Hello Howard, I don't want to hijack the thread but I wish to add my observation / comments on divergence. There are number of different divergences to consider. All the AFL examples I found (including the once I attempted to program myself) do not work. They identify divergence where the is none or they fail to find an obvious occurrence of divergence. I'd like to see an AFL example of simple price / indicator divergence where the price had been making higher highs for say 10 bars out of 14 (excl. inside days) and the indicator had been showing lower values for the same period. On the more complex side I tried and failed to define one of Jake Bernstein's divergence approaches which could be summarized as follows; - find new peak (last high after price retraced say 4%) - find the value of the indicator (RSI etc) valuewhen (new $ peak) - find previous (second to last) peak on the indicator - find the price valuewhen(indicator 2nd peak) - find the last low on the indicator (between last peak and 2nd peak)
The above is the setup and needs to occur within 28 price bars. The trigger (Buy) will be if the price closes below its 2nd peak value or the indicator moves (closes) below its last low value (last low defined as a low between last peak and 2nd peak). I hope this is clear and precise enough as AFL rules. Kind Regards Richard --- In [email protected], Howard B <howardba...@...> wrote: > > Hi Vishvesh -- > > Please reply to an open thread rather than beginning a new one. > > In order to program an indicator for divergence, it must first be described > as a formula. Description of the visual appearance is not adequate. Can > you describe divergence as a formula? > > Thanks, > Howard > > > On Fri, Jun 11, 2010 at 11:43 AM, Vishvesh <vishvesh.chau...@...>wrote: > > > > > [Attachment(s) <#129281c24215e039_TopText> from Vishvesh included below] > > > > When i say divergence it mean prices(low/high/close) have made newer > > reading but the RSI or MACD failed to do so. I have attached chart for ur > > perusal. > > > > Regards > > Vishvesh > > > > > > > > On Fri, Jun 11, 2010 at 10:12 PM, Howard B <howardba...@...> wrote: > > > >> > >> > >> Hi Vishvesh -- > >> > >> If you can define divergence in an unambiguous way, it can be programmed. > >> What is your definition? > >> > >> Thanks, > >> Howard > >> > >> > >> On Fri, Jun 11, 2010 at 10:11 AM, Vishvesh <vishvesh.chau...@...>wrote: > >> > >>> > >>> > >>> Hello Friends, > >>> > >>> I was wondering is there AFL available which highlights the price bar > >>> when there is divergence in momentum (RSI,MACD) etc. > >>> > >>> Any help highly appreciated, > >>> > >>> Thanks & Regards > >>> Vishvesh > >>> > >> > >> > > > > >
