Tutorial 26 | An improved stochastic – price divergence indicator

Welcome to tutorial 26 in this series of tutorials to help you learn TradeStation EasyLanguage programming skills. The idea behind the series is that if you can program with TradeStation EasyLanguage yourself, you will have a skill that will enable you to try out trading ideas without the need to use a professional programmer.

The purpose of this video tutorial is to demonstrate the programming techniques rather than to create a tradeable indicator. This tutorial was created using TradeStation version 8.6.

This video tutorial aims to explain how to create an indicator that searches for occasions of simple divergence between price an a stochastic indicator.

To avoid typing the indicator, you may download an ELD for only $14.95:

TO THE BEST OF BILLY FIRE LLC'S KNOWLEDGE, ALL OF THE INFORMATION ON THIS PAGE IS CORRECT, AND IT IS PROVIDED IN THE HOPE THAT IT WILL BE USEFUL. HOWEVER, BILLY FIRE LLC ASSUMES NO LIABILITY FOR ANY DAMAGES, DIRECT OR OTHERWISE, RESULTING FROM THE USE OF THIS INFORMATION AND/OR PROGRAM(S) DESCRIBED, AND NO WARRANTY IS MADE REGARDING ITS ACCURACY OR COMPLETENESS. USE OF THIS INFORMATION AND/OR PROGRAMS DESCRIBED IS AT YOUR OWN RISK.

ANY EASYLANGUAGE OR POWERLANGUAGE TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (AND PARTS THEREOF) AND ASSOCIATED TECHNIQUES REFERRED TO, INCLUDED IN OR ATTACHED TO THIS TUTORIAL OR PROGRAM DESCRIPTION ARE EXAMPLES ONLY, AND HAVE BEEN INCLUDED SOLELY FOR EDUCATIONAL PURPOSES. BILLY FIRE LLC. DOES NOT RECOMMEND THAT YOU USE ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS (OR ANY PARTS THEREOF) OR TECHNIQUES. THE USE OF ANY SUCH TRADING STRATEGIES, SIGNALS, STUDIES, INDICATORS, SHOWME STUDIES, PAINTBAR STUDIES, PROBABILITYMAP STUDIES, ACTIVITYBAR STUDIES, FUNCTIONS AND TECHNIQUES DOES NOT GUARANTEE THAT YOU WILL MAKE PROFITS, INCREASE PROFITS, OR MINIMIZE LOSSES.

Video Part 1

In the second part of this tutorial I describe how you can modify the program created above to also look for divergences at the high side (i.e. when a price pivot makes a higher high, or highs are equal, but the top pivot on the stochastic makes a lower high.

Video Part 2

To avoid typing the indicator, you may download an ELD for only $14.95:

If you see any errors in this tutorial - or I have not made something clear, I would be most grateful if you could please let me know. You can e-mail me at: tutorials@markplex.com. Also, let me know if you have any ideas for new tutorials.