Hi
A quick question can the Optuma Divergence Index be used to compare 2 or more different stocks. Or is it an absolute number which cant be compared relatively to other stocks
cheers
mandeep
Hi
A quick question can the Optuma Divergence Index be used to compare 2 or more different stocks. Or is it an absolute number which cant be compared relatively to other stocks
cheers
mandeep
Hi Mandeep,
This tool is comparing moving averages of the same stock. To compare 2 stocks overlay them on a chart and use the Divergence tool:
https://help.optuma.com/kb/faq.php?id=525
Here’s CBA with ANZ overlaid using the left scale (click and drag the scales to move the charts) and the Divergence tool:
Hi Darren
That is very helpful to know. FYI if the Divergence index is 100 for ABC stock and 150 for XYZ - can this number be compared i.e. in a rank backtest for example.
cheers
Mandeep
Ah ok - yes I think so. When DVI() is added to a watchlist and sorted those with the highest value have the steepest trend. Direction may be important too, as PFE is the 3rd highest out of the Dow 30 but it’s sloping down: