///////////////////////////////////////////////////////////
// STOCH divergences on price (original for MACD)
// by Jose Callao
// twitter @jose7674
// attach this indicator to the chart
N=40///N is the number of bars to look back for a divergence. Normal values are 20-40. Must be the same in both indicators
//using any other indicator is as easy as changing the values
miSTOCH = Stochastic[14,3](close)
Signal = 0
IF (BarIndex > 10+1+N) THEN
//we look for bearish divergences
IF (miSTOCH[1]>miSTOCH AND miSTOCH[1]>miSTOCH[2]) THEN
extremum2=miSTOCH[1]
extremum1=highest[N](miSTOCH)
preciomax2=close[1]
preciomax=Highest[N](close)
IF(extremum2<extremum1 AND preciomax2>preciomax[1]) THEN
for i=1 to N
if close[i]=preciomax[1] then
//zz=i
Signal = 2
//drawsegment (barindex[1], close[1], barindex[zz], close[zz]) coloured(200,0,0)
endif
next
endif
endif
//we look for bullish divergences
IF (miSTOCH[1]<miSTOCH AND miSTOCH[1]<miSTOCH[2]) THEN
extremum22=miSTOCH[1]
extremum11=lowest[N](miSTOCH)
preciomin2=close[1]
preciomin=lowest[N](close)
IF(extremum22>extremum11 AND preciomin2<preciomin[1]) THEN
for i2=1 to N
if close[i2]=preciomin[1] then
//zz2=i2
Signal = 1
//drawsegment(barindex[1], close[1], barindex[zz2], close[zz2]) coloured(0,200,0)
endif
next
endif
endif
endif
SCREENER[Signal](Signal AS "1=↑, 2=↓")
.
