Thanks Richard for ur clarification, Howard i have not yet work out on exact formula definition for divergence. Thanks for ur response. I will try to write an algo on said concept and then will get back to u.
Thanks & Regards Vishvesh On Sun, Jun 13, 2010 at 5:56 AM, Richard <[email protected]> wrote: > > > 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] <amibroker%40yahoogroups.com>, 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.chauhan@ > ...>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 > > >>> > > >> > > >> > > > > > > > > > > >
