The V-Trade, Part 6: Technical Analysis —Divergence Indicators

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AIQ EDS code based on Sylvain Vervoort’s August 2018 S&C article, “The V-Trade, Part 6: Technical Analysis—Divergence Indicators,”
This sixth part of a multipart series continues with a look at the stochastic RSI indicator (SRSI) to identify divergences… is available below

The code is shown here:

!The V-Trade Part 6 !Author: Sylvain Vervoort, TASC Feb 2019 
!Coded by: Richard Denning 
!www.TradersEdgeSystems.com 

!INPUTS: 
stochLen is 5. 
stochSum is 8. 
rsiW is 21. 

!RSI WILDER: 
U  is [close]-val([close],1). 
D  is val([close],1)-[close]. 
rsiLen is 2 * rsiW - 1. 
AvgU  is ExpAvg(iff(U>0,U,0),rsiLen). 
AvgD  is ExpAvg(iff(D>=0,D,0),rsiLen). 
rsi  is 100-(100/(1+(AvgU/AvgD))). 
hiRSI  is highresult(rsi,stochLen). 
lowRSI   is lowresult(rsi,stochLen). 
RSIlow  is rsi - lowRSI. 
RSIhilow  is hiRSI - lowRSI. ema1   is simpleavg(RSIlow,stochSum). 
ema2  is simpleavg(RSIhilow,stochSum). 
sveStochRSI is (ema1/(ema2 + 0.1))*100.

Figure 7 demonstrates the indicator on a chart of IBM.

Sample Chart

FIGURE 7: AIQ. The sveStochRSI is shown on a chart of IBM.

—Richard Denning
info@TradersEdgeSystems.com
for AIQ Systems