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.
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
If you find the free indicators helpful, donations are welcome :)
buymeacoffee.com/lanzhu0506
buymeacoffee.com/lanzhu0506
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
If you find the free indicators helpful, donations are welcome :)
buymeacoffee.com/lanzhu0506
buymeacoffee.com/lanzhu0506
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.