Easylanguage Dictionary Full Cycle Requirement

The final index measures the deviation from normal, which indicates major changes in market trend.

Can be used in all markets for scalping, day trading, swing trading or position trading.

Five separate divergence indicators that provide an alert and pop-up text whenever a divergent condition exists between price and the selected indicator.

The Alchemy Divergence Indicator Package consists of a CCI divergence, CCI hook divergence, RSI divergence, RSI hook divergence, Stochastics divergence, Stochastics hook divergence, TICK divergence, TICK hook divergence, MACD divergence and MACD hook divergence indicator.

We additionally offer a custom divergence indicator that allows you to paste any indicator from the EasyLanguage dictionary into a user-defined input to detect divergence.

Besides regular divergence, our divergence indicators also have the option to detect reverse divergence.

These indicators feature an OverboughtOversold input that allows the user to specify an overbought and oversold zone in which to look for divergence.

Easylanguage Dictionary Full Cycle Requirement

Additionally, we added an optional cycle filter into our divergence indicators that gives the user the option of specifying a full cycle requirement for each divergence occurrence.

This means that with the Alchemy Divergence Indicator you will receive a divergence indication much quicker than with the standard TradeStation divergence functions.

This allows you to get a step on making top or bottom formation decisions and allows you to enter your trading orders much sooner.

What is divergence Divergence occurs when the indicator (RSI, MACD, Stochastics or Tick) is giving you an indication as to direction that is different from the direction that price is moving.

For example, price is heading higher and the indicator is heading lower.

Divergence occurs when the higher price is not confirmed by a higher indicator reading.

Types of divergence: Bullish Divergence - occurs when price is making a lower low and the indicator is making a higher low, failing to move to a new low with price.

This is a great sign of a potential bottom and many traders look deeper for confirmation of a buy signal when bullish divergence occurs.

Often times, you will see bullish divergence correspond with the low of the day.

Bearish Divergence occurs when price is making a higher high and the indicator is making a lower high, failing to move to a new high with price.

This is a great sign of a potential top and many traders look deeper for confirmation of a sell signal when bearish divergence occurs.

Often times, you will see bearish divergence correspond with the high of the day.

Bullish and bearish divergence is a great tool for the intra-day trader.

However, spotting actual divergence with price and the indicator can be a very tedious and inconsistent task for most traders.

With the Alchemy Divergence Indicators all the difficult and tedious measuring are done for you in a very visual and consistent manner.

This allows the trader to concentrate on possible trade set-ups and trade confirmation signals.

A Detailed Explanation of the Indicators Used for Alchemy Divergence: Image 1: CCI Divergence Commodity Channel Index CCI The Commodity Channel Index (CCI), which is best used with contracts that display cyclical or seasonal characteristics, is formulated to detect the beginning and ending of these cycles by incorporating a moving average together with a divisor, which reflects both possible and actual trading ranges.