We are honored to be recognized as a

top trading software provider in the

2020 Readers’ Choice Awards.

WINNER: Trading Software > $1000

WINNER: Trading Software < $500
Thank you to all who voted for NinjaTrader’s industry
leading platform & brokerage services.
Futures, foreign currency and options trading contains substantial risk and is not for every
investor. Only risk capital should be used for trading and only those with sufficient risk capital
should consider trading.

ninjatrader.com
 Winner Winner...

MetaStock D/C • Winner • Trading Software $500 - $1000

Bollinger Band System • Winner • Plug-ins
Metastock R/T •1st Runner Up • Software over $1,000
XENITH • Finalist • Real-Time Market Data
Dr. Elders Trading Room • Finalist • Plug-ins
Bollinger Band Toolkit • Honorable Mention • Plug-ins

Get a FREE trial of MetaStock with Market Data!*

Visit MetaStock.com/TASC.
*restrictions apply. See metastock.com/tasc for details.
Stocks & Commodities V. 22:7 (58-59): Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos

DIVERGENCE LRS INDICATOR IN METASTOCK

This indicator is plotted in the article’s Figure 3 for FMXI. only long trades, and check close all positions on the last bar.
Click on more…, fill in interest rate (3%), and fill in 10 points
per transaction for the commissions. Click on trade execution,
D1:=Input(“DAYS FOR DIVERGENCE “ ,2 ,200 ,120 ); uncheck realistic market prices, and select buy price and sell
VFI:=Fml(“VFI”); price at open.
P1:=VFI+Abs(Lowest(VFI))+10;
LRSI:=LinRegSlope(P1,D1)/Abs(Ref(P1,-D1))*100; Test 2. Divergence
LRS:=LinRegSlope(C,D1)/Abs(Ref(C,-D1))*100;
DIVERG:=(LRSI-LRS); Enter Long
Mov(DIVERG,3,E)*100;
PERIOD:=130;
To create this formula in MetaStock, click on the indicator VCOEF:=2.5;
builder (fx), click on New…, type Divergence LRS Indicator in INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1));
the Name box and the code in the formula box. VINTER:=Stdev(INTER,30);
This formula can only be applied to indicators that do not take CUTOFF:=.2*VINTER*C;
zero or near-zero values. In order to use it with VFI or other VAVE:=Ref(Mov(V,PERIOD,S),-1);
indicators that cross the zero line, the indicator must be VMAX:=VAVE*VCOEF;
modified to take only positive values. VC:=If(V<VMAX,V,VMAX);
MF:=TYPICAL()-Ref(TYPICAL(),-1);
Test 1. VFI >0 VFI:=Sum(If(MF>CUTOFF,VC,If(MF<-CUTOFF,-VC,0)), PE-
RIOD)/VAVE;
Enter Long VFI:=Mov(VFI,3,E);
P1:=VFI+Abs(Lowest(VFI))+10;
PERIOD:=26; D1:=OPT2 {DAYS FOR DIVERG};
VCOEF:=2.5; LRSI:=LinRegSlope(P1,D1)/Abs(Ref(P1,-D1))*100;
INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1)); LRS:=LinRegSlope(C,D1)/Abs(Ref(C,-D1))*100;
VINTER:=Stdev(INTER,30); DIVERG:=LRSI-LRS;
CUTOFF:=.2*VINTER*C; DIVERG:=Mov(DIVERG,3,E)*100;
VAVE:=Ref(Mov(V,PERIOD,S),-1);
VMAX:=VAVE*VCOEF; REF(diverg,-1)>100 AND DIVERG<REF(diverg,-1) and
VC:=If(V<VMAX,V,VMAX); LRSI>0
MF:=TYPICAL()-Ref(TYPICAL(),-1);
VFI:=Sum(If(MF>CUTOFF, +VC, If(MF <-CUTOFF, -VC,0)), Sell Order
PERIOD)/VAVE;
VFI:=Mov(VFI,3,E); PERIOD:=130;
MOV(VFI,7,E)>0 VCOEF:=2.5;
INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1));
Sell Order VINTER:=Stdev(INTER,30);
CUTOFF:=.2*VINTER*C;
PERIOD:=26; VAVE:=Ref(Mov(V,PERIOD,S),-1);
VCOEF:=2.5; VMAX:=VAVE*VCOEF;
INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1)); VC:=If(V<VMAX,V,VMAX);
VINTER:=Stdev(INTER,30); MF:=TYPICAL()-Ref(TYPICAL(),-1);
CUTOFF:=.2*VINTER*C; VFI:=Sum(If(MF>CUTOFF,+VC,If(MF<-CUTOFF,-VC,0)),
VAVE:=Ref(Mov(V,PERIOD,S),-1); PERIOD)/VAVE;
VMAX:=VAVE*VCOEF; VFI:=Mov(VFI,3,E);
VC:=If(V<VMAX,V,VMAX); P1:=VFI+Abs(Lowest(VFI))+10;
MF:=TYPICAL()-Ref(TYPICAL(),-1); D1:=OPT2 {DAYS FOR DIVERG};
VFI:=Sum(If(MF>CUTOFF, +VC, If(MF <-CUTOFF, -VC,0)), LRSI:=LinRegSlope(P1,D1)/Abs(Ref(P1,-D1))*100;
PERIOD)/VAVE; LRS:=LinRegSlope(C,D1)/Abs(Ref(C,-D1))*100;
VFI:=Mov(VFI,3,E); DIVERG:=LRSI-LRS;
MOV(VFI,7,E)<0 DIVERG:=Mov(DIVERG,3,E)*100;

