General Topics
Markets
Technical Topics
Brokerage Firms
Company Specific
Community Lounge
Site Support

# Excel Divergence Formula

Discussion in 'Trading Software' started by gemini_315, Dec 15, 2004.

1. ### gemini_315Guest

I am looking for a formula to detect divergences between an indicator and price eg. RSI and price. I need to do this in Excel. If anyone has any info, I would be very grateful.

2. ### gemini_315Guest

Just bumping this....

I am looking for a formula to detect divergences between an indicator and price eg. RSI and price. I need to do this in Excel. If anyone has any info, I would be very grateful.

3. ### DVB

Try building a regression on both RSI and the price. Use the SLOPE function in Excel. If one has a positive slope, and the other one has negative one, you have a result. The only problem is that you have to define your time frame, but you can do a couple of formulas for different periods.

Good luck

DVB

Does anybody have a formula for this?

5. ### syswizard

Listen-up guys: this is pretty complex. I've seen some Easy Language code HUNDREDS OF LINES long attempt to do this.
Bottomline: It ain't easy.

See this guy, who has spent a lot of time researching this subject:

Inside Edge Systems is managed by Bill Brower. You can contact him several ways as follows:

Tel: 203-454-2754
Fax: 203-286-1321
email: 1000mileman@mindspring.com

Here's an idea about how you can assemble one. The conv/div indicator simply looks at the %change slopes over a fixed period. When they are in sync (convergent) it is green and positive, when they are out of sync (divergent) it is red.

Keep in mind, like all other TA, it is subjectively interpreted. But the math is objective. Here is a 5 period example.
Notice some divergent periods that were outlined.

File size:
142.3 KB
Views:
1,618