Help

Overview

This site can help you find MACD Divergences (and more) in US stocks, ETFs, and futures. This page describes the tools available to members of divergence-alerts.com. What you make of it is up to you!

divergence-alerts.com is constantly growing! Starting from a strong foundation in MACD divergences, it is expanding with broad market status to better meet our needs for active investing and trading. After my contract with Fidelity Investments led to research in Exchange Traded Fund (ETF) Rotation, a section on this easy portfolio management technique is the latest addition.

Contents:
Weekly Market Status
ETF Rotation
MACD Divergences
Intro to MACD
Divergence Count Indicator
MACD Divergence Strategies Explained
MACD Lines Divergence
MACD Histogram Divergence
Fuzzy Divergences
Quick Exits
Markets Scanned
DJIS
ETFS
USTKS
FUTURES - discontinued
INTRAS
Evaluate Strategy Performance
Naming Convention for Strategies BackTested
How to Choose MACD Divergence Strategies
The Divergence Matrix
Top Down Analysis
How to Find MACD Divergences
Email Alerts
About This Website
Video Tour
Today's Alerts Spreadsheets
Faster Service by Syncing with the Cloud Folder
Preparing to Trade MACD Divergences
Tracking MACD Divergences on Your Own Watchlist
More Info
FAQ
Contact Support

Weekly Market Status

Just as you can't build a whole car with just a wrench, going at the market with MACD Divergences alone is not going to get the job done as well as we might like. Each week, I look through these indicators to get the big picture of what's going on in the markets:

  • Leading Economic Indicators
  • S&P 500™ P/E Ratio Valuation
  • Put / Call Ratio
  • Market Trend and Divergences of Key Indices
  • Volatility Index (VIX)
  • Breadth - McClellan Summation Index
  • Yield Spreads between treasury and corporate bonds
  • Divergence Count Indicator (DCI) - more on this below
  • New Highs / New Lows
  • Calendar

Platinum members receive a video each month which walks through the current market status of these indicators and also individual MACD divergences. I also go over the highlights from my market analysis in the weekly email alerts to Platinum, Gold and Silver members at the end of the week.

Sample Platinum Newsletter with Market Status Video
(This one has a very plain format. I've since spiffed the news letters up a bit.)

This next video will give you more of general tour of the process for weekly market status and one way to use the features of the divergence-alerts service:
Dec 1, 2011 Market Status Video

For more background on market analysis, watch this presentation from MoneyShow San Francisco 2012.
Nine Essentials of Market Analysis - webcast
Download Slides from Nine Essentials of Market Status Presentation


ETF Rotation

A dedicated Rotation page for members of this website details the workings of the ETF Rotation strategy from my book, Truth About ETF Rotation: Fund Your Retirement By Investing In Top Exchange Traded Funds in One Hour Per Week (Beat The Crash) (Volume 1), applied to a model portfolio. This page reports:

  • the current rankings of the candidate ETFs
  • the current holdings of the model portfolio
  • performance summary

The weekly rankings of the ETFs I use for rotation plus my commentary are included in weekly email to all members of divergence-alerts.com.


MACD Divergences

The rest of this page is about divergences between the MACD indicator and price. These next sections will walk you though what is available in divergence-alerts and how it applies to stereotypical trading scenarios.

As the hub for all things related to MACD divergence, this site serves traders who come from unique perspectives and have different goals. For that reason, multiple types of MACD divergences are shown. Its not my aim to tell you what you should be doing. I'll just give you a rundown of what's here and it's up to you to pick out what suits you.

All of the data comes from scans run with a heavy-duty version of my MACD Divergence Detector Add-ins for TradeStation™.


Intro to MACD

First off, if you are not totally familiar with the MACD (Moving Average Convergence Divergence) technical indicator or just want review, watch this 21 minute video from The Truth About MACD™ series to understand how to read the MACD:

Package - click icon below Description
Lesson 1 of The Truth About MACD video series introduces the MACD by graphically showing how its constructed.  Illustrates the many moving parts of MACD by showing how the MA crossovers, the MACD lines and the MACD Histogram all relate to each other. 

Watch with the Study Guide for Lesson 1 at the ready.  There is a quiz at the end of the video.  Feel free to hit pause to take notes as you go along.


Divergence Count Indicator

When I first started this service, a fellow called Trader Joe suggested that as long as I am tracking all the divergences across the US stock market, I might as well count them up and use it as a market-wide indicator.

