Hidden Divergence Trading in Python.

Creating & Applying the Hidden Divergence Trend-Following Technique.

Sofien Kaabar, CFA

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Divergences are known to be counter trend signals that show an exhaustion in the current trend. There exists a type of divergences that actually signal a trend continuation. The idea of this article is to shine some light on them and try to code them in Python.

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The Stochastic Oscillator

The Stochastic Oscillator is a famous contrarian indicator based on 3 pieces of data, the close, the high, and the low. It is based on the normalization function where the output is a value bound…

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