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MACD-H divergence scan

Hi

How do I scan for MACD-H divergence with the following conditions:

MACD-H rises from below zero and then falls again below zero then rises (higher 2nd low)

while price continues to fall to 2nd lower trough ....

Is a scan possible for this ? Thanks.

Comments

  • markdmarkd ✭✭✭
    edited February 10
    Basically, that is pattern recognition, which is very hard to scan for (successfully) because the market rarely repeats a behavior in EXACTLY the same way. So, when you write the scan, it has to be very long and complicated to account for every possibility, or it has to be more general, which get lots of hits that don't fit the sequence you are looking for.

    For a simple divergence scan, you might start with, say, a new 20 day low

    [close = min(20, close)]

    and a Hist that is NOT a 20 day low

    [MACD Hist(12,26,9) > min(20, MACD Hist(12,26,9))]

    and go from there. You could mess with the 20 parameter, maybe specify that MACD Hist is less than 0, etc.

  • Thanks, markd. I will get started and check back if questions.
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