REQUEST TO CODE OPPOSITE DIVERGENCES

• 01/29/2017 at 5:04 PM #22964
  ALE

  Hello Guys, Nicolas

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

  Thanks in advance

  Ale

  

  ALE

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

  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.

  

  Nicolas

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

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

  

  ALE

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

  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

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  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

   

  

  Nicolas

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  01/31/2017 at 4:38 PM #23300
  ALE

  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

  

  ALE

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