Divergences: The following examples
are intended to familiarize the User with the concept of divergence; for
this recognition exercise, Linear Regression lines are used instead of
Trendlines; Trendlines are currently available in the Top window ONLY.
Users are encouraged to substitute their own values for each Divergence
PCF and the accompanying chart settings. (10/29/99 ejr39) Divergence Balance of Power (BOP) DIVERGENCE: Positive Divergence Negative Divergence Money Stream (CSM) DIVERGENCE: Positive Divergence Negative Divergence Moving Average Convergence DIVERGENCE (MACD):
"A divergence occurs when the trend of a security's
price doesn't agree with the trend of an indicator."
http://www.equis.com/free/taaz/intindicators.html#divergences
For this example:
Chart Editing Indicator Tab# settings
Price - Line Chart; Drawing Color Grey
. . . . Linear Regression - 10 bar period
Balance of Power - uncheck Visible
. . . . Linear Regression - 10 bar period
. . .BOP Linear Regression Line trending upward from left
to right
. . .Price Linear Regression line trending downward from left to right
BOP>=(MAX(BOP,10))AND(C<=MINC10)
. . .BOP Linear Regression Line trending downward from left
to right
. . .Price Linear Regression line trending upward from left to right
BOP<=(MIN(BOP,10))AND(C>=MAXC10)
For this example:
Chart Editing Indicator Tab# settings
Price - Line Chart; Drawing Color Grey
. . .Linear Regression - 10 bar period
Money Stream - uncheck Apply Regressions to Indicator and Price Graph;
. . . . . . . . . . . . - uncheck Visible
. . .Linear Regression - 10 bar period
CSM NOT available as a Personal Criteria Formula Function in TC2000 version
4.2.0062.
. . .Money Stream Linear Regression Line trending upward
from left to right
. . .Price Linear Regression line trending downward from left to right
. . .Money Stream Linear Regression Line trending downward
from left to right
. . .Price Linear Regression line trending upward from left to right