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AlchemyBullishDiverg (Function)

AlchemyBullishDiverg function searches for and finds occurrences of lows in prices (i.e., Low, Close, etc.) not accompanied by lows in an oscillator (i.e., RSI, Percent R, SlowD). If the criteria of the Bullish Divergence function is met, a +1 will be returned; if it has not been met, a 0 will be returned.
The AlchemyBullishDiverg function calls the function SwingLowBar. The SwingLowBar function returns the bar number of the most recent occurrence of the pattern. It can also be set to return the second, third, fourth, etc., most recent occurrence of a Swing Low.

The AlchemyBullishDiverg can be used to look for bullish divergence in oversold territory only as it is commonly used in conjunction with the Stochastics indicator.  The function can also look for complete overbought to oversold cycles requirements.

The AlchemyBullishDiverg can be used to look for bullish divergence in negative territory only as it is commonly used in conjunction with the MACD indicator.

AlchemyBullishDiverg (Occur, Price, Osc, OverBCyc, OverS, MinNeg, Strength, Length, DivFact)

Parameters

Occur

Specifies which occurrence (that is, 1 = most recent, 2 = 2nd most recent, and so on.

Price

Specifies which price of the asset of interest is to be used

Osc

Specifies the indicator applied to the asset of interest
OverBCyc Specifies the minimum overbought value for the oscillator to reach to qualify for one full cycle from oversold to overbought territory.  A full cycle must be completed before a next bullish divergence.  A negative setting disables the overbought to oversold cycle requirement.
OverS Specifies the oversold value in which to look for bullish divergence.  A negative setting disables the oversold requirement
MinNeg Specifies minimum positive value in which to look for bearish divergence.  A negative setting disables the positive value requirement
Strength Specifies the required number of bars on either side to determine a swing point.

Length

Specifies the number of trailing bars to consider

DivFact

Specifies the minimum amount by which the divergent oscillator needs to fail the oscillator pivot it is compared to.

 

Returns

AlchemyBullishDiverg returns 1 when bullish divergence is found, otherwise it returns 0.

Usage

The AlchemyBullishDiverg function checks for corresponding swing points between two values and evaluates if the most recent swing low values are moving in opposite directions.

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