In a nutshell, historical testing showed that the best times to act on MACD positive divergences - that is the best times to buy stocks that have a positive MACD divergence - came when the overall count of positive divergences was high and the overall count of negative divergences was low.

I've come to regard these times as windows of opportunity. When there's lots of MACD lines positive divergences in the market (as measured by a rolling average of over 10) then I say that the P-Zone window of opportunity is open. When there's few MACD lines negative divergences in the market (rolling average under 5), I say the N-Zone window of opportunity is open.

They are only buying opportunities. When the window of opportunity closes, it is NOT a sell signal. It just means that it is not among the best times to buy.

The daily Divergence Count is reported in the alerts email each week. Also, you can visit the DCI Page for daily status of the indicator, graphs and data dumps. The naming convention within the raw DCI data files is

  1. U for USTKS, D for DJIS
  2. M for MACD
  3. L for Lines, H for Histogram
  4. P for Positive, N for Negative
  5. D for Daily, W for Weekly

The definitive guide to the Divergence Count indicator is on the BackTests Page

All of the above is available to all members of divergence-alerts.com In addition, Platinum members have access to an intra-day divergence count. See the Intras section below.


MACD Divergence Strategies Explained

The scanners look for several different flavors of MACD Divergence as entry signals. This section tells you all about them.

The entry signals are MACD divergences and the exits are (usually) the opposite type of MACD Divergence. For example, enter long on MACD Lines positive divergence, exit on MACD lines negative divergence. Or enter short on MACD Histogram negative divergence and exit on MACD Histogram positive divergence.


MACD Lines Divergence

This is the classic MACD divergence as described by the inventor Gerald Appel in his book Technical Analysis: Power Tools for Active Investors. A positive divergence takes place when the price hits a new low but the MACD line, which had been below zero, is not at a lower low. A negative divergence takes place when the price hits a new high but the MACD line, which had been above zero, is not at a higher high. When space is at a premium, MACD Lines Divergences are abbreviated MACDL_Div. Notice how Appel's histogram is plotted for the MACD line in the TradeStation™ chart below:
MACD Lines Divergence Chart by TradeStation

(Click on the chart for a larger image.)


MACD Histogram Divergence

The reference for MACD Histogram Divergence is Trading for a Living: Psychology, Trading Tactics, Money Management by Dr. Alexander Elder. A positive divergence takes place when the price hits a new low but the MACD histogram, which had been below zero, is not at a lower low. A negative divergence takes place when the price hits a new high but the MACD histogram, which had been above zero, is not at a higher high. An additional constraint for MACD histogram divergences is that the MACD histogram has to break the zero line sometime between the price extremes. Dr. Elder calls this breaking the back of the bear/bull. When space is at a premium, MACD Histogram Divergences are abbreviated MACDH_Div. The red indicator at the bottom is the MACD histogram in this TradeStation chart:
MACD Histogram Divergence Chart by TradeStation

(Click on the chart for a larger image.)


Fuzzy Divergences

The Option Hunter, Dale Wheatley, advocates a variation of the MACD Lines divergence where the price does NOT make a new extreme. That is, a positive divergence occurs when price makes a slightly higher low and MACD also makes a higher low. A negative divergence occurs when price makes a slightly lower high and MACD also makes a lower high. I call these Fuzzy Divergences and abbreviate "Z" when needed. The StockFinder™ chart shows an example of a fuzzy divergence. The low on the right, at $36.50 is higher than the previous low of $35.11 and the MACD lines are trending upwards to make the fuzzy positive divergence.
Fuzzy MACD Divergence Chart by StockFinder

(Click on the chart for a larger image.)


Quick Exits

Instead of waiting for a matching divergence to exit, the strategies marked Q take a quicker exit, as follows:

  • MACD lines positive divergence entries take their quick exits on MACD lines crossing down while above zero
  • MACD lines negative divergence entries take their quick exits on MACD lines crossing up while below zero
  • MACD histogram positive divergence entries take their quick exits on MACD histogram ticking down while above zero
  • MACD histogram negative divergence entries take their quick exits on MACD histogram ticking up while below zero


Markets Scanned


DJIS

Dow Jones™ maintains a set of indices that track the sectors defined by the IC Benchmarks Structure (ICB). The IC Benchmarks Structure gives a standard way to classify stocks into sectors. Within divergence-alerts, the DJ US indices and their MACD divergences are presented on the DJIS sheet/page. Sort and search the DJIS list in the same manner as the USTKS and ETFS lists. Since DJIS represent indices rather than directly trade-able instruments, they are not subject to minimum volume requirements for the divergence scans. Note that ETFs are available in the next section that track the DJIS sectors.

