REQUEST TO CODE OPPOSITE DIVERGENCES

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  • 01/29/2017 at 5:04 PM #22964 quote
    ALE
    Moderator
    Master

    Hello Guys, Nicolas

    I’m asking to code the following opposite stochastic divergences that could be a long entry signal.

    Thanks in advance

    Ale

    01/31/2017 at 11:48 AM #23234 quote
    Nicolas
    Keymaster
    Master

    Please add a complete example from any instrument with date/hours and stochastic parameters.

    Divergences are sometimes easily spotted with eyes but a quite difficult to get them with code.

    01/31/2017 at 2:17 PM #23271 quote
    ALE
    Moderator
    Master

    Hello Nicolas,
    yes is very difficult..
    I’ve attached another picture hoping to be more clear

    01/31/2017 at 3:54 PM #23293 quote
    Nicolas
    Keymaster
    Master

    Well .. I think it should work for the bullish divergences you are trying to catch.

    But there are of course too many of them with short term period of your stochastic parameters (5,3,3). You should also try to add overbought/oversold level to catch better cases of the stochastic reversal and to avoid whipsaws that the indicator made with its moving average.

    In this code, I use the cross of the stochastic with its moving average to spot reversal and then compare the last 2 different levels with the 2 last prices.

    sto = stochastic[p,k]
avg = average[d](sto)
lookback = 20

//bullish divergence
//first sto cross
if sto crosses over avg then
currentsto = sto//[1]
currentprice = lowest[3](low)
endif

//previous sto cross
if barindex<>mybar then
for i = 1 to lookback do
if sto[i] crosses over avg[i] then
previoussto = sto[i]
previousprice = lowest[i+3](low)
mybar = barindex[i]
break
endif
next
endif

//divergence or not?
if currentsto<previoussto and currentprice>previousprice then
bulldiv = 1
else
bulldiv = 0
endif

return bulldiv
    01/31/2017 at 4:38 PM #23300 quote
    ALE
    Moderator
    Master

    Hello Nicolas,

    fantastic, its perfect. I need to observe noises to proceed to add filter and other solutions to avoid false positive signals.

    We are studing a scalper strategy based on Stochastic divergences and opposite divergences. We Keep you informed on our progress

    Thanks
    Ale

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REQUEST TO CODE OPPOSITE DIVERGENCES


ProBuilder: Indicators & Custom Tools

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ALE @aleale Moderator
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This topic contains 4 replies,
has 2 voices, and was last updated by ALE
9 years ago.

Topic Details
Forum: ProBuilder: Indicators & Custom Tools
Language: English
Started: 01/29/2017
Status: Active
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