Update: Multi-Divergence Indicator v2 for Think or Swim (MACD, RSI, CCI, On Balance Volume and many more)

I’ve made an update to the Multi-Divergence indicator. No more arrows! It’s now a lower histogram that gives you a picture of whether the divergence is increasing or decreasing, and also the size of it relative to all the other divergences on the chart. Here’s an example of it in action for $TSLA (Tesla Inc), along with a plot of Volume Weighted MACD for visualization:

The divergences now have a value between 0 and +/- 100. Zero means no divergence is present. A bearish divergence has a negative value while a bullish divergence has a positive value. The scale is determined by the widest divergence, whether bullish or bearish, on the current chart. In this case, the widest divergence came on Sept 15. Everything else is relative to that. If a new divergence comes along that is even larger, then the indicator will scale everything to the new max value.

You can also use this new study as-is in a scan. Just set up a study filter as described below:

Go to the scan tab in Think Desktop, and choose “Stock Hacker”.  Then you click “Add Study Filter” (First in screenshot below) then click the pencil to edit the default filter that is added (Second in screenshot):

Set the aggregation period at the top to whatever timeframe you are interested in. Then edit the default ADXCrossover() seen here under Condition Wizard:

Here’s an example of how to set the scan input, looking for bullish divergences of 30 or greater on the Volume Weighted MACD with a divergence length of 20:

You click in the upper left dropdown and choose “study”, then lookup Pro_MultiDivergence_v2 from the dropdown list. Then you can select the divergence (bulldiv or beardiv) from the Plot dropdown. Under inputs you choose the length and divergence indicator you want.

For a bullish scan: Choose “is greater than or equal to” and set the select condition dropdown at top right to “Value”, and enter your scan value as a positive number.

For a bearish scan: Choose “is less than or equal to” and set the select condition dropdown at top right to “Value”, and enter your scan value as a negative number.

This indicator is in the “Donors Only” section of my Google site under Released ThinkScript Studies. You can become a donor to the blog through PayPal here: