Program 83 | Sum of stochastic, RSI, TSI, CCI, MACD, and stochastic of RSI divergences

Program83 Dailybars

Multi-oscillator divergence

_Program 83, designed for TradeStation RadarScreen and Scanner, looks for regular bullish and bearish divergences between a price and each of sixteen oscillators (see the names of the oscillators below). The number of oscillators for which there is bullish divergence for each bar is summed. The number of oscillators for which there is bearish divergence is also summed and the two sums are plotted in Radarscreen and available within TradeStation Scanner.

Some technical analysts believe that bullish and bearish divergences in an oscillator may foreshadow price reversals.

If the number of bearish divergences is above the BearThreshold input, the number’s background is changed to red. Similarly for the number of bullish divergences. If above BullThreshold the background is changed to green.

When _Program83 is used in Radarscreen, if the number of bullish divergences exceeds the user input: BullThreshold then the background color of the bullish count plot is turned green. If the number of bearish divergences exceeds the user input: BearThreshold then the background color of the bearish count plot is changed to red. If Alerts are enabled the program also generates alerts when the thresholds are exceeded.

The companion program, _Program83-tester (based on program 62) was created to help test and verify whether _Program 83 was functioning as expected during the development process. This additional program (included in the download) is not necessary to run _Program 83 but it does provide additional useful functionality. For example, _Program83-tester will indicate if a divergence with a specific oscillator has occurred. It can also be used to give a visual indication of a divergence on a chart for a specific oscillator. In Radarscreen it plots whether there is bullish and/or bearish divergence between price and an individual oscillator selected by the user.

Video demonstration of program 83

On a chart _Program83-tester plots the oscillator selected by the user in a subgraph. When a potential divergence is found a line is drawn between price pivots corresponding to pivots in the oscillator.

Each column on the left is an instance of _Program83-tester with the oscillator set to a different number. Divergences are indicated by text with green or red backgrounds.

Since price and the oscillator pivots do not necessarily occur on exactly the same bar, the program has a user input (BarTol) to determine how many bars apart the price pivot and the stochastic pivot can occur to still be considered a price/oscillator pivot pair. The price pivot can occur before the oscillator pivot, or vice versa.

The user selected oscillator is plotted and divergences are highlighted by drawing lines on the price chart

Also used in the testing process and included within _Program83, but commented out, are additional plot statements that show whether there is divergence for each of the 16 oscillators. I demonstrate the test program in the video below.

 

_Program83 also works in the TradeStation Scanner. In this image a universe of symbols was scanned to find a number of divergences above a certain number.

The program, written for TradeStation 9.5 and works with 10.0. and higher. In Radarscreen _Program83 can be used with tick, second, minute, daily, weekly and monthly bars. With the Scanner it can also be used with volume bars. The amount of processing resources required increases with the number of symbols and the smaller the bar length. This program does not work with MultiCharts.

Oscillator options

WhichOsc user input valuesOscillatorOscillator sub option
1StochasticoFastK
2StochasticoFastD
3StochasticoSlowD
4MACDMACD
5MACDMACD average
6MACDMACD difference
7RSIRSI
8RSIRSI average
9CCICCI
10CCIFast CCI
11CCISmoothed CCI
12CCISmoothed fast CCI
13TSITSI
14TSITSI average
15Stochastic of RSIStochRSI
16Stochastic of RSISmoothSRSI

Program download

Program 83 was developed for TradeStation 9.5 and 10.0.

An UNPROTECTED programs (TradeStation EasyLanguage indicators: _Program83 and _Program83-tester) are available for for immediate download for $275- by clicking the ‘add to cart’ button. Because this version is  unprotected you can open it, see the program code and modify it.

If you are a Gold Pass member make sure you enter the special coupon code to get 20% discount off these prices. Log into Gold pass and then click here to see the latest code. This code should be entered into the shopping cart to automatically deduct the discount.

_Program83 may be applied to RadarScreen, and/or the scanner. It also includes alert functionality which may be controlled by the indicator settings.

_Program83-tester may be applied to charts, RadarScreen, and/or the scanner.

Inputs

The word before the input name is the data type as follows:

  • int = integer (i.e. 0, 1, 2, 3 )
  • bool = boolean (i.e. true or false)
  • double = double(i.e. 2.34236)
  • string = string (i.e. “words”)

After the input names is a brief explanation of its use. The ‘//’ tells the program that the words are comments and they do not affect the running of the program.

The number contained within parentheses is the default value for the user input. This means that the program will run with this value unless you change it.

Input values for _Program83

int MaxArraySize( 5), // Maximum = 5. Determines how many previous pivots are compared each time a new price pivot and corresponding Stochastic pivot are discovered

int BearThreshold( 5 ), // Change color of Radarscreen cell when CountBearDiv is above this value
int BullThreshold( 5 ), // // Change color of Radarscreen cell when CountBullDiv is above this value

// Pivot inputs
int LeftStrength( 3), // Left strength of pivots
int RightStrength( 2), // Right strength of pivots
int 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

// Price inputs for all the oscillators
double OscPriceH( High), // High price input for oscillator calculations
double OscPriceL( Low), // Low price input for oscillator calculations
double OscPriceC( Close), // Closing price input for oscillator calculations

// Stochastic inputs
int StochLength( 14), // Input to stochastic calculation
int StochLength1( 3), // Used to slow FastK to FastD = SlowK
int StochLength2( 3), // Used to slow FastD to SlowD
int StochSmoothType( 1), // StochSmoothType = 1 for Original, StochSmoothType = 2 for Legacy }

