APIBridge, Amibroker
This tutorial shows how RSI Divergence System and Indicator AFL L can be used on charts of Amibroker to Trade
Strategy Premise
The RSI divergence is one of the most important concepts for finding trend reversals. Since the market goes up in price swings, a decrease in momentum is a sign of reversal of the uptrend. A momentum indicator such as RSI shows negative divergence when prices start losing momentum.
Alternatively, to find a negative divergence, we compare consecutive highs of prices with consecutive highs in RSI. If prices make a higher high but RSI makes a lower high, a negative divergence confirms. Similarly, the positive divergence also calculated.
Algoji removes the tiring process of manually finding out divergence by providing an automatic divergence detection formula. The same classic divergence detection rules operate manually, also used by the AFL formula.
Strategy Logic
Buy: When RSI shows positive divergence and RSI value is more than 70
Sell: When prices show negative divergence OR RSI value is less than 30
Amibroker Settings
1st Step: Make sure you have completed Jump Start setup
2nd Step: Download RSI Divergence System AFL from here and RSI Divergence Indicator from here. In Amibroker, Go to Formula editor and paste the AFL here.
3rd Step: Add Separate Entry Exit Automation AFL to the strategy AFL and hit Apply.
4th Step: Right Click on the chart and go Parameters to adjust the inputs of the strategy.
This tutorial you have learned how RSI Divergence System and Indicator AFL L can be used on charts of Amibroker to Trade
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