-----Original Message-----From: owner-metastock@xxxxxxxxxxxxx
[mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of
billhebertSent: Friday, June 07, 2002 9:28 PMTo:
metastock@xxxxxxxxxxxxxCc: mpc@xxxxxxxxxxxxxxxxxSubject:
Re: Divergence between the Close and an Indicator for MACD and
RSI(14)
Maurice,
I will provide the code for a RSI(14) diveregence as well as a
MACD(12,26,--) divergence.
Sorry, it took a few days to locate. Out of town most of the week (Newport
Beach) with day job.
Attachment will show how it is used.
This formula shows divergence between price and the indicator not the trend
line divergence you
may be looking for when their are say increasing price peaks and decreasing
indicator peaks as
a leading indicator for a potetial price reversal.
Divergence Between the Close and an Indicator
The following formula will calculate the correlation of the Close
andthe MACD. It is written
using a "long form" MACD so that the time periods used by the MACD may be
changed.
This indicator shows "divergence" between the close and the
indicator:
Divergence Between the Close and MACD
Correl(((Sum(Cum(1)*(Mov(C,12,E)-Mov(C,26,E)),100))-(Sum(Cum(1),100)*Sum((Mov(C,12,E)-Mov(C,26,E)),100)/100))/((Sum(Power(Cum(1),2),100))-(Power(Sum(Cum(1),100),2)/100)),((Sum(Cum(1)*C,100))-(Sum(Cum(1),100)*Sum(C,100)/100))/((Sum(Power(Cum(1),2),100))-(Power(Sum(Cum(1),100),2)/100)),12,0)
The interpretation of the indicator output is as follows:- .08
(80%) and lower is divergence between the Close and the MACD.- 1 is very
strong divergence.+ 1 is very strong correlation.
The formula was constructed this way so that most other indicators maybe
used in place of the MACD.For example here is the same indicator using the
RSI(14): Divergence Between the Close and
RSI
Correl(((Sum(Cum(1)*(RSI(14)),100))-(Sum(Cum(1),100)*Sum((RSI(14)),100)/100))/((Sum(Power(Cum(1),2),100))-(Power(Sum(Cum(1),100),2)/100)),((Sum(Cum(1)*C,100))-(Sum(Cum(1),100)*Sum(C,100)/100))/((Sum(Power(Cum(1),2),100))-(Power(Sum(Cum(1),100),2)/100)),12,0)
Bill
----- Original Message -----
From: "Maurice Cruz" <<A
href="mailto:mpc@xxxxxxxxxxxxxxxxx";>mpc@xxxxxxxxxxxxxxxxx>
To: <<A
href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx>
Sent: Wednesday, June 05, 2002 6:08 PM
Subject: RSI divergence
> Hi,> > Is there an exploration formula out
there that would enable me to scan> for negative or positive divergences
on a 14 day RSI?> > Regards,> Maurice> >
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