ETFS

Over 900 Exchange Traded Funds (ETFs) are scanned daily for MACD divergences. These ETFs are all traded on the US stock exchanges, however, many represent international markets and stocks. The iShares™ family of ETFs includes proxies for the Dow Jones US indices representing the IC Benchmark Structure of market sectors. Since many ETFs are arbitraged to maintain their price relative to a widely traded index, the ETFs are not subject to minimum volume requirements for the divergence scans. ETFs do need at least 51 weeks of history (about a year) to check for divergences.

USTKS

This scan begins with a full list of over 4,000 stocks listed on the US exchanges (NYSE, NASDAQ™, NYSE MKT, aka AMEX). The stocks are filtered for a minimum weekly bar count of 51 needed to plot the MACD Divergences. They are also filtered to remove those with volume below 200,000 shares per day on the day the list is created. The result is approx. 2500 stocks scanned end-of-day for MACD divergences. The most recent divergence date is available for all stocks en masse on the USTKS page, or you can check the specific ETF pages to see only the component stocks tracked by that specific ETF.

FUTURES

Futures coverage has been discontinued. There is an ETF or two to represent most indices and commodities.

INTRAS

The name INTRAS is short for Intra-Day Divergences. The ~550 stocks scanned come from the Weeklys™ Option list plus the components of the S&P500. The INTRAS scans run each hour at the bottom of the hour (e.g. 10:30), after each hourly bar closes on the chart, and again at 4pm eastern. It takes 15 minutes to run the scans and post the results. The raw scan results along with a count of the various types of divergence are automatically uploaded to the INTRAS page at 45 minutes after the hour. At the end of the week, I comment on the overall hourly count in the Platinum members' email alert. Often the hourly count leads the daily count and points toward direction changes as they are just getting started.


Evaluate Strategy Performance

Before diving into the lists of divergences, you might want to check the performance of each strategy so that you know what kind of divergence interests you most. The BackTests Page is the place for that.

Please keep in mind that backtesting is just a simulation with significant differences from reality and past performance does not guarantee future results.


Naming Convention for Strategies BackTested
  1. Type of markets tested: USTKS, ETFS, DJIS, FUTURES
  2. The strategy tested; here are the letters in order:
    • M - MACD
    • L or H - Lines or Histogram
    • D - Divergence
    • L or S - Long or Short
    • Z - fuzzy divergence which did not make a price extreme
    • Q - quick exit which ends the trade on a MACD lines crossing or MACD Histogram uptick/downtick. The exit otherwise is a matching divergence from the entry signal.
  3. The timeframe tested: Weekly or Daily.
  4. The date the test was run, in format yymmdd.


How to Choose MACD Divergence Strategies

As an example, consider a short-term trader who probably wants strategies that have high win rates. Here is a screenshot of the BackTests Page sorted by win rate:

From the screenshot you can see that even the top strategies are getting 69% wins which implies 30% losses. The top 2 win rates are on DJIS. It turns out that many of these indices are trade-able with iShares ETFs.

Both are following the MACD Lines (L) Divergences (D) in the Long (second L) direction on the Daily charts. The difference is Q which stands for Q exit.

Normally (without the Q), the backtester waits for a negative divergence to exit. It is in the trade longer that way. Since the market has an upward bias and has gone up lately, we see that waiting for the negative divergence to exit brought a greater average win and greater expectancy than Q.

However, the Q stands for Quick and it is out of the trade more quickly. You can see the Q average hold is 28 bars versus 60 bars for the regular exit. The Q exit signal is MACD Lines crossing DOWN, while greater than zero. So the trade starts with the MACD lines below zero and positively diverging. Then it waits until the lines get above zero and then cross down, or the stop is hit, whichever comes first.

An active investor who wants big winners might sort by Expectancy to find the markets and strategies that are racking up the gains.

The BackTests Page is updated each week so that all members can see what has worked lately and what has not. In collecting the statistics, the backtester is not considering outside information beyond the MACD. So anything gained from the market analysis is gravy.

Also available from the BackTests Page is a spreadsheet with all the raw trades from the current backtests. Ping me if you have questions and I will eventually document it.


