AFL Library

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Details:

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Description:

Here is an indicator which calculates divergencies between the price and RSI.

You can use another strenght/momentum indicator simple by changing one line of code.

Remember to tune the 'period' and 'numChg'

Indicator gives you the buy/sell signal when you see green/red vertical line on the panel.

Formula:

// ********************************************
// INDICATOR	:DIVERGENCE
// DATE		:07-30-04
// PROGRAMMER	:M.Lauronen
// COPYRIGHTS	:Public Domain
// ********************************************

// --------------------------------------------
// Recommended AmiBroker indicator settings:
//		Level 0
//		Percent
//		Middle
//		Scaling: Custom 0 - 100
// --------------------------------------------

// Adjust the following parameters to suit your needs
period	= 5;
numChg = 0.001;

// --------------------------------------------
// Divergence for LONG
// --------------------------------------------

trendMom	= RSI(period);
trendZig	= Zig(L, numChg);

f	= trendZig > Ref(trendZig, -1) AND Ref(trendZig, -1) < Ref(trendZig, -2);

p1	= ValueWhen(f, Ref(trendZig, -1), 1);
p2	= ValueWhen(f, Ref(trendZig, -1), 2);
r1	= ValueWhen(f, Ref(trendMom,-1), 1);
r2 	= ValueWhen(f, Ref(trendMom,-1), 2);

f	= r1 > r2 AND p1 < p2;

sig	= f AND NOT Ref(f, -1) AND trendMom > Ref(trendMom, -1); 

_N(str = "(" + period + ")");
Plot(trendMom, "RSI" + str, colorWhite);
Plot(sig * 100, "Sig", colorGreen, styleHistogram + styleThick +
styleNoLabel);

// --------------------------------------------
// Divergence for SHORT
// --------------------------------------------

trendZig2	= Zig(H, numChg);

f	= trendZig2 < Ref(trendZig2, -1) AND Ref(trendZig2, -1) > Ref(trendZig2,
-2);

p1	= ValueWhen(f, Ref(trendZig2, -1), 1);
p2	= ValueWhen(f, Ref(trendZig2, -1), 2);
r1	= ValueWhen(f, Ref(trendMom,-1), 1);
r2 	= ValueWhen(f, Ref(trendMom,-1), 2);

f	= r1 < r2 AND p1 > p2;

sig	= f AND NOT Ref(f, -1) AND trendMom < Ref(trendMom, -1); 

_N(str = "(" + period + ")");
Plot(sig * 100, "Sig", colorRed, styleHistogram + styleThick + styleNoLabel);

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