Plots Divergence Lines Right on the Chart
Dynamically plots trendlines and labels on the chart showing places where positive and negative divergence are present. A custom scan and chart based alerts are included. Able to plot swing high and lows. Also includes a color legend to easily identify one type of divergence from another. Along with the new indicator we have published a video titled “TradeStation Divergence Lines Indicator”. In this video we show how to adjust the settings and run the scan. Included in the video is a live chart demo showing how the chart based alerts function in real time. At the request of viewers, we have also added a companion study, available separately. The companion study measures hidden divergence.
- Indicator Type: Momentum
- Indicator Basis: Price momentum diverging from price action
- Time Frames: All supported time frames and aggregation periods
- Trade Setups:
- Trend reversals
- Taking profits
We realize there are many techniques employed for reading divergence. We tried to be as accommodating as possible using a variety of features in the TradeStation platform. I’m sure you will be very excited to see the many ways these indicators can be customized to fit your needs.
How To Order:
When you are ready to order you can do so on our TradeStation Premium Trading Tools page.
Update 4/20/22: New user inputs allow adjusting the line style and line weight of the divergence lines
User inputs have been added to adjust the style and line weight of the trend-lines plotted on the chart. Screenshot to the left shows where these new settings have been added.
The links below will show you how to select the numeric value that suits your preferences:
- Line Style: https://help.tradestation.com/10_00/eng/tsdevhelp/elobject/enumeration/styletype_enumeration.htm
- Line Weight: https://help.tradestation.com/10_00/eng/tsdevhelp/elobject/enumeration/weight_enumeration.htm
Update 4/20/22: New column has been added to RadarScreen and scans which allow users to scan for individual types of divergence signals. Open the PDF document below for full step-by-step instructions:
TradeStation Version Support: Current version works on both 9.5 as well as 10
Previous versions may be supported but have not been tested.
IMPORTANT NOTICE ABOUT SUBSCRIPTION REQUIREMENTS
In order to make full use of all the features demonstrated in this video you need to check your current subscription status. There are fees associated with RadarScreen and Real Time Data. See the screenshot below showing the required minimum subscriptions levels.
Need more information?
Within the video we provide the link showing how and where to place your order.
For your convenience, here is an index table showing how to navigate the video to get to the section(s) you want to view.
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Watch the video, TradeStation Divergence Lines Indicator below:
Technical description of how the code works:
The code is designed to locate swing pivots in price. This is the first step. The swing pivots are defined using a default lookback period of 3. Increasing the lookback period causes the code to locate larger structures (macro as opposed to micro). The swing pivots are set by default to compare highs and lows. This can be adjusted to compare the close of each candle instead of the high/low. When plotted, each swing pivot is marked with a blue square.
For each swing pivot, the code compares the value of the lower study at the current swing pivot to the value of the lower study at the previous swing pivot. Lower swing pivot with a higher price momentum will generate a positive divergence signal. Higher swing pivot with a lower price momentum will generate a negative divergence. The default is to compare (on the price chart) low to low and high to high, in order to determine if swing pivots are higher or lower. This behavior can be adjusted so that the comparison is made from close to close.
Before requesting to purchase any of these indicators it is very important that you watch the demo video, otherwise you will not have the knowledge needed to adjust the indicator settings to get the behavior you seek.
DISCLAIMER: I AM NOT A CERTIFIED FINANCIAL ADVISOR AND NOTHING IN THIS VIDEO OR TEXT IS AN ADVERTISEMENT OR RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT. NOR IS THIS VIDEO OR TEXT INTENDED TO INSTRUCT YOU ON HOW TO MAKE BUY OR SELL DECISIONS USING ANY OF THESE INDICATORS.