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How to detect the divergences

There are many different ways to check for divergences. One of the simplest is to use Rate of change indicator and EXPLORATION feature of Automatic Analysis window:

– Analysis -> Formula Editor
– enter:
 

// 5 day rate of change of close
PriceUp ROCC) > 
// 5 day rate of change of MACD histogram
MacdUP ROCMACD() - Signal(), ) > 0
BullishDiv NOT PriceUP AND MACDUp;
BearishDiv PriceUP AND NOT MACDUp;
Filter BullishDiv OR BearishDiv;
AddColumnBullishDiv"Bullish Divergence"1.0
       
colorDefaultIIf(BullishDivcolorGreencolorDefault ) ); 
AddColumn
BearishDiv "Bearish Divergence"1.0
       
colorDefaultIIf(BearishDiv colorRedcolorDefault) );

– Tools -> Send to Auto-analysis
– Apply to: All Symbols, N last quotations = 1
– press EXPLORE

Tools -> Send to Auto-analysis- Apply to: All Symbols, N last quotations = 1- press EXPLORE

A different approach can use linear regression instead:
 

// 10 day linear regression slope of close
PriceUp LinRegSlopeC10 ) > 
// 10 day linear regression slope of MACD histogram
MacdUP LinRegSlopeMACD() - Signal(), 10 ); 

 

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