diverge Function

[wisestocktrader]

Hi Overload

Could you tell me how this function is calculated the docs are very vague. Does it calculate the rate of change for a certain number of periods for both values and check that one is positive and the other negative and that both are above a certain threshold like 5 percent?

[Overload]

The help for the diverge() formula can be found in the StrataSearch help, or online here:

http://www.stratasearch.com/help/HELP_DIVERGE.html

The formula is really not very complicated. The first test is whether either Parameter 1 or Parameter 2 has independently moved the specified Percent over the specified number of Days. If not, then the diverge() formula returns 0. Likewise, if both values have moved in the same direction (i.e. both have moved up or both have moved down), then the diverge() formula also returns 0.

If at least one of the values has moved the specified Percent, and the values have moved in opposite directions, then the diverge() formula will return a value. If Parameter 1 moved up while Parameter 2 moved down, then diverge() will return 1. Otherwise it will return -1.

Pete

[wisestocktrader]

Thank you that was an excellent explanation. You should probably add it to the docs for those like me.