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Show divergence in its on plot, without MACD or other momentum oscillators

Personal Finance & Money Asked on February 18, 2021

I would like to identify divergence, but not through comparing price action with an oscillator, e.g. the MACD or other momentum oscillators (as normally done), but in its own plot. How to do this? Any existing functions which does this?

One Answer

Trendline comparison is a visual comparison.

An indicator for testing for divergence would be quite simple because it's a merely comparison of two lines with opposing slopes offering the result that you seek, aka convergence or divergence.

It's quite easy to determine the overall trendline for a set of data of any length. However, within that set there there will be many short term trendlines as well as some intermediate ones, of varying length and direction. It would be extremely difficult and would require some serious programming to write an algorithm that analyzes all of these possibilities.

Does one exist? Is it available out there? I have no clue.

Answered by Bob Baerker on February 18, 2021

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