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Oscillators > SlowK Divergence

Article/Author: Origin: www.bayou.com/~smcg/tscode2.htm. E-mail: trade1@bayou.com

Download: Bayou1.ela

File Includes:

Indicator - SlowK Divergence
PaintBar - SlowK_Divergence

Category: Indicators > Oscillators

Description:

Look for a divergence of SlowK. Divergence is an indication that an end to the current trend may be near occurs when the indicator diverges from the security. A bearish divergence occurs when the indicator is making new lows while prices fail to reach new lows. A bullish divergence occurs when the indicator is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought/oversold levels.

Usage:

Bullish divergence is if the current "slowk_var" is less than 20. The code defines the shape of the slowk curve first. If the slowk curve's shape meets the criteria for a bullish divergence, the code then will check for a bullish divergence.




Inputs:

SlowKLength - period to calculate SlowK
SlowKAverage - period to average SlowK

EasyLanguage Code:
INPUTS: SLOWKLENGTH(9),SLOWKAVERAGE(3); 

VARS: SLOWK_VAR(0);
{CREATE THE VARIABLE SLOWK_VAR. SLOWK_VAR WILL STORE THE AVERAGE OF SLOWK_VAR.
THE PERIOD TO AVERAGE SLOWK_VAR IS DEFINED BY THE INPUT SLOWKAVERAGE.}
SLOWK_VAR=AVERAGE(SLOWK(SLOWKLENGTH),SLOWKAVERAGE);

PLOT1 (SLOWK_VAR,"SLOWK");