The Divergence Matrix

A key concept to understand to make the most of this website is the divergence matrix.

In the web pages and in the spreadsheet are tables that list one ticker per row and a column for the major types of divergences and timeframes. At the intersection is the date of the most recent divergence of the column's type for the row's ticker. The divergence dates are color-coded: green for positive divergences and red for negative divergences. The colors fade as the date goes further back.

See below for an example from the USTKS tab of the Today's Alerts spreadsheet.
MACD divergences on US stocks

Critical to finding your way through the matrix is to sort each column Newest to Oldest. That brings the most recent divergences to the top so that you can see which tickers have divergences.

The website pages have the same columns in the same order as the spreadsheet example above. To save space, the headings are abbreviated as follows:

  1. M for MACD Divergence
  2. L for Lines or H for Histogram
  3. P for Positive or N for Negative
  4. D for Daily or W for Weekly

Notice that you can see across the row from Weekly to Daily at a glance. This makes it very easy to tell if a stock or ETF has divergences in multiple timeframes - which can mean better results.


Top Down Analysis

Take a top-down approach to the market by checking the DJIS and ETFS first for divergences. For many ETFs, the component stocks tracked by the fund are listed in a divergence matrix of their own. Links from the main ETFS page take you there or type this in the address bar of the browser:

http://divergence-alerts.com/etfs/xxx where xxx is the ticker of the ETF.

For example, http://divergence-alerts.com/etfs/qqq brings up a sortable matrix of the components of the QQQ.

In the spreadsheet, simply click on a highlighted ticker on the ETFS sheet to be taken to a sheet listing divergences for that fund's stock holdings. In the example below, clicking on the link for GDX...

ETFs with MACD Divergences

...brings you to the sheet that lists all the individual gold miners tracked by GDX. Here you can see all the dates of the most recent MACD Divergences on each of them.
MACD Divergences on stocks inside GDX

Drilling down into the ETF components is useful in two ways:

  • It shows how much underlying support is there for a divergence on the ETF. For example, if the QQQ has a positive divergence on MACD but very few of its component stocks have positive divergence, the move might not be so strong.
  • The ETF or index is probably not as volatile as the stocks inside. One way to look for a bigger move is to look for stocks with MACD divergences inside an ETF with a divergence.


How to Find MACD Divergences


Email Alerts

Every week, usually Saturday, I write an email for Gold and Platinum members with the HIGHLIGHTS of the MACD divergences that show up that day. Some weeks the email is short when the market is quiet. Other weeks, such as when the market approaches a turn, the email is just the tip of the iceberg of MACD divergences in the US stock market.

The alerts email focuses on market status, ETFs, ETF Rotation, and weekly MACD divergences. This email goes out to Silver members as well as Gold and Platinum.

Included in the alerts email is the status of the Divergence Count Indicator. Platinum members receive a recap of the intra-day divergences as well.

The email message always contains links to the most recent spreadsheet of data and key pages on the web site. I encourage you to make use of these resources!

Bronze members simply get my comments on ETF Rotation, which are included in email to subscribers at all levels.


About This Website

The divergence-alerts.com website shows you what alerts come up each day. You can do the same research into divergences on this website as you can with the alerts spreadsheet - the choice is up to you.

Video Tour

For Downloads, you might need to right-click and "Save As" or "Save Link As".   For iPhone, right-click and save-as to download to your MAC or PC, import into iTunes with File->Add File to Library, sync to iPod app on iPhone
Part 1: Log On, Back Tests, Help
Watch | Download (mp4) | iPhone
Part 2: Daily Alerts
Watch | Download (mp4) | iPhone
Part 3: DCI, DJIS, ETFS, USTKS, Weekly Alerts
Watch | Download (mp4) | iPhone
Useful video but please ignore the section on the Forum. I ran into technical difficulties with the forum-building software and abandoned it in favor of my strategy research. You can always converse in comments on the web pages.


Today's Alerts Spreadsheets

You can do the same research into divergences with the alerts spreadsheet as you can on this website - the choice is up to you.

The Legend tab inside the spreadsheet is waiting to orient you to what's inside. To preview it, you can download just the Legend tab here.

In this July 7, 2010 analysis of the Today's Alerts file I shows each feature, and in the process uncover some interesting behavior of ETF components. Here's the 27 min video:
Watch Video | Download Video (mp4) : you might need to "SaveLinkAs"


Faster Service by Syncing with the Cloud Folder

Gold and Platinum members: if you'd like to have the end-of-day alerts on your computer all ready to go when you are, here are a couple simple steps to sync up with the DivAlerts cloud folder.  This should save you a few minutes each day and allow you to jump right into your analysis without waiting for the download.