To create this test, click on enhanced system tester, then diverg<0 OR LRSI<0
new system (type the buy and sell order code). To run the test,
click on new simulation. Next, add securities (select GLW), Test 3. Break from base
select periodicity (weekly), click on dates, (fill in the date and
use data from 4/15/94), click on next, type in initial equity VFI
(10000), select default size (% available equity 10000), select Enter Long

Copyright (c) Technical Analysis Inc.

Stocks & Commodities V. 22:7 (58-59): Sidebar: Divergence LRS indicator in MetaStock by Markos Katsanos

PERIOD:=130; VCOEF:=2.5; Enter Long

INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1));
VINTER:=Stdev(INTER,30); CUTOFF:=.2*VINTER*C; PERIOD:=130;
VAVE:=Ref(Mov(V,PERIOD,S),-1); VMAX:=VAVE*VCOEF; VCOEF:=2.5;
VC:=If(V<VMAX,V,VMAX); INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1));
MF:=TYPICAL()-Ref(TYPICAL(),-1); VINTER:=Stdev(INTER,30);
VFI:=Sum(If(MF>CUTOFF,+VC,If(MF<-CUTOFF,-VC,0)), CUTOFF:=.2*VINTER*C;
PERIOD)/VAVE; VFI:=Mov(VFI,3,E); VAVE:=Ref(Mov(V,PERIOD,S),-1);
VMAX:=VAVE*VCOEF;
VFI>-2 AND LinRegSlope(VFI,20)>.1 AND VC:=If(V<VMAX,V,VMAX);
VFI>Mov(VFI,40,E) AND LinRegSlope(C,30)< Ref(C,-30) MF:=TYPICAL()-Ref(TYPICAL(),-1);
*.6/100 AND LinRegSlope(C,30)>0 VFI:=Sum(If(MF>CUTOFF, +VC, If(MF <-CUTOFF, -VC,0)),
PERIOD)/VAVE;
Sell Order VFI:=Mov(VFI,3,E);
SMA:=MOV(VFI,OPT1,E);
PERIOD:=130; VCOEF:=2.5; LMA:=MOV(VFI,OPT2,E);
INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1)); CROSS(SMA,LMA)
VINTER:=Stdev(INTER,30); CUTOFF:=.2*VINTER*C;
VAVE:=Ref(Mov(V,PERIOD,S),-1); VMAX:=VAVE*VCOEF; Sell Order
VC:=If(V<VMAX,V,VMAX);
MF:=TYPICAL()-Ref(TYPICAL(),-1); PERIOD:=130;
VFI:=Sum(If(MF>CUTOFF, +VC, If(MF <-CUTOFF, -VC,0)), VCOEF:=2.5;
PERIOD)/VAVE; VFI:=Mov(VFI,3,E); INTER:=Log(TYPICAL())-Log(Ref(TYPICAL(),-1));
VINTER:=Stdev(INTER,30);
VFI<-2 OR LinRegSlope(VFI,20)<-.8 CUTOFF:=.2*VINTER*C;
VAVE:=Ref(Mov(V,PERIOD,S),-1);
OBV VMAX:=VAVE*VCOEF;
Enter Long VC:=If(V<VMAX,V,VMAX);
MF:=TYPICAL()-Ref(TYPICAL(),-1);
LinRegSlope(OBV(),20)>.1 VFI:=Sum(If(MF>CUTOFF, +VC, If(MF <-CUTOFF, -VC,0)),
AND OBV()>Mov(OBV(),40,E) AND PERIOD)/VAVE;
LinRegSlope(C,30)< Ref(C,-30)*.6/100 AND VFI:=Mov(VFI,3,E);
LinRegSlope(C,30)>0 SMA:=MOV(VFI,OPT1,E);
LMA:=MOV(VFI,OPT2,E);
Sell Order CROSS(LMA,SMA)

