MACD Divergence scan

Discussion in 'Technical Analysis' started by DennisAndLisa, Mar 17, 2003.

  1. Hi all.....I'm looking for a MACD tc2000 scan that will pick up divergences between price and MACD histogram. Any suggestions?

    Thanx,
    Dennis
     
  2. skip it.
     
  3. The [positive or negative] divergence problem is solved in
    http://www.amibroker.com/library/detail.php?id=49
    http://www.amibroker.com/library/detail.php?id=48
    It works for ANY indicator, not only Stochastics.
    It may also be handled through trendlines slope for both Price and Indicator
    http://www.amibroker.com/library/detail.php?id=103
    aS is the slope and a divergence occurs when aS[price]*aS[indicator]<0
    With the same technique you may see various patterns for an indicator graph [triangles, wedges etc]
     
  4. skip it??? a divergence is the most powerful tool in tech analysis, if you know how to handle it. It has alwyas been difficult to scan for, as what constitutes a divergence is somewhat subjective. If the Amibroker scan can reliably pick it out I would say that is fantastic.
     
  5. nkhoi

    nkhoi Moderator

    could you include an example along with your formular for those who don't have ami yet, thank.
     
  6. Above codes are based on objective criteria, nothing subjective there. You define the divergence criteria, turn into code and just scan. A single stock or the whole database [you may know how many stocks presented an RSI negative divergence and plot it as a daily function ! I have already coded the PDI/NDI [positive divergence issues, negative divergence issues]. Full codes available at AFL Library. They work fine and they are free for any user.
     
  7. Codes are in above references.
     
  8. paradox

    paradox

    I tried the negative divergence scan formula as is. The capture
    shows the sell signals on the $COMPQ.

     
  9. Those sell signals look pretty good. Now someone put together a complete system using money management. good job Tsokakis and paradox.
     

  10. You may compute* two important daily functions, the PDI [stocks with positive stochastic divergence, the green curve] and the NDI [stocks with negative stochastic divergence, the red curve] for the N100 database. Sharp peaks give the main turning points for the whole market.
    It is one of the best indication, when available of course.
    These functions are more expressive than the simple AdvIssues, DecIssues.
    You may also check RSI, CCI and, in general, any indicator divergence, over the whole market.
    The amibroker scan needs some 2 or 3 seconds for N100 for a 3year period, using a P III/800MHz.
    These composite calculations are available through Amibroker and Wealth-Lab, as far as I know.
    *Ref
    http://www.amibroker.com/library/detail.php?id=180
     
    #10     Mar 19, 2003