RSI Divergence

✅ What does the script do?

• It calculates RSI and looks for divergences between RSI and price.
  
• It checks bullish divergence when price makes a lower low, but RSI makes a higher low (potential reversal upwards).
  
• It checks bearish divergence when price makes a higher high, but RSI makes a lower high (potential reversal downwards).
  
• It only considers divergences within a certain bar distance range (user adjustable: minimum and maximum bars between the two points).
  

When a divergence is found, it:

• Draws a line connecting the two points of divergence.
  
• Plots a small triangle on the chart (below bars for bullish, above bars for bearish).
  
• Optionally triggers an alert so you can be notified.
  

It does not repaint because it confirms divergence only after the second pivot forms.


✅ Simple & Informative Description
RSI Divergence Indicator
This indicator helps identify potential bullish and bearish divergences between price and the RSI (Relative Strength Index).

• Bullish divergence:
  Price makes a lower low, but RSI makes a higher low → shown with a green triangle and a green line connecting the lows.
  
• Bearish divergence:
  Price makes a higher high, but RSI makes a lower high → shown with a red triangle and a red line connecting the highs.
  

The script has user settings to:

• Adjust the RSI length.
  
• Set overbought/oversold levels.
  
• Define the minimum and maximum bar distance between divergence points.
  

When a valid divergence is detected, the indicator plots the signal on the chart and can trigger an alert.

This is a visual aid to spot possible reversal areas based on RSI divergence. It doesn’t give trade entries on its own but can be combined with other tools for confirmation