“DivergEngine2001”

DIVERGENCE

• Divergence Detection for TradeStation
• Assists in buying bottoms and selling tops
• Detects when trends are weakening
• Helps determine when to fade break-outs

Selling tops and buying bottoms is one of the most difficult trading strategies. It is highly risky because you need to determine when a trend is weakening. Divergence is one of the few tools that generates effective signals when trends weaken. Divergengine2001 is an advanced divergence detection utility that uses sophisticated algorithms to perfectly synchronize the peaks in the oscillator with the peaks in price. Divergengine2001 is a collection of systems, indicators and user functions that detect and display divergence.

There are all kinds of divergences so it might be helpful to review Divergence Theory. The classic divergence is between price and an oscillator such as RSI or Stochastics (see DivergEngine:Original). Divergence can be bullish or bearish. Bullish divergence is when prices move to new highs and the oscillator does not. Bearish is when price moves to new lows and the oscillator does not.

DIVERGENGINE2001 FEATURES DivergEngineUnb2001

• Detect Price-to-Price or Price-to-Oscillator Divergences
• Detect Reverse Divergences
• Use Bounded Oscillators-(RSI, Stochastics)
• Use Unbounded Oscillators-(MACD, CCI etc.)
• Multipeak Divergences
• Customized Divergences

MTA Paper - A paper presented to the MTA on 5-19-01 proving the validity of divergence.