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The price is for the package.
This product is part of the: MACD Divergence Indicator all-in-one package for Thinkorswim
How to use:
The purpose of divergence indicator is to point when price trend are moving into opposite direction.
First, we need to locate the recent High1 and its MACD1 value within the given range(length1).
Secondly, we find the previous High2 and its MACD2 value within the given range(length2).
Then we compare the ratio of these 2 Highs and MACD values to determine if they meet the percentage you set.
For example, if you set "percent=3", then it will check if High1 is greater than High2 by 3%. If you set "MACD percent=5" then it will check if MACD1 is less than MACD2 by 5%.
If both percent conditions are met, there will be a red arrow pointing downward.
The indicator will find the recent Low1 and its MACD1 value within the given range(length1).
And then it will find the previous Low2 and its MACD2 value within the given range(length2).
If you set "percent=1", then it will check if Low1 is less than Low2 by 1%. If you set "MACD percent=5" then it will check if MACD1 is greater than MACD2 by 5%.
If both percent conditions are met, there will be a green arrow pointing upward.
Please note: in order to plot this indicator on both price chart and lower chart, you need to load it in two places. And set MACD_mode to "Upper" in Price chart and MACD_mode to "lower" in Lower chart. As shown in the following picture.
If you want the same signals on both charts, all parameters have to be consistent on both sides.
This indicator works in any time period and applicable for all securities(Stocks, Futures, Forex, Options, ETF, etc.).
When you use this indicator in a minute chart, it's better to set "percent" less than 1, otherwise, lots of signals will be filtered.
If you want to add any feature to this indicator, please send us a Customization request.
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