Please visit the product guide above if you require this
Tradestation drawing tool for a different trading platform.
Video
below shows how Precision Divergence Finder does its task on speeded up
data
This indicator for Tradestation saves you time when searching for divergences in Demand Index in a fully configurable format
Indroduction and concepts of Precision
Divergence Finder for Tradestation
The Precision Divergence
Finder Indicator was designed by Roger Medcalf to accurately
identify divergences between Demand Index and price.
These
divergences ALWAYS occur at a new low price. It is therefore advised
to wait for some strength to appear before buying these dips.
Such a method is defined in the combos page where more than one
product is used to created entry and exit signals.
When a
divergence is pure and simple, huge rewards are possible plus the
added satisfaction of buying very near the low of the week
On
the other hand when one of these signals fail, it often heralds a
continuation of a sharp drop in price. Using a stop loss therefore
is ESSENTIAL.
The Precision Divergence Finder for
Tradestation is a very simple to use indicator, which can benefit a
expert and a beginner. Video examples below show how it plots
Special features of the
Precision Divergence Finder Indicator Tradestation
( See for yourself below )
The absolute lowest low in Cocoa
futures shows a buy signal and the only signal in three years of
daily data, still moving up two years later.
The Precision Divergence Finder
Indicator tells you in real time if Demand Index is not making a new
low when the price is making a new low.
What does this mean?
Why is it so significant?
This is a good indication of
institutional patient accumulation of the market while the public
continues selling and panicking.
It really is that simple.
The examples below show how to trade these events.
Why is
Demand Index used to measure divergences? Simply put this wizard of
an indicator does a better job than most to find professional buying
just as its creator Mr James Sibbet
intended it to do. It was
always a favourite of mine as it is like having an inside track as
to what is going on.
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license prices for Precision Divergence Finder
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 measuring
these divergences.
Please note this product is also available
for NinjaTrader8, MultiCharts and MetaTrader 4
Why this indicator gives you so
much power
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
Chart below Etherium USD
The indicator does a lot of hard work to identify the divergences
that occurs in cryptocurrencies during the selling panic.
The shot below of Ripple finds some nice bottoming divergences
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license prices for Precision Divergence Finder for Tradestation
Some
FAQ's
Does the Precision Divergence Finder work on futures and
stocks in real time?
Yes, the Precision Divergence
finder works in any time frame, but best on daily or weekly price
sets.
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. Nobody has
ever reported a bug in this product, so you won't ask for a refund.
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.
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, and this was the data type used in the chart examples above. (
I will post some real-time examples soon)
You must have
volume with the data, or you will not get any signals.
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license prices for Precision Divergence Finder for Tradestation
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Precision Trading Systems was founded in 2006
providing high quality indicators and trading systems for a wide range of
markets and levels of experience. Supporting NinjaTrader, Tradestation and
MultiCharts.
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