Divergence Features
Divergence Features extracts multiple features from the divergence of two features. The core of this function is the Features Divergence function, which finds the divergences between two numeric features. To read more about this function, read here. There are two types of divergence: regular and hidden. The system can find both confirmed and unconfirmed divergences. The function has the following inputs:
Indicator: The indicator compared to the price to find divergences
Left Pivot Length: The number of candles defining the left horizon for finding pivots
Right Pivot Length: The number of candles defining the right horizon for finding pivots
Confirmation Candles :The number of candles the system waits to confirm a divergence
Memory Window Length: To remember the occurrence of divergences, the Memory function is used; this parameter defines the window size of the Memory function. To read more about this function, read here.
Pivot Source: Defines the source used to find pivots in the price; when Close is used, the close prices of the candles are used, and when High/Low is used, the high and low prices of candles are used for high and low pivots, respectively.
Memory Ignored Value: The Ignored value of the Memory function; Read the memory documentation.
Knowing that we have two types of divergence and we can either wait for a confirmation or use unconfirmed results, Divergence Features has the following outputs:
confirmed hidden divergence: Contains hidden divergences confirmed after Confirmation Candles number of candles
confirmed regular divergence: Contains regular divergences confirmed after Confirmation Candles number of candles
unconfirmed hidden divergence: Contains unconfirmed hidden divergences
unconfirmed regular divergence: Contains unconfirmed regular divergences
confirmed hidden divergence memory: The result of passing hidden divergences confirmed after Confirmation Candles number of candles to the Memory function
confirmed regular divergence menory: The result of passing regular divergences confirmed after Confirmation Candles number of candles to the Memory function
unconfirmed hidden divergence memory: The result of passing unconfirmed hidden divergences to the Memory function
unconfirmed regular divergence memory: The result of passing unconfirmed regular divergences to the Memory function