I'd like to create a PCF that I can use to identify a divergence in a 9 period TSV, (on a 4 hour graph) from price, over a 5 or 7 periods.  Specifically, I'm looking for situations where price has been rising or possibly going flat and TSV begins to fatigue, or turn lower, in other words where the slope of price is stonger than the slope of TSV (9 period).  If price has been in a downtrend and is swinging back to a moving average, the TSV may be negative, making this construction a bit difficult, to say the least.
I wonder if you can help me out with constructing a formula for that.

Thanks

Al

A simple way to search for a divergence between Price History and TSV over the most recent 7-bars.

Click on Price History and select Create Scan Condition. Then select Moving Up from the Condition drop-down menu. Then set the Period of the Condition to the number of bars over which you wish to check for a divergence (in this case, 7).

Create Conditions from Your Chart (5:25)

Then do the same thing with the TSV indicator, but choose Moving Down instead of Moving Up. Note that you will not want to use the % versions of either the Moving Down or Moving Up conditions when applied to price because TSV can cross through 0.

You can then add both the Conditions to the same EasyScan. Checking for a divergence where Price History was Moving Down and TSV was Moving Up would just be a matter of switching around how you created the Conditions.

Building a Scan with Multiple Conditions (7:29)

A variation on this would be to add a 7-period Linear Regression Line indicator to one or both of the indicators and then click on the Linear Regression Line instead of the indicator to create the moving up and moving down conditions.

You would want to set the period of the moving up or moving down condition applied to a Linear Regression Line to just 1 as the period of the period of the Linear Regression Line is actually checking for the slope over the period.

Thanks Bruce,

If I applied LR to the indicator, and then created the MU/MD conditions, would the system recoginze the LR as applying to the underlying indicator? I've been a bit unsure about that.

In some instances, I think LR would pick up subtle divergences before they became obvious.

Al

Yes, as long as the Linear Regression Line you actually click on is applied to the TSV, the MU/MD conditions created by clicking on the LR line and selecting Create Scan Condition should be based on the LR of the TSV.

Great thanks.

I'll do some work with this.

Al

Bruce, I'm at a bit of a loss determining which velocity to select.  Can you provide an indication of what 'slowly' 'fast' and 'very fast' actually measure?

Slowly, Fast and Very Fast are not unambiguously defined when selecting Create Scan Condition and choosing Moving Down Smart or Moving Up Smart. The "smart" algorithm is proprietary and I do not know how it is calculated. It is just designed as a way to use a English language descriptions and get a result when you don't need to know how it works.

Slowly does not exclude Very Fast (because it only has to be moving at least Slowly to pass).

Very Fast does exclude Slowly (because it must be moving at least Very Fast).

If you need to know the details of how a Moving Up Condition created by selecting Create Scan Condition works, you would need to use either the Moving Up Net or Moving Up % option instead of Moving Up Smart (which would just leave Net for the TSV since you wouldn't want to use %).

That's cool. I'll begin by applying the slowly setting and if that produces too many results, I can experiment with different slider settings on price and or the indicator in question.

Thx

You're welcome.