Divergence Tool Properties

[Tim]

Hi,

Is there any further information available regarding use of the Divergence Tool Bars, Sensitivity & Plot 2 Filter properties?

Is the Bars setting the same as a “Pivot Label”?
Is the Sensitivity setting a percent the slopes of the indicators have to be apart to trigger a divergent condition?

Thanks

Tim

[Matthew]

Hi,

The Divergence Tool uses Linear Regression in the Calculation.  The Bars property sets the number of bars used in by the Linear Regression, in this example you can see a 10 bar linear regression (green dash) manually applied to the chart matches the slope of the Divergence tools arrow which is also set to use 10 bars:

Sensitivity is to do with the line gradient.  The higher the sensitivity value, the steeper the slope of the lines needs to be to pass as a valid divergence.

[Tim]

Hi Matthew,

Thanks for the additional information.

Now I understand the Bar count.

Tim

[Author]

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