Fixed Length Divergence Indicator for TradeStation

The Fixed Length Divergence Indicator Set for TradeStation

100% Money Back Guarantee

Available for TradeStation 8.x
&
TradeStation 2000i (TS2000i)

Divergences occur when two values, typically market prices and an associated indicator, move in opposite directions. Fixed length divergences are measured between a specified number of bars. A bullish divergence occurs when prices move lower while the indicator moves higher over the same time period. And a bearish divergence occurs when prices move higher while the indicator moves lower over the same time period.

We have developed a TradeStation indicator that can be used to identify these fixed length divergences by comparing market prices against any indicator available in TradeStation easylanguage, including custom indicators you may have programmed yourself. In addition to detecting past divergences the divergence indicators can also search for, and alert you to, divergences as they develop on the current bar in real-time.

We are confident our indicators will benefit your trading which is why we offer a 100% money back guarantee so you can try out our indicators for yourself and if they are not right for you just let us know within 30 days for a full refund.

Below are a couple of examples of the fixed length divergence indicators being applied in TradeStation. The first is a chart taken of KO which shows a 10 bar fixed divergence when compared with an RSI indicator. The second is a 5 minute intraday chart of AAPL that has a fixed length divergence showme indicator which is using CCI to detect divergences.

KO chart with RSI fixed length divergence TradeStation indicator.

AAPL 5 minute intraday chart with CCI fixed length divergence showme TradeStation indicator.

You can find more chart examples further down this page.

Key Features

All the TradeStation fixed length divergence indicators have a number of different inputs allowing you to easily adjust each indicator to suit your personal requirements. Here are some of the advantages offered by this indicator:

• Adjustable price and divergence length settings for finding divergences.
• Compatible with any indicator available in TradeStation easylanguage, including custom indicators.
• Set minimum requirements for price and indicator divergences.
• Additional radarscreen information.
• Indicators also provided as functions.

In addition to the indicators which draw divergence trendlines on your charts the indicators are also provided as TradeStation showme indicators. The divergence indicators can also be applied to the new TradeStation scanner so you can scan all markets simultaneously to find markets currently diverging.

Adjustable price and divergence length settings for finding divergences.

Detecting price divergences is not restricted to the closing price. You can choose to find divergences based on the high or low, or from average prices like (high + low)/2. You can also adjust the number of bars used to calculate divergences.

Compatible with any indicator available in TradeStation easylanguage, including custom indicators.

To provide maximum flexibility when using these divergence indicators they have been designed to allow you to use any indicator available in TradeStation easylanguage while searching for divergences. You can also use these indicators to find divergences between two markets, useful for pairs trading.

Set minimum requirements for price and indicator divergences.

Each divergence indicator comes with the option to set a minimum requirement for both price and indicator values. Using these options you can filter out weak divergences, like when prices have only fractionally decreased when an indicator has risen over the same period. While technically this setup could be called a bullish divergence the minor reduction in price would deter most traders from giving much attention to this divergence. By using the minimum requirements you can automatically discard weak divergences and focus on divergences that appear stronger.

Additional radarscreen information.

When applied to a TradeStation radarscreen the fixed length divergence indicators can be used to scan and sort multiple markets in real-time. In addition to monitoring large markets the divergence indicators provides extra information about each market within a radarscreen. The components of the S&P 100 have been inserted into a radarscreen below which has a fixed length divergence indicator applied.

A real-time fixed length divergence indicator applied to a radarscreen.

As well as displaying the value of the current price being used to find divergences, which is displayed in the corresponding bullish or bearish divergence color, and the accompanying indicator, the fixed length divergence indicator provides 2 additional columns of information within a TradeStation radarscreen.

Price % - displays the current percentage change in prices from the price recorded at the start of the divergence.

Indi % - displays the current percentage change in the indicator from the indicator value recorded at the start of the divergence. You also have the option to display the actual change in the indicator value rather than the percentage change if you wish.

Indicators also provided as functions.

In addition to providing the divergence indicator in standard indicator form and showme indicator form, the indicator is also supplied as a function enabling you to incorporate the divergence function into your own indicators and trading strategies.

Continued Support and Updates for a Minimum of 12 Months

All our products come with full support so if you have any problems or require any additional information you can contact us for assistance. We also offer updates for a minimum of 12 months so if any new features are added to these indicators during this time then they can be sent to you for free.

If you have any questions about this, or any other product we offer, please contact us.

More Chart Examples of the Fixed Length Divergence Indicators

The fixed length divergence showme indicator has been applied to this chart of DELL and is using RSI to find short term divergences.

The 5 minute intraday USDJPY forex chart above shows a 10 bar fixed length divergence indicator using CCI to detect divergences.

The fixed length divergence indicators are especially useful for pairs trading. Above is an IBM-HPQ pairs trading chart using a fixed length divergence indicator to find 10 bar price divergences between IBM and HPQ. Below is another pairs trading chart with KO and PEP together.

Available for TradeStation 8.x and TradeStation 2000i (TS2000i)

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