AutoDiv™ Universal Divergence Tool

/, Indicators, Indicators, Swing Analysis/AutoDiv™ Universal Divergence Tool

AutoDiv™ Universal Divergence Tool

$395.00

When an oscillator valley is shallower than its predecessor while the price corresponding to the most recent oscillator valley is lower than the price corresponding to the previous oscillator valley, a “normal” diverging condition has occurred which generally signals an imminent price reversal to the upside.

Description

Conversely, when a oscillator peak is lower than its predecessor while the price corresponding to the most recent oscillator peak is higher than the price corresponding to the previous oscillator peak, a “normal” converging condition has occurred which generally signals an imminent price reversal to the downside.

A “Type 2” divergence occurs when an oscillator valley is deeper than its predecessor while the price corresponding to the most recent oscillator valley is higher than the price corresponding to the previous oscillator valley or when an oscillator peak is higher than its predecessor while the price corresponding to the most recent oscillator peak is lower than the price corresponding to the previous oscillator peak.

The AutoDivTM Divergence Detector, which is considerably superior to the TradeStation Technologies for TradeStation “canned” divergence study, generates a signal in the form of a colored dot above or below the price when a divergence indicators will clearly identify most significant price trend turns.

An oscillator low with a STRENGTH input of 1 will have at least one adjacent higher bar to the left and one adjacent higher bar to the right of it. If the STRENGTH input is set to 3, then the oscillator low must be lower than the preceding three bars and the following 3 bars. The divergence dot is plotted on the bar where the divergence is confirmed, (i.e. 2 bars after the swing high/low for a STRENGTH of 2).

A “Trend” or “Type II” divergence occurs when an oscillator valley is deeper than its predecessor while the price corresponding to the most recent oscillator valley is higher than the price corresponding to the previous oscillator valley, or when an oscillator peak is higher than its predecessor while the price corresponding to the most recent oscillator peak is lower than the price corresponding to the previous oscillator peak. Trend divergences were popularized by Connie Brown.

The AutoDiv 2TM Divergence Detector generates a signal in the form of a colored dot above or below the price when either a Pivot or Trend divergence condition exists between price and any oscillator for which a User Function is available.

Podcast on Divergence
Click here for the accompanying PDF and read along.

Additional information

Platform

, ,

Reviews

There are no reviews yet.

Only logged in customers who have purchased this product may leave a review.