MACD Divergence Indicator for ThinkorSwim

[magnatron]

I am writing a simple divergence indicator with following logic:

1. Search for highest high in price in last 3 months (this can be any period)
2. Compare with current price and ensure current price is equal or above the highest high
3. Compare MACD between the two points and ensure MACD value for current bar is less than the highest bar.

Coded as below:

input length = 30;

input fastLength = 12;
input slowLength = 26;
input MACDLength = 9;

def highestHigh = highest(high, length);
def MACD = MACD(fastLength, slowLength, MACDLength).Diff;
def MACDHist = MACD(fastLength, slowLength, MACDLength).Hist;

plot Scan = high > highestHigh and MACD - MACD[1] < 0 and MACDHist - MACDHist[1] < 0;

Issue I am facing is how to get the MACD value for the highest high price bar? I don't think the current code logic is right. MACD[1] will give value for the 1 bar ago and not the highest high price bar.

Appreciate all the help. Thanks

 

[mashume]

I think the best way to go about this is to do something akin to this:

def highestHigh = highest(high, length);
def local_MACDDiff = MACD(fastLength, slowLength, MACDLength).Diff;
def local_MACDHist = MACD(fastLength, slowLength, MACDLength).Hist;
def stored_macd_diff = if high = highestHigh then local_MACD_diff[-1] else stored_macd_diff[1];
plot scan = if high == highestHigh and local_MACD_diff < stored_macd_diff[1] then 1 else double.nan;

Some notes
1. Don't use study names for your local variables. it just gets confusing. I defined local_macd rather than using the macd name... keeps my brain focused on which is which.
2. the value of stored_macd is updated only when the high is the same as the highestHigh -- that's how we set and reset the value
3. I used a future value of local_macd_diff when setting the stored_macd_diff. I don't know if this will do what is needed or not. I'm trying to ensure that, even when the value is checked later (local_MACD_diff < stored_macd_diff[1]) it is checked against the value for the correct bar. We have to check against a past value of stored_macd_diff since if high == highestHigh we will have reset stored_macd_diff to the new (current bar) value.

But I haven't had enough coffee to test this in ToS. It's all just typed here.

best of luck,
mashume

 

[magnatron]

Thanks mashume. I will test it out. Truly appreciate the help. This community rocks!!!

 

[magnatron]

@BenTen Thanks for the script. Unfortunately I am unable to figure out how to use it as a scanner. Basically I want to scan for daily/weekly divergence on equities over a period of last 30/60/90 days. Should I save the script as a study and create a scan using it for various time frames? But how do specify the time frame? Thanks

 

[BenTen]

@BenTen Thanks for the script. Unfortunately I am unable to figure out how to use it as a scanner. Basically I want to scan for daily/weekly divergence on equities over a period of last 30/60/90 days. Should I save the script as a study and create a scan using it for various time frames? But how do specify the time frame? Thanks

You can specify the timeframe via the Scan tab.

 

[CHETRON]

multi time frame version.....
https://usethinkscript.com/threads/...divergence-for-thinkorswim.12091/#post-121568
the above link is not correct,,,,

# MACDDIVERGENCE_R1V1
# R1V1   2011.05.14:22:15 - TONY LIPTON
#        monitors macd divergenge for entry

#        MAJOR CODE CONTRIBUTION by KumoBob aka Bob Campbell
#        http://fibonacci-financial.blogspot.com/

INPUT VFL = 12;
INPUT VSL = 26;
input vtp = aggregationPeriod.DAY;
input MACDLength = 9;
input averageType = AverageType.EXPONENTIAL;

DEF Value = MovingAverage(averageType, close(period = vtp), VFL) - MovingAverage(averageType, close(period = vtp), VsL);
DEF Avg = MovingAverage(averageType, Value, MACDLength);

DEF Diff = Value - Avg;

DEF VLB = (VFL + VSL);#/2;

DEF vh34 = highest(diff,VLB);
DEF vl34 = lowest(diff,VLB);


input ChartBubblesON = NO;
input LinesON = Yes;

rec top;
rec bot;

top = if
diff == VH34
then High(period = vtp)  else top[1];
bot = if
diff == VL34
then Low(period = vtp)  else bot[1];


plot topline = if !LinesOn then Double.NaN else top;
topline.SetLineWeight(1);
topline.assignValueColor(if ((top < HIGH(period = vtp))) then COLOr.PLUM  else color.DARK_GREEN);
topline.SetPaintingStrategy(PaintingStrategy.points);
plot bottomline =  if !LinesOn then Double.NaN else bot;
bottomline.SetLineWeight(1);
bottomline.assignValueColor(if ((LOW(period = vtp) < bot)) then color.BLUE else color.DARK_RED);
bottomline.SetPaintingStrategy(PaintingStrategy.dashes);
# _____________________________________________________________
# Thinkscript is the property of ThinkorSwim and TDAmeritrade
# Sections of this script may have been copied or modified from
# one or more Thinkscript studies in part or in their entirety.
# _____________________________________________________________