Stochastic Oscillator Divergence Indicator For ThinkOrSwim

Koolkth1

New member
Many years ago I developed a Stochastic Divergence Indicator, (code below and photos below), works best on 5 min time frame and up. I made this from a lot of cutting and pasting/trial and error. Basically when a Divergence is detected a the indicator produces a spike in the lower study section. The photos show where these divergences are, please note, I drews these lines, not the indicator.
Here's the photo of how it works:

Stochastic Divergence Code:
Ruby:
input over_bought = 80;
input over_sold = 20;
input KPeriod = 14;
input DPeriod = 3;
input priceH = high;
input priceL = low;
input priceC = close;
input averageType = AverageType.SIMPLE;
input showBreakoutSignals = {default "No", "On FullK", "On FullD", "On FullK & FullD"};

def lowest_k = Lowest(priceL, KPeriod);
def c1 = pricel - lowest_k;
def c2 = Highest(priceH, KPeriod) - lowest_k;
def FastK = if c2 != 0 then c1 / c2 * 100 else 0;

def FullK = MovingAverage(averageType, FastK);
def FullD = MovingAverage(averageType, FullK, DPeriod);

def upK = FullK crosses above Over_sold;
def upD = FullD crosses above Over_sold;
def downK = FullK crosses below Over_bought;
def downD = FullD crosses below Over_bought;

plot data = (upd)or (upk);
 
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Would this work well with a macd divergence indicator? It would be interesting to compare the 2
Members have stated in this thread
https://usethinkscript.com/threads/macd-divergence-indicator-for-thinkorswim.35
and this thread
https://usethinkscript.com/threads/rsi-divergence-indicator-with-scanner-for-thinkorswim.136/

That there is not a reliable means for signaling divergences.
Read more in the above threads and here:
https://www.investopedia.com/articl...115/why-macd-divergence-unreliable-signal.asp
 

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