OPEN-SOURCE SCRIPT
[LanZhu] - Bias With Divergence
Description
Bias is also known as deviation rate which is a technical index derived from the moving average principle. Its function is to measure the deviation degree between the stock price and the moving average line in the process of fluctuation.
Usage
Generally,
Moving averages of period 6,12,24 and 72 are used in the calculation. Of course, it is adjustable and result in different sensitivity of the deviation rate.
When the stock price is above the moving average, it is positive.
When the stock price is below the moving average, it is negative.
When the stock price is consistent with the moving average, it is zero.
Example,
1. During weak market, we may take when 6-day deviation rate cross both 5 and -5 level to indicate possible overbought and oversold respectively. Reversal or rebound might happen.
2. During strong market, we may take when 6-day deviation rate cross both 8 and -8 level to indicate possible overbought and oversold respectively. Reversal or rebound might happen.
3. When all the bias lines are moving upward and across 0 line, a strong bullish trend might formed and Vice Versa for strong bearish trend
4. Divergence also added to find possible bull or bear reversal on the default bias period which is configurable.
Bias is also known as deviation rate which is a technical index derived from the moving average principle. Its function is to measure the deviation degree between the stock price and the moving average line in the process of fluctuation.
Usage
Generally,
Moving averages of period 6,12,24 and 72 are used in the calculation. Of course, it is adjustable and result in different sensitivity of the deviation rate.
When the stock price is above the moving average, it is positive.
When the stock price is below the moving average, it is negative.
When the stock price is consistent with the moving average, it is zero.
Example,
1. During weak market, we may take when 6-day deviation rate cross both 5 and -5 level to indicate possible overbought and oversold respectively. Reversal or rebound might happen.
2. During strong market, we may take when 6-day deviation rate cross both 8 and -8 level to indicate possible overbought and oversold respectively. Reversal or rebound might happen.
3. When all the bias lines are moving upward and across 0 line, a strong bullish trend might formed and Vice Versa for strong bearish trend
4. Divergence also added to find possible bull or bear reversal on the default bias period which is configurable.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
If you find the free indicators helpful, donations are welcome :)
buymeacoffee.com/lanzhu0506
buymeacoffee.com/lanzhu0506
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
If you find the free indicators helpful, donations are welcome :)
buymeacoffee.com/lanzhu0506
buymeacoffee.com/lanzhu0506
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.