Program 28 | Stochastic divergence for charts, scanner and RadarScreen

Stochastic Divergence

Program 28 is a TradeStation Indicator developed using EasyLanguage designed to look for potential divergences between price and a stochastic oscillator. It works similar to program 27 which looks for divergence between price and MACD.

A program 28 workspace showing a RadarScreen window, a scanner window and two charts

The Stochastic oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. It follows the momentum of price. Some technical analysts believe that bullish and bearish divergences in the Stochastic can foreshadow reversals. The indicator plots oFastK, oFastD, and oSlowD as well as horizontal lines at user input OverBought and OverSold levels.

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

  • oFastK,
  • oFastD, or
  • oSlowD

to search for divergence (see user inputs below). The width of the plot of the type of stochastic chosen is made wider so that you can easily see which line the program is using.

Program 28 applied to a 5 minute BBY chart. The chart shows positive divergence between price and oSlowD the thick green line. Click on the image to see it in more detail.

When a potential divergence is found a line is drawn between price pivots corresponding to pivots in the stochastic (oFastK, oFastD, or oSlowD). Since price and stochastic 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 stochastic pivot can occur. The price pivot can occur before the stochastic pivot, or vice versa.

This UNPROTECTED program (i.e. the TradeStation EasyLanguage indicator) is available for immediate download for $95.95 by clicking the ‘add to cart’ button to pay using Credit card or PayPal. In addition to the TradeStation ELD I have included a plain text version of the program.

You may also download a bundled package of both program 27 and program 28 for $155-. This is equivalent to more than a 30% discount when compared with buying the two programs separately. Both programs are available for immediate download by clicking the ‘add to cart’ button to pay using Credit card or PayPal.

A bundled package of program 28 (Stochastic divergence for charts, scanner and RadarScreen), program 30 (True Strength Index (TSI) divergence) and program 42 (RSI Divergence Indicator and Showme Study) is also available for immediate download for $149.95.

The programs were 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. Because the programs are unprotected you can open them up and see the program code as well as modify it.

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 program 28 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 $95.95 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.

Program 28 applied to 5 minute @ES chart. Click on the image to see it in more detail.

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.

Program 28 applied to a 600 tick GBPUSD chart.

Inputs

MaxArraySize( 3 ), // Maximum = 5. Determines how many previous pivots are comapred each time a new price pivot and corresponding Stochastic pivot are discovered
WhichStoch( 1 ), // Determines whether program uses oFastK, oFastD, or oSlowD to test for divergence
PriceH( H ), // Input to stochastic calculation and price used to find high pivots
PriceL( L ),  // Input to stochastic calculation and price used to find low pivots
PriceC( C ),  // Input to stochastic calculation
StochLength( 14 ),  // Input to stochastic calculation
SmoothingLength1( 3 ), // Used to slow FastK to FastD = SlowK
SmoothingLength2( 3 ), // Used to slow FastD to SlowD
SmoothingType( 1 ), // SmoothingType = 1 for Original, SmoothingType = 2 for Legacy }
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 Stochastic pivot must occur for the pivots to be considered to have occurred on the same bar
OverSold( 20 ), // Horizontal line plotted at this level
OverBought( 80 ); // Horizontal line plotted at this level

Video demonstration of program 28

This UNPROTECTED program (i.e. the TradeStation EasyLanguage indicator) is available for immediate download for $95.95 by clicking the ‘add to cart’ button to pay using Credit card or PayPal. In addition to the TradeStation ELD I have included a plain text version of the program.

You may also download a bundled package of both program 27 and program 28 for $155-. This is equivalent to more than a 30% discount when compared with buying the two programs separately. Both programs are available for immediate download by clicking the ‘add to cart’ button to pay using Credit card or PayPal.

A bundled package of program 28 (Stochastic divergence for charts, scanner and RadarScreen), program 30 (True Strength Index (TSI) divergence) and program 42 (RSI Divergence Indicator and Showme Study) is also available for immediate download for $149.95.

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

I have also created a MultiCharts edition of program 28 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 $95.95 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 of the stochastic plot produced by program 28.The red line is oFastK, the white line is oFastD and the green line is oSlowD. The green line (oSlowD) is thicker because it is the one being used by the program to calculate divergences.

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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