LinRegSlope(OBV(),20)<-.8 Optimized values for SMA and LMA were 11 and 25, respec-
tively. — M.K.
Test 4. MA crossover

Copyright (c) Technical Analysis Inc.

 IBKR MARGIN LOAN 1

0.75%
Amount > $1 million
IBKR
and not much higher charges
for smaller amounts
margin loan rates 1

from 0.75% to 1.59%

Start Investing Today! ibkr.com/iwantmore

Interactive Brokers Rated #1
Best Online Broker 2020 by Barron’s*

Trading
Trading on
on margin
margin is
is only
only for
for sophisticated
sophisticated investors
investors with
with
high risk tolerance. You may lose more than your initial investment.
high risk tolerance. You may lose more than your initial investment.
Member - NYSE, FINRA, SIPC – *Interactive Brokers rated #1, Best Online Broker according to Barron’s Best Online Brokers Survey of 2020:
February 21, 2020. For more information see, ibkr.com/info - Barron’s is a registered trademark of Dow Jones & Co. Inc. [1] Margin Loan rate as
of 07/08/2020. IB calculates the interest charged on margin loans using the applicable rates for each interest rate tier listed on its website. Rates
shown apply to IBKR Pro clients only. Rates subject to change. For additional information on margin loan rates, see ibkr.com/interest
10-IB20-1374CH1358
The trading platform you’d build
(if you built trading platforms).
Customize your view of the market so you can focus on what’s important to you with thinkorswim®.
Create your own indicators with thinkScript®, visualize the market with custom charting, and use
personal predictions to forecast the values of stocks you care about with the Company Profile tool.
And, this award-winning investing experience is now commission-free.*
See what customization can do for your trades at tdameritrade.com/thinkorswim

*Applies to U.S. exchange-listed stocks, ETFs, and options. A $0.65 per contract fee applies for options trades.
Company Profile forecasts are hypothetical, based on user-defined assumptions, and not guaranteed. All investing involves risks, including loss of
principal. TD Ameritrade, Inc., member FINRA/SIPC. © 2019 TD Ameritrade.
subscribe or renew today!
Every Stocks & Commodities subscription
(regular and digital) includes:
• Full access to our Digital Edition
The complete magazine as a PDF you can download.
• Full access to our Digital Archives 8999
1 year.................
$
That’s 35 years’ worth of content!

2 years............ 149
• Complete access to WorkingMoney.com $ 99
The information you need to invest smartly and successfully.

3 years............ 199
• Access to Traders.com Advantage $ 99
Insights, tips and techniques that can help you trade smarter.

PROFESSIONAL TRADERS’ STARTER KIT

A 5-year subscription to S&C magazine that includes
everything above PLUS a free* book, Charting The Stock
Market: The Wyckoff Method, all for a price that saves
you $150 off the year-by-year price! *Shipping & han-
dling charges apply for foreign orders.

5 years..........
$
29999
That’s around $5 a month!

Visit www.Traders.com to find out more!

Email: Circ@Traders.com • Phone: 206-938-0570 facebook.com/STOCKSandCOMMODITIES @STOCKSandCOMM