  1. Sign up for free with dropbox.com and install the dropbox application.
  2. Send me an email so I know to grant you permission to the access the folder.
  3. Each day after the run completes, the Most_Recent_Spreadsheet and Most_Recent_DCI are written to the folder. Each weekend, detailed backtest results of MACD divergences are written to the folder too. When these new files arrive, dropbox will automatically sync your computer and you get immediate access.
  4. Go to the dropbox DivAlerts folder, and double-click to open the Most_Recent_Spreadsheet.zip.
  5. SaveAs to your own folder to keep a local copy.


Preparing to Trade MACD Divergences

Head over to the Daily Alerts section (or Weekly Alerts) for the most recent list of MACD divergences and support to trade them.

For each line on the alerts page...
The strategy type is identified:

  • MACD_Lines_Div_Long: Buy on MACD Lines Pos Div and Sell on MACD Lines Neg Div with Fixed 3 ATR Stop Loss
  • MACD_Lines_Div_Short: Short on MACD Lines Neg Div and Cover on MACD Lines Cross Upwards with with Fixed 3 ATR Stop Loss
  • MACD_Histo_Div_Long: Buy on MACD Histo Pos Div and Sell on MACD Histo Neg Div with Fixed 3 ATR Stop Loss
  • MACD_Histo_Div_Short: MACD Histo Neg Div Short and Cover on MACD Histo Uptick with with Fixed 3 ATR Stop Loss
  • Z MACD_Lines_Div_Long: Fuzzy Positive Divergence where the price did not make a new low and MACD Lines confirms

Each signal type from the MACD Divergence detector scan is then listed:

  • MACD Lines Pos Div Buy
  • MACD Lines Neg Div Short
  • MACD Histo Pos Div Buy
  • MACD Histo Neg Div Short
  • MACD Lines Turn up Cover
  • MACD Histo Ticks up Cover
  • Tomorrow: MACD Lines Pos Div Price (anticipated divergence)
  • Stop Hit

The price listed for the anticipated divergence is the calculated value that would cause the divergence to happen. For the other signal types, the price is marked "n/a".

The "Init ATR" is the Average True Range (ATR) at the time the opening divergence was detected.

The "Init Stop" is the stop loss price at the start of the trade, calculated as 3 times the ATR and either subtracted from the closing price of a positive MACD divergence or added to a negative divergence.

The "Trade Size" is calculated as the number of shares that would risk the number of dollars specified by "Risk Amt" if the trade hit its stop. In other words, it is the risk amount divided by 3 times the ATR.

The remaining calculated value is Volume Surge which is the multiple of the 20-day average volume seen on the day of the signal. So if a stock has a MACD Divergence and a volume surge twice the average volume, this column reads 2. If the volume is less than average on the day of the signal, the Surge will be less than one.


Tracking MACD Divergences on Your Own Watchlist

The spreadsheet contains a tab labeled My Stocks which has a blank divergence matrix. Fill in the first column with your own tickers, and see the divergence dates come up automatically. Note, this requires that the USTKS sheet is sorted in alphabetical order by ticker.


More Info

Free Videos about investing and trading.
My Annotated Reading List

FAQ

Q: When I click on a menu item, it takes me to the "Join" page.  What's up with that?
A: When you click a menu item for a level of service you have not yet purchased, it offers you a path to upgrade.

Q: How can I upgrade or downgrade my level of service between Silver, Gold, Platinum?
A: To change level of service you need to first cancel the current level in Paypal and then purchase the new level. Please send an email to support (at) divergence-alerts.com to help you.

BackTesting Blog FAQ

Contact Support

Or better yet, leave a comment so that everyone with the same question can learn the answer. Either way, I will strive to get back to you within one business day.

(Own Mountain Trading Company is an Amazon Associate and may be compensated for purchases you make from the links on this website. All trademarks are the property of their respective owners. divergence-alerts, The Truth About MACD, The Truth About ETF Rotation, and Beat the Crash are trademarks of Own Mountain Trading Company.)

19 Comments on "Help"
  1. Comment left on:
    March 12, 2016 at 4:45 pm
    David Miller says:

    I watched the video to Lesson one on MACD. Where do I find lessons 2 thru 10?

