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Precision Trading Systems is a registered NinjaTrader vendor partner.

Precision Divergence Finder for NinjaTrader 7 and 8 conceptualized by Precision Trading systems

 

The power of Demand index is put to its best use when measuring divergences between itself and the price data series.

 

When we see a weakening of prices that are making new lows and the Demand Index is not making a new low this known as a bullish divergence

 

The Precision Divergence finder harnesses the true power of Demand Index and removes all the hard work of visually measuring these divergences.

 

  • See when the professional traders are quietly trying to buy stock without showing their hand

  • Measures a multitude of divergences and only flags up when significance is evident.

  • Observes 20 different look back periods of Demand index simultaneously at blinding speed

  • Calculations over a whopping 200 bar range of prices

  • Computes a consensus of how many divergences are occurring on any given bar.

  • Gives you a simple at a glance reading between 0 - 20 showing the strength of signal FAST

  • Can be used in signals and systems

  • Adjustable sensitivity settings

  • Adjustable core Demand Index Lengths

This indicator does a lot of hard work behind the scenes.

  • It seeks out divergences on 20 look back periods of Demand Index indicators simultaneously

  • Users can adjust the period of demand index length for total flexibility.

  • The reading output will be between 0 ( no divergences ) to 20 maximum number of divergences.

  • The "diff" input which is set to 3 by default looks for a 3 point difference in the demand index over each look back period

  • Discerning users can set this value to a much higher value and this will make the indicator only show up the very strongest readings.

  • Diff settings can be made below 1 to show up every little instance of a divergence that occurs.

Buy Precision Divergence Finder for NinjaTrader 7 and 8         $225 for a 10 yr license, or you can have a 1 month trial for $65

 

 

 

Precision Divergence Finder for NinjaTrader 7 and 8 shown below on recent data (Nasdaq  Futures)

This indicator measures the number of divergences found ( out of a maximum of 20 ) you can see the reading above shows 6 on 11/3 which indicates that six divergences occurred and on 11/7 there was one divergence.

 

The shot above of the E-mini Dow futures shows two single divergences side by side and another single divergence in the middle of the screen.

Buy Precision Divergence Finder for NinjaTrader 7 and 8         $225 for a 10 yr license, or you get a 1 month trial for $65

 

 

Above we can see two divergences occured simultaneously on USD/JPY which heralded a large intra-day rise.

                                   Ideally this indicator is best as an entry signal that is confirmed by something else.

Exits are best done with a trailing stop which has a logical trend following exit.

 

Precision Divergence Finder can often help you pinpoint bottoms with amazingly high accuracy

Above we can see a single divergence occurred on BBBY which clearly indicated a new low that was not confirmed by Demand Index.

Above we can see a single divergence occurred on BBBY on 11/29  which is confirmed by one of the more reliable candlestick signals. Note the huge up gap in the data, know as a rising window in Japanese candlestick terminology. The quantification logic of a rising window is very simply that the upgap was caused by a very large pre market buy order. He could not get as much stock as he wanted, thus the buyer returns at the 59.25 level to pick up more stock. The is beautifully confirmed by the divergence seen as strength 3 on the Precision Divergence finder, making it a high probability entry signal.

Which markets can Precision Divergence Finder be used on?

  • Futures            
  • Stocks               
  • Bonds                
  • Forex            
  • Forex Futures   

Which markets cannot be used with Precision Divergence Finder?

  • Indices without volume
  • Any market with no volume

Buy Precision Divergence Finder for NinjaTrader 7 and 8                  $225 for a 10 yr license, or you get a 1 month trial for $65

 

Precision Divergence finder is one of the multitude of indicators which are comprised within the Pi-Osc below

 
                                             FAQ

Does the Precision Divergence Finder work on futures and stocks in real time?   

Yes, the Precision Divergence finder works in any time frame and on any chart type, tick, minute, renko, daily or weekly etc.

