Registered User
Joined: 11/21/2007
Posts: 2
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I want to create a scan that will show me the divergence between the price chart and the MACD. Can someone provide some advise? Thanks.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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It would depend on how you define divergence?
Over how long a period?
Your MACD settings?
MACD or Histogram?
Thanks
diceman
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Registered User
Joined: 11/21/2007
Posts: 2
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I use a price chart with a MACD below it with settings at 12, 26, and 9. I look at all time periods from 1 minute to weekly, and all in between. I look for the MACD moving in the opposite direction of the price chart, focusing on double tops, head and shoulders patterns and simple divergence; ie: current weekly chart on INDU. There is a very clear divergence between MACD and P between July and now; significant double top on P, with divergence on MACD.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Let's start off simple.
This PCF looks for what some would call a positive 10-day price to MACD divergence..
Let me know what you think of the stocks this finds and we can start to fine tune from there.
Keep in mind we MUST define the period for the "divergence" (I defined it as 10 days, for example). This uses a daily chart as well.
AVGC5<AVGC5.5 AND
(XAVG(XAVGC12,9)-XAVG(XAVGC26,9)+
XAVG(XAVGC12.1,9)-XAVG(XAVGC26.1,9)+
XAVG(XAVGC12.2,9)-XAVG(XAVGC26.2,9)+
XAVG(XAVGC12.3,9)-XAVG(XAVGC26.3,9)+
XAVG(XAVGC12.4,9)-XAVG(XAVGC26.4,9))>
(XAVG(XAVGC12.5,9)-XAVG(XAVGC26.5,9)+
XAVG(XAVGC12.6,9)-XAVG(XAVGC26.6,9)+
XAVG(XAVGC12.7,9)-XAVG(XAVGC26.7,9)+
XAVG(XAVGC12.8,9)-XAVG(XAVGC26.8,9)+
XAVG(XAVGC12.9,9)-XAVG(XAVGC26.9,9))
- Craig
Here to Help!
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