StockFetcher Forums · General Discussion · IF YOU CAN FIND IT...ILL LEAVE SF FOR GOOD!!!<< 1 2 3 4 >>Post Follow-up
alf44
2,025 posts
msg #42025
Ignore alf44
3/14/2006 2:47:00 PM

...oh boy !

I saw that one coming ! :)


nikoschopen
2,824 posts
msg #42027
Ignore nikoschopen
modified
3/14/2006 3:13:37 PM

On 3/12/2006, TRO in his infinite wisdom promiscuously stated: POSITIVE DIVERGENCE IS LOWER PRICES MAKING HIGHER READINGS ON AN INDICATOR.

No matter how unclear ure definition of divergence is, I hope you don't just mean price going up while ure joe-sixpack oscillator is hitting the gutter, and vice versa. A true (bullish) divergence is when the damn price is making a lower high (from the previous high) and the oscillator is making a higher low (from the previous low). The reason for considering the previous high or low, which you conveniently forgot to espouse, is that you can't connect the dots; and in lieu of those inconvenient dots, you can't draw the damn trendlines. How the hell are you suppose to know if the trend is up or down without trendlines?



alf44
2,025 posts
msg #42029
Ignore alf44
modified
3/14/2006 3:33:09 PM

...with all due respect, niko...

Your "definition" isn't correct either ! imo

------------------------

You say...

"A true (bullish) divergence is when the damn price is making a lower high (from the previous high) and the oscillator is making a higher low (from the previous low)."

That's NOT what any definition that I have ever read regarding "bullish divergence" says !

-------------------------

You might want to re-read that and make the appropriate edit/correction. Or, correct me if I am somehow misunderstanding your definition (which seems sort of bassakwards to me).


Regards,

alf44



nikoschopen
2,824 posts
msg #42032
Ignore nikoschopen
3/14/2006 4:15:50 PM

Alf, thanks for bringing that to my attention. I guess nothing can be considered in a vacuum. Allow me to regurgitate in its proper perspective.

According to the script, bullish divergence is formed when price has been declining in which the first low is followed by another lower low. At the same time, the oscillator registers a first low that is followed by a higher low.


alf44
2,025 posts
msg #42033
Ignore alf44
3/14/2006 4:29:14 PM

...much better ! :)

-----------------------

WOW !!!

I can hardly wait till we get to the discussion(s) on "Hidden Divergence" or "Reverse Divergence" as it's sometimes referred.

That will really make lil riggsy's eyes glaze over !


Regards,

alf44



nikoschopen
2,824 posts
msg #42034
Ignore nikoschopen
3/14/2006 4:34:27 PM

BTW, here's the divergence filter that I wrote on behest of RIGG's plea when he first came on the scene with the exclamation, "I can't believe it..."

Fetcher[
Set{Hi10, high 10 day high}
Set{Hi30, high 20 day high 10 days ago}
Set{SR, Smoothed Rate of Change}
Set{SR10, SR 10 day high}
Set{SR30, SR 20 day high 10 days ago}
Hi30 below Hi10
SR30 above SR10
price above 20
and avgvol(20) above 300000

draw Smoothed Rate of Change
do not draw Hi10
do not draw Hi30
do not draw SR10
do not draw SR30
]

The reason why post this is that you need more than 2 days to find a meaningful divergence.


scvidar
51 posts
msg #42035
Ignore scvidar
3/14/2006 4:46:53 PM

It appears that here we have the tendency to distinguish ourselves in speech, we have an example of speech divergence, in that we diverge from the speech of others. Thus we are trying to distinguish between what background noise and the essence that retains itís spectral information. For obvious reasons, a speaker may deliberately diverge from the speech of his interlocutor, thus signalling his intention to disagree with, or even repudiate, him.

The only thing I havenít figured out is how to make money off of it. LOL

Karl


TheRumpledOne
6,358 posts
msg #42043
Ignore TheRumpledOne
3/14/2006 6:49:23 PM

"According to the script, bullish divergence is formed when price has been declining in which the first low is followed by another lower low. At the same time, the oscillator registers a first low that is followed by a higher low."

I agree Niko.

Which, you must agree means lower prices making higher indicator readings.

If I didn't know what divergence was, I couldn't have programmed the divergence display.




drew9
171 posts
msg #42045
Ignore drew9
3/14/2006 7:18:56 PM

So Riggs, Just could not resist. Are we to assume now you are unemployed? Last I knew you were not able to post any new filters per your new "employer." Was it not knowing what "divergence" meant what finally woke him up? LOL

Regards,

Drew


nikoschopen
2,824 posts
msg #42046
Ignore nikoschopen
3/14/2006 8:14:39 PM

Although there might not be any flaw in ure coding, there is a flawed logic in ure understanding of divergence nonetheless. By ure admission of the validity of my definition, if bullish divergence is "...formed when price has been declining in which the first low is followed by another lower low. At the same time, the oscillator registers a first low that is followed by a higher low", then there must be a secondary price low and RSI(2) high. The below filter is the final version of the divergence filter you posted. If I'm not badly mistaken, this filter in no way tells me anything about any secondary high or low. It only shows me where the current price and RSI(2) readings are in relation to their previous 6, 7, 8, 9 days reading. It's only when price rebounds from its second lower low while the RSI bounces off its higher low can will even discuss bullish divergence.

Fetcher[
/* Positive Divergence 6 - 9 days*/

set{nd2,count(close below close 6 days ago,1) * count(rsi(2) above rsi(2) 6 days ago,1)}}

set{nd3,count(close below close 7 days ago,1) * count(rsi(2) above rsi(2) 7 days ago,1)}

set{nd4,count(close below close 8 days ago,1) * count(rsi(2) above rsi(2) 8 days ago,1)}

set{nd5,count(close below close 9 days ago,1) * count(rsi(2) above rsi(2) 9 days ago,1) }

Set{n1, nd5 * 1}
Set{n2, nd4 * 10}
Set{n3, nd3 * 100}
Set{n4, nd2 * 1000}

Set{na, n1 + n2}
Set{nb, n3 + n4}
Set{PD6789, na + nb}

add column PD6789

/* END POSITIVE DIVERGENCE DISPLAY */
]




StockFetcher Forums · General Discussion · IF YOU CAN FIND IT...ILL LEAVE SF FOR GOOD!!!<< 1 2 3 4 >>Post Follow-up

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