Lane's Stochastic Divergence Indicator for ThinkorSwim

BenTen

BenTen

Administrative
Staff
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Here is one of the momentum oscillators for ThinkorSwim called Lane Divergence. It shows bullish and bearish signals on the lower study of your chart. The overbought area is set to 80 while the oversold area is set to 20, similar to RSI parameters.

The indicator also comes with an alert system.



thinkScript Code
Rich (BB code):
declare lower;

input over_bought = 80.0;
input over_sold = 20.0;
input percentDLength = 3;
input percentKLength = 14;
input AudibleAlert = yes;

def min_low = Lowest(low, percentKLength);
def max_high = Highest(high, percentKLength);
def rel_diff = close - (max_high + min_low) / 2;
def diff = max_high - min_low;
def avgrel = Average(Average(rel_diff, percentDLength), percentDLength);
def avgdiff = Average(Average(diff, percentDLength), percentDLength);
def SMIData = (avgrel / (avgdiff / 2) + 1) * 50;

def isLow = If (SMIData < SMIData[-1] and SMIData < SMIData[1], 1, 0);
def isHigh =   If (SMIData > SMIData[-1] and SMIData > SMIData[1], 1, 0);

rec prevLowSMI = CompoundValue(1, If(isLow[1], SMIData[1], prevLowSMI[1]), 

0);
rec prevHighSMI = CompoundValue(1, If(isHigh[1], SMIData[1], prevHighSMI

[1]), 0);

rec prevLow =  CompoundValue(1, If(isLow[1], low, prevLow[1]), low);
rec prevHigh =  CompoundValue(1, If(isHigh[1], high, prevHigh[1]), high);

def positiveDivergenceReg = If (SMIData > prevLowSMI and low < prevLow, 1, 

0);
def positiveDivergenceHid = If (SMIData < prevLowSMI and low > prevLow, 1, 

0);

plot posDiv = If(isLow and (positiveDivergenceReg or 

positiveDivergenceHid), SMIData, Double.NaN);
posDiv.AssignValueColor(if positiveDivergenceReg then Color.GREEN else 

Color.white);
posDiv.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
posDiv.SetLineWeight(2);

def negativeDivergenceReg =  If (SMIData < prevHighSMI and high > prevHigh, 

1, 0);
def negativeDivergenceHid = If (SMIData > prevHighSMI and high < prevHigh, 

1, 0);

plot negDiv = If(isHigh and ( negativeDivergenceReg or 

negativeDivergenceHid), SMIData, Double.NaN);
negDiv.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
negDiv.AssignValueColor(if negativeDivergenceReg then Color.RED else 

Color.white);
negDiv.SetLineWeight(2);

plot AvgSMI = Average(SMIData, percentDLength);
AvgSMI.SetDefaultColor(Color.GRAY);

plot overbought = over_bought;
overbought.SetDefaultColor(Color.WHITE);
overbought.SetStyle(Curve.SHORT_DASH);

plot oversold = over_sold;
oversold.SetDefaultColor(Color.WHITE);
oversold.SetStyle(Curve.SHORT_DASH);

plot SMI = SMIData;
SMI.AssignValueColor(if SMI > SMI[1] then Color.GREEN else Color.RED);
SMI.SetLineWeight(2);

# Sound alerts
Alert(AudibleAlert and positiveDivergenceReg, "Time TO Buy", Alert.BAR, 
Sound.Ring);
Alert(AudibleAlert and negativeDivergenceReg, "Time TO Sell", Alert.BAR, 
Sound.Ring);
Shareable Link
http://tos.mx/Wcmk2L

 
Last edited:

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