Program 27 | MACD divergence for charts, scanner and RadarScreen

MACD Divergence

Program 27 is a TradeStation Indicator developed using EasyLanguage designed to look for potential divergence between price and a MACD indicator.

Image showing the MACD indicator included in program 27

MACD (Moving Average Convergence Divergence) returns the difference between a fast and slow exponential moving average based on the same price. On a chart or RadarScreen the program plots the values for MACD (the red line in the image on the right), the exponential average of the MACD (the blue line in the image on the right) and the difference between the MACD and the exponential average of the MACD (the same as the TradeStation MACD indicator–see the blue histogram in the image on the right). The indicator colors may be changed for charts in the indicator color settings.

Program 27 on RadarScreen.

The program also looks for MACD divergence between price and the MACD. The user may select (by user input) whether to use:

  • MACD
  • Exponential average of the MACD
  • Difference between the MACD and the exponential average of the MACD

when searching for divergence (see user inputs below). When a potential divergence is found a line is drawn between price pivots corresponding to pivots in the MACD. Since price and MACD pivots do not necessarily occur on exactly the same bar, the program has a user input to determine how many bars apart the price pivot and the MACD pivot can occur. The price pivot can occur before the MACD pivot, or vice versa.

This UNPROTECTED program (i.e. the TradeStation EasyLanguage indicator) is available for immediate download for $129.95 by clicking the ‘add to cart’ button to pay using Credit card or PayPal.

The program was developed in TradeStation 9.0 and work on intraday, daily, weekly, and monthly charts. The indicator may be applied to tick charts, but the pattern text may not display correctly due to an EasyLanguage drawing tool limitations. The download includes a link to a bonus video that gives an overview of how the program functions and a version of the program in plain text format.

I have also created a MultiCharts edition of the program for use on MultiCharts charts and the MultiCharts market scanner (equivalent to TradeStation’s RadarScreen).

This UNPROTECTED program (i.e. MultiCharts indicator) is available for immediate download for $129.95 by clicking the ‘add to cart’ button to pay using Credit card or PayPal. This download does not include the bonus video or a version of the program in plain text format.

If you are a Gold Pass member make sure you enter the special coupon code to get 20% discount off these prices.

An example program 27 workspace showing charts, radarscreen and scanner

Program 27 applied to 10 minute GBPUSD chart. In this case the program is looking for divergence between price and the MACD value (i.e. user input: WhichMACD is set to 1)

Applied to 10 minute @ES chart. WhichMACD is set to 3. Price makes a lower lower and MACD makes a higher low.

This program uses a different method from that employed in some of the earlier CCI divergence programs. I explain this in a video which accompanies the download.

The program may be applied to charts, RadarScreen, and/or the scanner. I demonstrate this in the video below. It also includes alert functionality for RadarScreen which my be controlled by the indicator settings.

Inputs

MaxArraySize( 3 ), // Maximum = 5. Determines how many previous pivots are comapared each time a new price pivot and corresponding MACD pivot are discovered
WhichMACD( 3 ), // Determines whether program uses MACD, the exponential average of the MACD, or the difference between the MACD and the exponential average of the MACD to test for divergence
MACDPrice( C ), // Input to MACD
MACDLength( 9 ), // Input to MACD
FastLength( 16 ), // Input to MACD
SlowLength( 26 ), // Input to MACD
LowerColor( Darkgreen ), // Color of lines indicating possible bullish divergence
UpperColor( DarkRed ), // Color of lines indicating possible bearish divergence
LeftStrength( 3 ), // Left strength of pivots
RightStrength( 2 ), //Right strength of pivots
BarTol( 3 ), // The number of bars within which the price and MACD pivot must occur for the pivots to be considered to have occurred on the same bar
PriceL( Low ), // Price used to find low pivots
PriceH( High ); // Price used to find high pivots

Video demonstration

This UNPROTECTED program (i.e. the TradeStation EasyLanguage indicator) is available for immediate download for $129.95 by clicking the ‘add to cart’ button to pay using Credit card or PayPal. The download includes a link to a bonus video that gives an overview of how the program functions and a version of the program in plain text format.

The program was developed in TradeStation 9.0 and work on intraday, daily, weekly, and monthly charts. The indicator may be applied to tick charts, but the pattern text may not display correctly due to an EasyLanguage drawing tool limitations.

If you have TradeStation 9.1 or above, you might also be interested to look at program 62.

I have also created a MultiCharts edition of the program for use on MultiCharts charts and the MultiCharts market scanner (equivalent to TradeStation’s RadarScreen).

This UNPROTECTED program (i.e. MultiCharts indicator) is available for immediate download for $129.95 by clicking the ‘add to cart’ button to pay using Credit card or PayPal. This download does not include the bonus video or a version of the program in plain text format.

If you are a Gold Pass member make sure you enter the special coupon code to get 20% discount off these prices.

Please note that any screen shots on this site are examples and are not meant to imply that any of these programs will generate profitable trades. THESE INDICATORS, SHOW ME STUDIES, STRATEGIES AND OTHER PROGRAMS HAVE BEEN INCLUDED SOLELY FOR EDUCATIONAL PURPOSES.

TO THE BEST OF MARKPLEX CORPORATION’S KNOWLEDGE, ALL OF THE INFORMATION ON THIS PAGE IS CORRECT, AND IT IS PROVIDED IN THE HOPE THAT IT WILL BE USEFUL. HOWEVER, MARKPLEX CORPORATION 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. MARKPLEX CORPORATION. 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.

 

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