I want to create a loop to automate finding MACD divergence with specific scenario/criterion, but I am finding it difficult to execute although its very easy to spot when looking at chart by eyes. Note: you can easily get this as ready available scanner but i want to improve my python knowledge, hope someone will be able to help me here with this mission.
My main issue is how to make it reference 40 rows up, and test forward – couldn’t get my head around the logic itself.
The rules are as follow: lets say we have the table below
| Date | Price | MACD Hist |
|---|---|---|
| 04/08/2021 | 30 | 1 |
| 05/08/2021 | 29 | 0.7 |
| 06/08/2021 | 28 | 0.4 |
| 07/08/2021 | 27 | 0.1 |
| 08/08/2021 | 26 | -0.15 |
| 09/08/2021 | 25 | -0.70 |
| 10/08/2021 | 26 | -0.1 |
| 11/08/2021 | 27 | 0.2 |
| 12/08/2021 | 28 | 0.4 |
| 13/08/2021 | 29 | 0.5 |
| 14/08/2021 | 30 | 0.55 |
| 15/08/2021 | 31 | 0.6 |
| 16/08/2021 | 30 | 0.55 |
| 17/08/2021 | 29 | 0.5 |
| 18/08/2021 | 28 | 0.4225 |
| 19/08/2021 | 27 | 0.4 |
| 20/08/2021 | 26 | 0.35 |
| 21/08/2021 | 25 | 0.3 |
| 22/08/2021 | 24 | 0.25 |
| 23/08/2021 | 23 | 0.2 |
| 24/08/2021 | 22 | 0.15 |
| 25/08/2021 | 21 | 0.1 |
| 26/08/2021 | 20 | 0.05 |
| 27/08/2021 | 19 | 0 |
| 28/08/2021 | 18 | -0.05 |
| 29/08/2021 | 17 | -0.1 |
| 30/08/2021 | 16 | -0.25 |
i want the code to:
look back 40 days from today, within these 40 days get the lowest point reached in MACDHist and Price corresponding to it(i.e. price 25$ on 09/08/2021 in this example and the MACDHist -0.7)
compare it with today’s price & MACDHist and give divergence or not based on below 3 rules:
- If today’s price < the recorded price in point 1 (16$ < 25$ in this example) AND
- Today’s MACDHist > the recorded MACD in Absolute terms in point 1 (ABS(-0.7) > ABS(-0.20)) AND
- During the same period we recorded those Price and MACDHist (between 09/08/2021 and today) the MACDHist was positive at least once.
I am sorry if my explanation isn’t very clear, for that the below picture might help illustrate the scenario I am after: A. The Lowes MACDHist in specfied period B. Within the same period, MACDHist were positive at least once C. Price is lower than in point A (Price C is lower than A) and MACDHist was higher than MACDHist in Point A (i.e. Lower in ABS terms)
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Answer
I found the answer in this great post. its not direct implementation but at least the logic is the same and by replacing RSI info with MACDHist you get to the same conclusion. How to implement RSI Divergence in Python