Research method
Price-indicator divergence
Price-indicator divergence is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.
- Output
- Signal
- Input
- OHLC price structure and chart scale
- Horizon
- From intraday to several weeks
- Best use
- Turn a repeatable chart condition into a falsifiable trade hypothesis.
- Input: OHLC price structure and chart scale.
- Output: signal.
- Use boundary: Turn a repeatable chart condition into a falsifiable trade hypothesis.
The graph8
How the method is built, and where it has been read
Depends on
Often reviewed together
Dow Theory8 readings
Often reviewed together
Trendline9 readings
Often reviewed together
Rate of Change9 readings
Often reviewed together
Intermarket analysis9 readings
Often reviewed together
Momentum strategy10 readings
Often reviewed together
On-balance volume13 readings
Often reviewed together
Volume-price analysis14 readings
Often reviewed together
MACD16 readings
Read in the archive19 readings
1986Volume confirmation, the negative volume index, and divergence1989Volume confirmation windows and exponential average construction1990Constructing stochastic %K and %D from range position1990Build a weekly leading sector composite from scaled transports and financials1990Constructing stochastic K and D lines and divergence cues1993Score one swing with volume, bands, and price divergence1993Relative strength index events depend on the chosen input combination1994Constructing Chaikin money flow and a double-exponential smoother1995Constructing a dual-horizon force index1996Building a range-normalized divergence index from relative strength index1998Treat RSI as a testable filter rather than a trigger1999Primary-cycle windows, then stochastic confirmation1999Stochastic rules versus buy and hold2001Constructing confirmation filters for RSI overbought and oversold extremes2003Constructing divergence-equivalent relative strength index and stochastic oscillators2003Reverse-engineered RSI as a next-close projection2003Scoring open versus resolved relative strength divergences2003Constructing bull and bear balance from session paths2003Bull-and-bear-balance from OHLC bar patterns
This registry entry describes a research method. It is not investment advice and does not make a performance claim.