MACD Divergence Strategy Builder

[Tradwell385]

Hi,

I am trying to create a strategy that plots an arrow when a divergence occurs between the MACD and price. For instance, if price continues to make higher highs, but the faster MACD value does not make a higher high. Likewise if price makes lower lows but the fast MACD does not make a lower low. I use the following MACD settings: Fast = 5; Slow = 20; Smoothing = 30. Is there a way to create this in the strategy builder? I have attached a picture to depict the kind of divergence that I'm talking about. The divergence is in the highlighted boxes. Price made a lower low, but The fast MACD was climbing higher.

Thanks

[NinjaTrader_PaulH]

Hello Tradwell385,

Thanks for your post.

I do not think it would be possible within the confines of the strategy builder due to the limitations of the strategy builder itself. It would be possible with a Ninjascript created strategy where there are no limitations. The swing indicator could be used on both price and indicator to provide the Swing High/low points. You may want to apply the swing indicator to your chart for both price and the MACD (as input to Swing) and observe if that would provide what you need.

Alternatively, if you can find a divergence based indicator, you may be able to use that (in the strategy builder or a Ninjascript strategy).

Alternatively, if you would like a strategy created for you, we can provide a link to 3rd party programmers.