    • Comment left on:
      March 13, 2016 at 11:10 am
      div-admin says:

      As a Silver Member, you can purchase the video series here: http://divergence-alerts.com/tamacd/
      Or sign up as a Platinum divergence-alerts.com member to get the videos free

  2. Comment left on:
    December 27, 2013 at 10:19 am
    glenn rhodes says:

    Hi Jackie,
    In trying to Track MACD Divergences on Your Own Watchlist, I ensured that the USTKS sheet is sorted in alphabetical order by ticker; however, the ‘MyStocks’ sheet is already populated and when I remove and enter my own tickers the divergences do not appear to be showing correctly. Please help me troubleshoot.

    Thanks,
    Glenn

  3. Comment left on:
    November 16, 2012 at 12:01 pm
    joseph colell says:

    Jackie,

    One other quick question – why is that MACD is a predictive vs other moving averages which are lagging. MACD after all is it a moving average itself? Do you agree the histogram is the most powerful, reliable and predictive signal than the: a) the MACD centerline…”0″ line crossover, b) MACD line cross over the signal line c) MACD divegence with price.

    joe colell

    • Comment left on:
      November 16, 2012 at 12:44 pm
      div-admin says:

      I think MACD is a lagging indicator.

      MACD histogram is surprising because mathematically, it is the furthest removed from price. However, it is usually the most sensitive and the first to react to a change in direction.

      I do believe MACD Histogram still lags in that the price much change direction before the MACD Histogram changes.

      What we see in a divergence is not the MACD lines or histogram acting before the price move but that the indicator’s movements are not as extreme as the slightly leading price movement.

      Does that make sense?

  4. Comment left on:
    November 16, 2012 at 11:10 am
    joseph colell says:

    jackie, why don’t you use ppo vs. macd. According to stockcharts lengthy analysis PPO is more precise and not distorted by stock price differences.

    Also could you please tell me what 3 other non-correlated technical analysis you prefer to compliment MACD?

    thank you
    Joe Colell

    • Comment left on:
      November 16, 2012 at 12:41 pm
      div-admin says:

      When I did all my original backtesting, I hadn’t even heard of PPO. I also learned about it from StockCharts.

      Now, the divergence-alerts scans follow MACD and MACD histogram because that is the widely accepted practice in the industry and the common signal for customers coming from many different backgrounds. In my daily analysis, I do look at PPO on the StockCharts for convenience.

      The other technical indicators I use to compliment MACD are covered in the Platinum webinar and Friday afternoon email alerts:
      – support / resistance
      – 200/50 day MAs (ok this somewhat correlates with MACD)
      – VIX
      – breadth via the McClellan Summation Index
      – put / call ratio

      Thanks for your questions!

  5. Comment left on:
    September 23, 2012 at 2:52 pm
    Matthew Robinson says:

    Last post:

    What book (just one due to time available for reading) would you recommend to someone just beginning technical analysis but savvy in financial analysis in general (took CFA level I – III tests)? Preferably I would want one that was written or revised after the 2008-9 bear market. Thanks

  6. Comment left on:
    September 23, 2012 at 2:50 pm
    Matthew Robinson says:

    Hi again,

    I have a few questions relating to utilizing the daily alert spreadsheets in about MACD in general.

    ENTER/EXIT DIVERGENCE TIMEFRAMES: When you identify a “new” high or “new” low for price and/or indicators, what does that mean? Clearly there is no new global low ever unless we have armagetton. It also might not be useful and you clearly do not use a new intra-hour low. Is this based on a price change threshold or a minimum time persion or something else? This is particularly important for exits since you leave those up to us. On what time scale or price move threshold should we determine when there is a positive divergence after going short for example?

    Ex:) Look at WFM. Would someone entering short on either 8/23 or 9/18 still in the position based on the rules presented above? From my understanding we would still be in the position unless we had a predetermined stop not based on the divergence system.

    MACD USEFULNESS TIMEFRAME: Notwithstanding the results from backtesting, since MACD is not an absolute value, doesn’t it erode its useful ness when comparing values across longer and longer time frames? With my current understanding I am dubious of a 200 day comparison. Comments?

  7. Comment left on:
    September 23, 2012 at 2:40 pm
    Matthew Robinson says:

    Thanks for the polite answer to my previous post. I didn’t realize that all the answers I sought were on the exact same page as this help thread! In fact I don’t think you need to rewrite the “instruction manual” as you mentioned. I do think you might make navigation a little more conductive to people skimming. A specific suggestion would be to include in our introductory email a direct link to the content on this page EXcluding the Q&A thread and labeled “getting started”, etc.