Although it can give some good signals on shorter time frame data, generally speaking intra-day signals are always less reliable than signal generated in longer time frame samples.

For example, you can see a hundred double tops and head and shoulders in a tick chart of a busy market every single day, but these are very insignificant in comparison to a head and shoulders occurring in a daily or weekly chart.

As with all signals in technical analysis the rarer the signal, the more significant it becomes.

 

If I don't like the product can I get a refund?

Precision trading systems has a 30 day money back guarantee on all products.

 See conditions below.

 Refunds will be given for the following reasons.

  1. If a bug - error is found that cannot be fixed within 7 working days of a report being sent to Precision trading systems. (The 7 working day limit, does not apply if we are on vacation )

 2. If you don't report any problem within 30 days of purchase you cannot claim your refund.

 3. I have been using this for many years without any problems. So be please assured its reliable and accurate.

Please note:

Screenshots need to be provided for initial response and by remote pc access for the proof if it is required. 

And a thorough description of what happened when you experience the error.

 

Does the Precision Divergence Finder work on tick volume or only actual trade volume? 

Yes, the Precision Divergence finder works on both tick volume and trade volume, but frankly speaking I would not trust it when used on tick volume as the whole purpose of DI, is to reveal which direction big volume trades are place in.

E.G.

 If someone bought 1,000,000 shares in a stock, it would only show as 1 tick up on tick volume analysis, but on actual volume data, you will likely see a large rise in the value of DI, which in turn would be intercepted by the algorithms contained in the Precision Divergence Finder causing it to give a reading if a divergence was evident.

 

Does the Precision Divergence Finder work on static end of day data? ( Not real-time )

Yes, static AND real-time data it works. Please see the chart examples above. ( I will post some more real-time examples soon)

 

Do you provide a Precision Divergence Finder that shows a bearish divergence for sell signals?   

No, the Precision Divergence finder only issues buy signals when there is a bullish divergence. The explanation is rather complex, but here goes...

I did code up the bearish equivalent of this product, and noted the behaviour of bullish and bearish divergences were very different, while it may seem to be a symmetrical equation it actually is not. Market psychology during peaks and troughs are very un-symmetrical in their nature and market tops are the result of the polar opposite emotions of fear - greed - euphoria.

 It is often said that tops sneak up on us without fair warning, and this is very true. Market bottoms generally display much lower levels of volatility and this is due to investor expectations being much more conservative with less hope of success. (The attitude would be, XYZ stock is low at the moment, maybe I will start quietly buying a few and take my chances, as opposed to the euphoric excitable view  of ...wow this stock is flying up, I must get these before I miss out on the huge profit chance) Frequently the 2nd scenario is followed rapidly by "buyers remorse" and "feeling stupid" and hence causes a wave of panic selling.

Furthermore, the Demand Index code while being an utterly superb piece of work by Mr James Sibbett, it just does not lend itself to handling panic selling and high volatility situations, I have spent many long hours pouring though the code for DI, as well as the code for my Divergence Indicator and have not found a way of altering it to provide good sell signals without jeopardising the excellent qualities of its buy signals.

Unfortunately, the sell signal ( bearish divergences ) of demand index are not as effective, and I never used it in my trading as it gives many fake signals during up trends which renders it useless. Sure there will be big divergences at most tops, but these cant be given validity because of the plethora of fake signals on the way up to the tops.

I never sell anything on my site which does not deliver good trading results.

Sorry for the long answer, but it had to be explained.

 

 

List of other paid and free products from Precision Trading Systems.

 

 

 

Precision Divergence Finder for NinjaTrader 7 and 8

Price $225  (Pay-Pal)  10 year license

Price $65  (Pay-Pal)  1 month trial license

Stocks, Futures, Bonds, Forex, Real-time and Static data  

 

Buy Precision Divergence Finder for NinjaTrader 7 and 8

 

Author: Roger Medcalf of Precision Trading Systems. (Protected code) Making life simple for traders.

 

 

 

 

 

 

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