Beta divergence indicator, you can exchange the Price Percentage Oscillator (PPO) for any oscillator. You can play around with the look-back period if you want to use long term divergences.
WARNING:
Because its impossible to make the look-back period of the lowest/highest functions dynamic, the indicator can plot divergences sometimes at places where there are none, however in my experience this does not occur so much. Also it is impossible to plot isolated lines, so its hard to visually see which divergence(s) exactly is(are) being signaled. Once these features become possible I can really refine the indicator.
WARNING:
Because its impossible to make the look-back period of the lowest/highest functions dynamic, the indicator can plot divergences sometimes at places where there are none, however in my experience this does not occur so much. Also it is impossible to plot isolated lines, so its hard to visually see which divergence(s) exactly is(are) being signaled. Once these features become possible I can really refine the indicator.
study(title = "Pekipek's PPO Divergence BETA", shorttitle = "PP's_PPO_DIV") source = close long_term_div = input(true, title="Use long term Divergences?") div_lookback_period = input(55, minval=1, title="Lookback Period") fastLength = input(12, minval=1), slowLength=input(26,minval=1) signalLength=input(9,minval=1) smoother = input(2,minval=1) fastMA = ema(source, fastLength) slowMA = ema(source, slowLength) macd = fastMA - slowMA macd2=(macd/slowMA)*100 d = sma(macd2, smoother) // smoothing PPO bullishPrice = low priceMins = bullishPrice > bullishPrice[1] and bullishPrice[1] < bullishPrice[2] or low[1] == low[2] and low[1] < low and low[1] < low[3] or low[1] == low[2] and low[1] == low[3] and low[1] < low and low[1] < low[4] or low[1] == low[2] and low[1] == low[3] and low[1] and low[1] == low[4] and low[1] < low and low[1] < low[5] // this line identifies bottoms and plateaus in the price oscMins= d > d[1] and d[1] < d[2] // this line identifies bottoms in the PPO BottomPointsInPPO = oscMins bearishPrice = high priceMax = bearishPrice < bearishPrice[1] and bearishPrice[1] > bearishPrice[2] or high[1] == high[2] and high[1] > high and high[1] > high[3] or high[1] == high[2] and high[1] == high[3] and high[1] > high and high[1] > high[4] or high[1] == high[2] and high[1] == high[3] and high[1] and high[1] == high[4] and high[1] > high and high[1] > high[5] // this line identifies tops in the price oscMax = d < d[1] and d[1] > d[2] // this line identifies tops in the PPO TopPointsInPPO = oscMax currenttrough4=valuewhen (oscMins, d[1], 0) // identifies the value of PPO at the most recent BOTTOM in the PPO lasttrough4=valuewhen (oscMins, d[1], 1) // NOT USED identifies the value of PPO at the second most recent BOTTOM in the PPO currenttrough5=valuewhen (oscMax, d[1], 0) // identifies the value of PPO at the most recent TOP in the PPO lasttrough5=valuewhen (oscMax, d[1], 1) // NOT USED identifies the value of PPO at the second most recent TOP in the PPO currenttrough6=valuewhen (priceMins, low[1], 0) // this line identifies the low (price) at the most recent bottom in the Price lasttrough6=valuewhen (priceMins, low[1], 1) // NOT USED this line identifies the low (price) at the second most recent bottom in the Price currenttrough7=valuewhen (priceMax, high[1], 0) // this line identifies the high (price) at the most recent top in the Price lasttrough7=valuewhen (priceMax, high[1], 1) // NOT USED this line identifies the high (price) at the second most recent top in the Price delayedlow = priceMins and barssince(oscMins) < 3 ? low[1] : na delayedhigh = priceMax and barssince(oscMax) < 3 ? high[1] : na // only take tops/bottoms in price when tops/bottoms are less than 5 bars away filter = barssince(priceMins) < 5 ? lowest(currenttrough6, 4) : na filter2 = barssince(priceMax) < 5 ? highest(currenttrough7, 4) : na //delayedbottom/top when oscillator bottom/top is earlier than price bottom/top y11 = valuewhen(oscMins, delayedlow, 0) y12 = valuewhen(oscMax, delayedhigh, 0) // only take tops/bottoms in price when tops/bottoms are less than 5 bars away, since 2nd most recent top/bottom in osc y2=valuewhen(oscMax, filter2, 1) // identifies the highest high in the tops of price with 5 bar lookback period SINCE the SECOND most recent top in PPO y6=valuewhen(oscMins, filter, 1) // identifies the lowest low in the bottoms of price with 5 bar lookback period SINCE the SECOND most recent bottom in PPO long_term_bull_filt = valuewhen(priceMins, lowest(div_lookback_period), 1) long_term_bear_filt = valuewhen(priceMax, highest(div_lookback_period), 1) y3=valuewhen(oscMax, currenttrough5, 0) // identifies the value of PPO in the most recent top of PPO y4=valuewhen(oscMax, currenttrough5, 1) // identifies the value of PPO in the second most recent top of PPO y7=valuewhen(oscMins, currenttrough4, 0) // identifies the value of PPO in the most recent bottom of PPO y8=valuewhen(oscMins, currenttrough4, 1) // identifies the value of PPO in the SECOND most recent bottom of PPO y9=valuewhen(oscMins, currenttrough6, 0) y10=valuewhen(oscMax, currenttrough7, 0) bulldiv= BottomPointsInPPO ? d[1] : na // plots dots at bottoms in the PPO beardiv= TopPointsInPPO ? d[1]: na // plots dots at tops in the PPO i = currenttrough5 < highest(d, div_lookback_period) // long term bearish oscilator divergence i2 = y10 > long_term_bear_filt // long term bearish top divergence i3 = delayedhigh > long_term_bear_filt // long term bearish delayedhigh divergence i4 = currenttrough4 > lowest(d, div_lookback_period) // long term bullish osc divergence i5 = y9 < long_term_bull_filt // long term bullish bottom div i6 = delayedlow < long_term_bull_filt // long term bullish delayedbottom div plot(d, color=white) plot(bulldiv, title = "Tops", color=aqua, style=circles, linewidth=4, offset= -1) plot(beardiv, title = "Bottoms", color=red, style=circles, linewidth=4, offset= -1) plot(y10>y2 and oscMax and y3 < y4 ? d :na, title = "Bearish Divergence2", color=orange, style= circles, linewidth=4) plot(y9<y6 and oscMins and y7 > y8 ? d :na, title = "Bullish Divergence2", color=purple, style=circles, linewidth=4) plot(delayedlow<y6 and y7 > y8 ? d :na, title = "Bullish Divergence2", color=purple, style=circles, linewidth=4) plot(delayedhigh>y2 and y3 < y4 ? d :na, title = "Bearish Divergence2", color=orange, style= circles, linewidth=4) plot(long_term_div and oscMax and i and i2 ? d :na, title = "Bearish Divergence2", color=orange, style= circles, linewidth=4) plot(long_term_div and oscMins and i4 and i5 ? d : na, title = "Bullish Divergence2", color=purple, style=circles, linewidth=4) plot(long_term_div and i and i3 ? d :na, title = "Bearish Divergence2", color=orange, style= circles, linewidth=4) plot(long_term_div and i4 and i6 ? d : na, title = "Bullish Divergence2", color=purple, style=circles, linewidth=4)