Divergence spotter

[sbgtrading]

This indicator finds divergences between indicators and price.

If anyone has a more efficient algorithm, feel free to share!

Ben

[ale la juve ale]

Divergence Spotter

Hi,

I was wondering how to remove this indicator that I just downloaded.

I downloaded by using import ninjascript. When I try removing it using: remove ninja script it doesn't appear in the selection Box.

[randyjb]

Re: Divergence Spotter

Hi Joe... you should be able to open your Control Center, left click on Tools, left click on Edit Ninjascript, left click on Indicator... then a boxed listing of your indicators should pop up. Go to DivergenceSpotter and left click it once to highlight it.. then go down and click Delete down below that area and that should take care of your issue.

Happy Trading,
Randy

[Pete S]

Thanks for posting! I have been thinking about doing something like this myself...I will spend some time going through it and see if I have any feedback.

Pete

[Elliott Wave]

This is a great indicator, one of my favorites.

Thanks for creating it.

[sbgtrading]

Thanks for the feedback! I'm glad you're finding it valuable. Feel free to share your usage techniques.

Ben

[Elliott Wave]

I liked it so much it I even opened it up in the script editor, which was a first for me.

I added the TRIX indicator which is one of my favorites, and it actually works!

That got me thinking of trying to make it allow any indicator, by doing something like:

TheIndicator.Set(indicatorType(fastPeriod)[0])

Rather than specifically defining each one. The indicator list will be right there so it should be easy to type the correct name.

The downside it that it might not always work as expected, but there could be some surprising uses. One hurtle I can think of is determining the number of variables each indicator uses. I assume there would be an error when trying to feed two variables to an indicator that uses one and vice versa.


As for usage, I like to use the MACD, Money Flow and TRIX with longer periods than normal, sometimes simultaneously with different line types colors and sizes etc. I'm still playing around with it though and don't use it as much for decision making as I do to alert me a decision might need to be made...

[Aussie2]

Very nice. Like it. Will explore.

[vast524]

I am wondering if someone could explain how this indicator works please.
I am not quite sure how it works. I am sorry if this appears a dumb question.
I see the little pink dots forming on the chart and the value of the current dot on the price bar.
How does it show a divergence?
Regards

[sbgtrading]

Hello,
The dots are an indication that a divergence is occuring between price and an oscillator or indicator. For instance, when prices push lower and the indicator moves higher, the dots will start to form above the price bars. The dots are a quick way to tell if price and the indicator are moving in different directions.

Ben

I am wondering if someone could explain how this indicator works please.
I am not quite sure how it works. I am sorry if this appears a dumb question.
I see the little pink dots forming on the chart and the value of the current dot on the price bar.
How does it show a divergence?
Regards

[vast524]

Thanks Ben
I still am a little vague though. (Won't be the first time either)
Which indicator does work with ? I noticed that it is linked with the MACD
I guess if the dots are forming under the candle then it means the price may drop.
I noticed that the dot has a pink arrow on the price . Does this indicate a possible price?
Regards

[sbgtrading]

Here's the indicators you can select (taken from my website):
This indicator helps keep an eye on buy/sell divergence between price and a user selectable indicator (MACD, FastStoch, StochRSI, CCI, BOP, CMO, Chaikin MoneyFlow, Momentum, MoneyFlow, RSI, ROC

I'm not sure what you mean about the "pink arrow on price" but I will tell you this, the actual price values of the dots that plot is not important. I've just plotted the dots near the current price bars so you can easily see the dots (the indication of divergence occurring)...if I had plotted them far away from price action, one might not be aware of them.

Does that answer your question?

Ben

Thanks Ben
I still am a little vague though. (Wont be the first time either)
Which indicator does work with ? I noticed that it is linked with the MACD
I guess if the dots are forming under the candle then it means the price may drop.
I noticed that the dot has a pink arrow on the price . Does this indicate a possible price?
Regards

[jonesenberg]

This one is just fantastic. Question: How would one go about including OBV as a supported indicator from which to spot divergences?

[Elliott Wave]

Its not too hard.

Basically just use the existing code as a guide and put OBV in place of one of the other indicator names...

I'm greatly looking forward to NT7 when hopefully all this is in the past and we can simply select the input series for indicators just as we already can with strategies.

[sbgtrading]

Hello Jonesenberg...glad you like it!

Adding OBV would be a little difficult...since it's not an oscillator. The problem is DivergenceSpotter looks for sell divergence when the indicator is above its zero line and divergence occurs. It looks for buy divergence when the indicator is below its zero line and divergence occurs.

What we may be able to do is "normalize" OBV by using a moving average of OBV as its zero line. But, the results may be unpredictable/unreliable for trading signals.

In either case, let me tinker with it an see what will happen.

Ben

This one is just fantastic. Question: How would one go about including OBV as a supported indicator from which to spot divergences?