Divergence Calculator

Step-by-Step Guide to Using the Divergence Calculator

This guide helps you understand and use the Divergence Calculator effectively to analyze asset price movements and oscillator divergences. Follow each step carefully to ensure accurate calculations and interpretations.

Step 1: Input Current Asset Price

The first step is to provide the current market price of the asset you are analyzing. Locate the input field labeled Current Asset Price. Ensure you enter a valid number, keeping in mind that the minimum acceptable value is 0.00001. This field is required, so leaving it blank will prevent further calculations.

Step 2: Select the Oscillator Type

Next, you need to select the type of oscillator you are using for this analysis. Choose one of the options from the Oscillator Type dropdown menu, which includes RSI (Relative Strength Index), MACD, and Stochastic. Selecting an option is mandatory, and it will determine how the oscillator value should be interpreted.

Step 3: Enter Current Oscillator Value

In the field labeled Current Oscillator Value, enter the current reading of your chosen oscillator. This numerical input is crucial for divergence calculations. The value must be between -100 and 100, and this field is also required.

Step 4: Input Previous Price Peak/Trough

Find the field labeled Previous Price Peak/Trough and insert the value representing the asset’s previous significant high or low. The minimum value permissible here is 0.00001. Providing this input is necessary for calculating the differences in price movements.

Step 5: Enter Previous Oscillator Value

In the Previous Oscillator Value field, input the previous extreme reading for your oscillator. This should also be a number between -100 and 100, and filling out this field is compulsory for determining oscillator movement.

Step 6: Interpret the Results

After entering all the required inputs, the calculator will provide several results:

• Price Movement (Δ): This value reflects the difference between the current price and the previous price.
• Price Change Percentage: This percentage indicates how much the price has changed relative to the previous price.
• Oscillator Movement (Δ): The difference between the current oscillator reading and the previous one.
• Divergence Type: This label categorizes the type of divergence based on price and oscillator movements. It can be “Bearish,” “Bullish,” or “No Divergence.”

Analyze these results to understand the nature of the asset’s price movement and oscillator divergence, which can aid in making informed trading decisions.