MACD divergence semi-automatic scanner for TradeStation

Teacher

Chairman

About Course

Semi-automatic MACD divergence scanner for TradeStation

Two options: buy separately or as part of an enhanced disc for TS

Dr. Alexander Elder and John Bruns (author)

Divergences are disagreements between price patterns and indicators. They are among the most powerful signals in technical analysis. Dr. Elder addressed divergences in all of his books, and recently dedicated a complete e-book to them, with dozens of pictures showing how to identify and Exchange divergences.

Since real divergences rarely occur, it makes sense to scan many commercial vehicles when looking for these important patterns.

While writing his e-book on divergence, Dr. Elder came up with this concept: instead of trying to create an automatic scanner, why not build a semi-automatic scanner that indicates when a divergence can develop? Use the power of digital processing to identify market conditions where divergences are likely to occur, and then switch to a visual scan of those charts. We created this program to alert you when a divergence is developing, so you can start monitoring that graph.

To add the MACD semi-automatic divergence scanner to a TradeStation chart, simply right-click a chart and choose ‘Insert analysis technique’. Then select ‘major bullish divergence’ and / or ‘major bearish divergence’.

If you have the radar screen enabled in TradeStation, you can use the Showme indicators ‘Elder Bullish Divergence’ and ‘Elder Bearish Divergence’ to find values that are currently creating divergences. This is very useful for scanning large groups, such as Nasdaq 100 or S & P 500. The scanner column displays a value only if there is a potential or actual divergence.