MACD Divergence setup

• 06/28/2021 at 3:26 PM #172660
  Mike Boorman

  I know there have been plenty of indicators written for divergence in this forum, but having looked through all of them I still can’t quite grasp how to adapt them for my purposes, so I wonder if anyone can help me with this scenario?

  I want to capture the bar that contains the previous lowest low in the range (in this case it would be the 9th bar – see screengrab), and then calculate whether or not the MACD at that bar is lower than the MACD at current bar close.

  Currently my code is only able to calculate divergence of the MACD based on current bar close versus the bar that is defined by the static lookback range (in this case 15).

  Does anyone know how I could query the MACD with a lookback bar that is derived from a previous low?

  Thank you in advance…

  Divergence rough code

  DEFPARAM CumulateOrders = False back=15 //bars to look back for calculating low longentryflag=0 macconf= MACD[12,26,9](close) > MACD[12,26,9][back] IF low < lowest[back] and close > open and close > ExponentialAverage[5](low) THEN longentryflag=1 if not onmarket and macconf and longentryflag=1 then sl=max(5,AverageTrueRange[14](close)) tp= sl*2 Set target profit tp Set stop loss sl BUY 1 PERPOINT AT MARKET endif ENDIF graph macconf

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  DEFPARAM CumulateOrders = False     back=15 //bars to look back for calculating low   longentryflag=0   macconf= MACD[12,26,9](close) > MACD[12,26,9][back]   IF low < lowest[back] and close > open and close > ExponentialAverage[5](low) THEN longentryflag=1     if not onmarket and macconf and longentryflag=1 then sl=max(5,AverageTrueRange[14](close)) tp= sl*2 Set target profit tp Set stop loss sl BUY 1 PERPOINT AT MARKET endif ENDIF   graph macconf

   

  

  Mike Boorman

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  06/29/2021 at 10:40 AM #172706
  robertogozzi

  1. assume the current LOW is the lowest within back bars
  2. scan the previous back bars for a previous low, starting from back-1 bars, for another back bars
  3. us a FOR…NEXT iteration to find the bar where that happened, THAT will be the bar when you can check MACD for a divergence

  CurLow = lowest[back](low) IF low = CurLow THEN CurMACD = MACD(12,26,9)(close) PriorLow = lowest[back](low[back]) FOR i = 0 TO (Back - 1) IF low[i + Back] = PriorLow THEN PriorMACD = MACD(12,26,9)(close)[i + back] PriorBAR = BarIndex[i + back] Break ENDIF NEXT ENDIF

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  CurLow = lowest[back](low) IF low = CurLow THEN    CurMACD  = MACD(12,26,9)(close)    PriorLow = lowest[back](low[back])    FOR i = 0 TO (Back - 1)       IF low[i + Back] = PriorLow THEN          PriorMACD = MACD(12,26,9)(close)[i + back]          PriorBAR  = BarIndex[i + back]          Break       ENDIF    NEXT ENDIF

  Not tested.

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  Mike Boorman

  

  robertogozzi

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  06/29/2021 at 1:26 PM #172722
  Mike Boorman

  Thank you very much Roberto. I think this is close but there is still something I am doing incorrectly. The only way I could get my whole code to work was by querying the MACD with this: CurMACD > PriorMACD…….. but that is only doing a static read of [back], as before.

  I’ve attached a screengrab of where there should be an entry at 15:00, based on a rising MACD from the low at 14:05. My “macconf” needs to be true for there to be an entry at 15:00. I’m guessing that maybe I need to use PriorBAR somewhere else in the code? But I’m not sure how. Would you mind helping me here?

  Thank you 🙂

  Divergence lookback code

  DEFPARAM CumulateOrders = False back=15 longentryflag=0 CurLow = lowest[back](low) IF low = CurLow THEN CurMACD = MACD[12,26,9](close) PriorLow = lowest[back](low[back]) FOR i = 0 TO (Back - 1) IF low[i + Back] = PriorLow THEN PriorMACD = MACD[12,26,9](close)[i + back] PriorBAR = BarIndex[i + back] Break ENDIF NEXT ENDIF macconf= CurMACD > PriorMACD IF close < PriorLow and close > ExponentialAverage[5](low) THEN longentryflag=1 if not onmarket and macconf and longentryflag=1 then sl=max(5,AverageTrueRange[14](close)) tp= sl*1 Set target profit tp Set stop loss sl BUY 1 PERPOINT AT MARKET endif ENDIF graph macconf

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  DEFPARAM CumulateOrders = False   back=15   longentryflag=0   CurLow = lowest[back](low) IF low = CurLow THEN CurMACD  = MACD[12,26,9](close) PriorLow = lowest[back](low[back]) FOR i = 0 TO (Back - 1) IF low[i + Back] = PriorLow THEN PriorMACD = MACD[12,26,9](close)[i + back] PriorBAR  = BarIndex[i + back] Break ENDIF NEXT ENDIF   macconf= CurMACD > PriorMACD   IF close < PriorLow and close > ExponentialAverage[5](low) THEN longentryflag=1     if not onmarket and macconf and longentryflag=1 then sl=max(5,AverageTrueRange[14](close)) tp= sl*1 Set target profit tp Set stop loss sl BUY 1 PERPOINT AT MARKET endif ENDIF   graph macconf

   

  

  Mike Boorman

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