Hello all, In an attempt to look for divergences, I am trying to find a resource that has the capability of charting new price highs/lows for the market. I currently use barchart to get an idea of the overall market momentum at http://www2.barchart.com/momentum.asp , but I haven't been successful in finding ways to chart this information, which is much more valuable than simply looking at the data points from one day to another. I know that this can be done using Excel, but I am unfortunately not very skilled in that domain. I use eSignal for my charting application and am unaware if they offer a feature that can chart the new highs/lows. Any ideas/suggestions would be greatly appreciated. Thanks, Jon
http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:rate_of_change http://www.investopedia.com/articles/technical/02/091002.asp
Thanks for the replies. I understand what the ROC indicator does, however that is not what I am looking for. Specifically, I am trying to find a way to chart new 20-day highs/lows, 65-day highs/lows, etc etc ... for the market indexes themselves. Like I previously said, I currently use the market momentum page at barchart for this purpose, however those are only data points and from what I can tell, they do not offer any form of charting that information. My attempt here is to simply overlay these high/low charts on top of the indexes themselves in order to spot divergences. I am sure that indicators such as the ROC and RSI have similar functionality, but I would rather use this particular data. Thanks again, Jon
The problem with the usual mo indicators is that they use a static "n".. which of course one can manually adjust. Another way (and my preferred) is to use RSI and manually adjust the number of periods to match the current circumstance. Example: Market made a dip low 7 days ago, and is now either testing prior high or has made slightly new high... you want to know if there is a momentum divergence. Using RSI, you choose "7" as the period. That will compare the [current] entire 7-day swing since the dip low vs. the "final 7 days" of prior upswings. If the current rally continues, you increase the "period" each day for comparison.
I use amibroker for this type of analysis...it's very easy. Let me know if you purchase it and I'll give you the code. Best, LB