// MACD inputs
double MACDPrice( Close), // Input to MACD
int MACDLength( 9), // Input to MACD
int MACDFastLength( 16), // Input to MACD
int MACDSlowLength( 26), // Input to MACD

// TSI inputs
double TSIPrice( Close), // Input to True Strength Index calculation
int TSIPeriod1( 25), // Input to True Strength Index calculation
int TSIPeriod2( 13), // Input to True Strength Index calculation
int TSIPeriod3( 5), // Input to True Strength Index calculation

// RSI inputs
double RSIPrice( Close), // Used in RSI calculation
int RSILength1( 10), // Used in RSI calculation
int RSILength2( 5), // Used in Exponential moving average of RSI calculation

// CCI inputs
int CCILength( 14), // CCI length
int CCIFastLength( 6), // Length of ‘fast’ CCI
int CCISmoothLength( 14), // Factor used to smooth CCI
int FastCCISmoothLength( 14), // Factor used to smooth fast CCI

// Stochastic of RSI
double SRSIPrice( Close), // Price input to SRSI calculation
int SRLength( 14), // Length used in the RSI calculation
int SRSISmoothLength( 5); // Smoothing length used to smooth the stochastic of the RSI

Input values for _Program83-tester

Inputs for the tester program are almost the same except for:

int WhichOsc( 1), // Determines which oscillator the program uses to test for divergence

// Trendline attributes
bool DrawTL( True),
int TLWeight( 3), // Determines the thickness oof the trendline. Valid numbers are integers between 0 and 6
int TLStyle( 0), // 0 = solid, 1 = dashed, 2 = dotted, 3 = dashed2, 4 = dashed3
int TLTransparency( 255), // Sets the alpha component (transparency) of this color structure, where 0 is fully transparent and 255 is fully opaque
string LowerColor( “Green”), // Color of lines indicating possible bullish divergence
string UpperColor( “Red”), // Color of lines indicating possible bearish divergence

// Ellipse attributes
bool DrawEllipse( True),
int EWeight( 3), // Must equal 0, 1, 2, 3, or 4
string FillColor( “Yellow”), // Fill color of the ellipse
string BorderColor( “Orange”), // Border color of the ellipse

The trendline and ellipse inputs refer to the divergence lines drawn on the chart by _Program83-tester.

Available Colors

AliceBlueDarkSlateGrayLightSalmonPaleVioletRed
AntiqueWhiteDarkTurquoiseLightSeaGreenPapayaWhip
AquaDarkVioletLightSkyBluePeachPuff
AquamarineDeepPinkLightSlateGrayPeru
AzureDeepSkyBlueLightSteelBluePink
BeigeDimGrayLightYellowPlum
BisqueDodgerBlueLimePowderBlue
BlackFirebrickLimeGreenPurple
BlanchedAlmondFloralWhiteLinenRed
BlueForestGreenMagentaRosyBrown
BlueVioletFuschiaMaroonRoyalBlue
BrownGainsboroMediumAquamarineSaddleBrown
BurlywoodGhostWhiteMediumBlueSalmon
CadetBlueGoldMediumOrchidSandyBrown
ChartreuseGoldenrodMediumPurpleSeaGreen
ChocolateGrayMediumSeaGreenSeashell
CoralGreenMediumSlateBlueSienna
CornflowerBlueGreenYellowMediumSpringGreenSilver
CornsilkHoneydewMediumTurquoiseSkyBlue
CyanHotPinkMediumVioletRedSlateBlue
DarkBlueIndianRedMidnightBlueSlateGray
DarkBrownIndigoMintCreamSnow
DarkCyanIvoryMistyRoseSpringGreen
DarkGoldenrodKhakiMoccasinSteelBlue
DarkGrayLavenderNavajoWhiteTan
DarkGreenLavenderBlushNavyTeal
DarkKhakiLawnGreenOldLaceThistle
Dark MagentaLemonChiffonOliveTomato
DarkOliveGreenLightBlueOliveDrabTurquoise
DarkOrangeLightCoralOrangeViolet
DarkOrchidLightCyanOrangeRedWheat
DarkRedLightGoldenrodYellowOrchidWhite
DarkSalmonLightGrayPaleGoldenrodWhiteSmoke
DarkSeaGreenLightGreenPaleGreenYellow
DarkSlateBlueLightPinkPaleTurquoiseYellowGreen

Summary of the oscillators

Relative strength index (RSI)

The relative strength index (RSI) was developed by J. Welles Wilder and is a momentum oscillator that measures the speed and change of price movements. It oscillates between zero and 100.

Moving average convergence divergence (MACD)

The moving average convergence divergence (MACD) returns the difference between a fast and slow exponential moving average based on the same price.

Stochastic

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.

True strength index (TSI)

The true strength index (TSI) is a momentum-based indicator, originally developed by William Blau. It is used to find the trend and overbought/oversold conditions.

Commodity channel index (CCI)

The commodity channel index (CCI) is an oscillator introduced by Donald Lambert in 1980. It is calculated as the difference between the typical price of a commodity and its simple moving average, divided by the mean absolute deviation of the typical price. In TradeStation the index is scaled by an inverse factor of 0.015.

Stochastic of RSI

The stochastic of the RSI is calculated using the following formula:

TrueStrengthIndex = 100 * _Divide( XAverage( XAverage( Price – Price[1], TSIPeriod1 ), TSIPeriod2 ), XAverage( XAverage( AbsValue( Price – Price[1] ), TSIPeriod1 ), TSIPeriod2 ) );

XAvgTSI = XAverage( TrueStrengthIndex, TSIPeriod3 );

_Divide is a function that divides the first input by the second, while checking for divide by zero errors.

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