    I have some specific technical questions – ill post separately for clearer help Q&A browsing.

  8. Comment left on:
    September 13, 2012 at 10:35 pm
    Matthew Robinson says:

    I am new. I am sure everyone else knows this but I cannot find a manual or where else to look this up so I’ll post an infinite amount of questions. If there is a place to look it up then just direct me there and don’t worry about answering each questions.

    I saw your video talking about the general ideas behind your tools. I resonate. Now about the web site…

    1) What is going on in the backtesting page? I do not know what a strategy refers to. You point out positive and negative opportunities in your daily email but as far as I know leave it to use to figure out when to enter and exit. Therefore I do not understand how you come up with a win/loss/etc./etc. statistics.

    2) What do the following abbreviations along the top stand for (DCI, USTIKS).

    3) Then what is going on in each page after clicking on the links at the top?

    I think those are enough questions for now. Sorry if I am missing something obvious.

    • Comment left on:
      September 17, 2012 at 1:37 pm
      div-admin says:

      Matt-
      Thank you for posting. I will reply here so everyone who also has the same questions can learn from the answers.

      There is a user’s guide accessible from one of the links above. I will go through and give it an update within a few weeks.

      So you don’t have to go looking up everything, here are responses to your questions:
      The BackTest page shows the new results each week of running the scanners in backtest mode. That page sure does need a legend! I will add one, and can start by writing it here.
      The first part of the name refers to the type of markets tested: DJIS = Dow Jones Sectors, EFTS = exchange traded funds, USTKS = individual stocks.
      The second part refers to the strategy tested; here are the letters in order:
      M – MACD.
      L or H – Lines or Histogram.
      D – Divergence.
      L or S – Long or Short.
      Z – fuzzy divergence which did not make a price extreme.
      Q – quick exit which ends the trade on a MACD lines crossing or MACD Histogram uptick/downtick. the exit otherwise is a matching divergence from the entry signal.
      The third part of the name refers to the timeframe tested: Weekly or Daily.
      The fourth part of the name is the date the test was run in format yymmdd.
      For this simulation, the entry signals are MACD divergences and the exits are (usually) the opposite type of MACD Divergence. For example, enter long on MACD Lines positive divergence, exit on MACD lines negative divergence. Or enter short on MACD Histogram negative divergence and exit on MACD Histogram positive divergence.

      The stats in the table are calculated from that simulation run. You can click the tiny arrows at the top of the table to sort. For example, click near win rate to bring up the strategies that have the best win rate lately.

      I do not give specific instructions on which trades to take because I don’t know each member’s goal, risk tolerance, etc. I will post an example of how to use the Backtest page to analyze and choose strategies within this week.

      Hope this helps! Thanks again for asking, it will improve the documentation for everyone.

      Best,
      Jackie

  9. Comment left on:
    July 21, 2012 at 4:27 pm
    les haugen says:

    On the ETFS Daily Charts I don’t see a MACD indicator ??

  10. Comment left on:
    July 21, 2012 at 4:20 pm
    les haugen says:

    I don’t see any neg div on IVW,IWB, IWV…….in fact, the charts are such that I can’t see an important peek in the MACD on any of the charts to even judge whether there is a div.

    Perhaps I’m not understanding something.

    • Comment left on:
      July 22, 2012 at 5:39 am
      div-admin says:

      on Friday 7/20/12, these three ETFs – IVW, IWB, IWV – all have MACD histogram divergences as noted by the scanner. The MACD Histogram is lower now than at a previous price high. They were not flagged with MACD lines divergences, only MACD Histogram.
      Thanks for your comments!

  11. Comment left on:
    April 17, 2011 at 8:32 pm
    marty says:

    Jackie,
    I am only interested in swing trades. Is there a way to find good candidates for this purpose? Thanks.

  12. Comment left on:
    February 28, 2011 at 11:04 pm
    john says:

    jackie where do i go to put in various parameters? what do the numbers mean in the stock surge column?

    is there anyway to screen out stocks with divergences with high volumes?

    • Comment left on:
      March 1, 2011 at 8:19 am
      div-admin says:

      John, The Surge column is the volume surge. It is the multiple of the 20 day MA of volume. You can sort on that column to screen out stocks with the high volumes.

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