RSI Divergence Method█ OVERVIEW
This is a divergence indicator based on Relative Strength Index (RSI).
My attempt to make this indicator updated based on latest pine script features such as type, object and method.
█ FEATURES
1. Color of plot and label is based on contrast color of chart background. Able to customize color from style menu.
2. Big divergence (Regular Divergence) is based on lime / red color.
3. Small divergence (Hidden Divergence) is based on contrast color of chart background.
█ EXAMPLES / USAGES
在腳本中搜尋"rsi divergence"
RSI Divergence multi Timeframe Ultimate
2 x Rsi Level
Show Divergence and Color Bars
Show RSi from multi Timframes with lines and/or Label
Fully configurable
Aertable
RSI Divergence Alerts (BETA)This Script uses the original code from the 'PPO Divergence alerts' by Scarf
Only difference is the RSI is used as the input instead.
Adjust the smoothing setting as required to change sensitivity for alerts.
Feel free to contact me if you would like more info.
RSI Divergence Plotter (2020)How do i use this script?
Firstly, be sure that you have done your research on what divergence is. The oscillator will automatically mark all types of divergence and has coloured 'over bought' and 'oversold' levels at 30 and 70, although reliable, be sure to use other Technical Analysis before entering trades.
Thank you.
RSI Divergence + EMA @DaviddTechVery simple strategy that will look for Divergence on the RSI.
My Strategy for this was mixed with the 55 EMA which you can activate in the settings.
WARNING:
- For purpose educate only - My mission is to debunk fake strategies with code to find THE ONE.
- Plots EMAs and other values on chart.
- This script to change bars colors.
RSI Divergence IndicatorRSI indicator i built to identify divergances quickly with bolling bands... strategy should not be used alone...
USE WITH VWAP, AND GEX LEVELS FOR HIGH SUCCESS RATES.
RSI Divergence Buy/Sell Alertsbuy or sell when bullish or bearish divergence occurs in and over sold or over bought condition
RSI Divergence (based on an EMA)// Was just bored and thought I'd see what happens if RSI was just based on comparing the EMAs instead of confirmed highs / lows.
// Feel free to test and let me know if you find any useful settings (instrument, timeframe, ema).
WaveTrend With Divs & RSI(STOCH) Divs by WeloTradesWaveTrend with Divergences & RSI(STOCH) Divergences by WeloTrades
Overview
The "WaveTrend With Divergences & RSI(STOCH) Divergences" is an advanced Pine Script™ indicator designed for TradingView, offering a multi-dimensional analysis of market conditions. This script integrates several technical indicators—WaveTrend, Money Flow Index (MFI), RSI, and Stochastic RSI—into a cohesive tool that identifies both regular and hidden divergences across these indicators. These divergences can indicate potential market reversals and provide critical trading opportunities.
This indicator is not just a simple combination of popular tools; it offers extensive customization options, organized data presentation, and valuable trading signals that are easy to interpret. Whether you're a day trader or a long-term investor, this script enhances your ability to make informed decisions.
Originality and Usefulness
The originality of this script lies in its integration and the synergy it creates among the indicators used. Rather than merely combining multiple indicators, this script allows them to work together, enhancing each other's strengths. For example, by identifying divergences across WaveTrend, RSI, and Stochastic RSI simultaneously, the script provides multiple layers of confirmation, which reduces the likelihood of false signals and increases the reliability of trading signals.
The usefulness of this script is apparent in its ability to offer a consolidated view of market dynamics. It not only simplifies the analytical process by combining different indicators but also provides deeper insights through its divergence detection features. This comprehensive approach is designed to help traders identify potential market reversals, confirm trends, and ultimately make more informed trading decisions.
How the Components Work Together
1. Cross-Validation of Signals
WaveTrend: This indicator is primarily used to identify overbought and oversold conditions, as well as potential buy and sell signals. WaveTrend's ability to smooth price data and reduce noise makes it a reliable tool for identifying trend reversals.
RSI & Stochastic RSI: These momentum oscillators are used to measure the speed and change of price movements. While RSI identifies general overbought and oversold conditions, Stochastic RSI offers a more granular view by tracking the RSI’s level relative to its high-low range over a period of time. When these indicators align with WaveTrend signals, it adds a layer of confirmation that enhances the reliability of the signals.
Money Flow Index (MFI): This volume-weighted indicator assesses the inflow and outflow of money in an asset, giving insights into buying and selling pressure. By analyzing the MFI alongside WaveTrend and RSI indicators, the script can cross-validate signals, ensuring that buy or sell signals are supported by actual market volume.
Example Bullish scenario:
When a bullish divergence is detected on the RSI and confirmed by a corresponding bullish signal on the WaveTrend, along with an increasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
Example Bearish scenario:
When a bearish divergence is detected on the RSI and confirmed by a corresponding bearish signal on the WaveTrend, along with an decreasing Money Flow Index, the probability of a successful trade setup increases. This cross-validation minimizes the risk of acting on false signals, which might occur when relying on a single indicator.
2. Divergence Detection and Market Reversals
Regular Divergences: Occur when the price action and an indicator (like RSI or WaveTrend) move in opposite directions. Regular bullish divergence signals a potential upward reversal when the price makes a lower low while the indicator makes a higher low. Conversely, regular bearish divergence suggests a downward reversal when the price makes a higher high, but the indicator makes a lower high.
Hidden Divergences: These occur when the price action and indicator move in the same direction, but with different momentum. Hidden bullish divergence suggests the continuation of an uptrend, while hidden bearish divergence suggests the continuation of a downtrend. By detecting these divergences across multiple indicators, the script identifies potential trend reversals or continuations with greater accuracy.
Example: The script might detect a regular bullish divergence on the WaveTrend while simultaneously identifying a hidden bullish divergence on the RSI. This combination suggests that while a trend reversal is possible, the overall market sentiment remains bullish, providing a nuanced view of the market.
A Regular Bullish Divergence Example:
A Hidden Bullish Divergence Example:
A Regular Bearish Divergence Example:
A Hidden Bearish Divergence Example:
3. Trend Strength and Sentiment Analysis
WaveTrend: Measures the strength and direction of the trend. By identifying the extremes of market sentiment (overbought and oversold levels), WaveTrend provides early signals for potential reversals.
Money Flow Index (MFI): Assesses the underlying sentiment by analyzing the flow of money. A rising MFI during an uptrend confirms strong buying pressure, while a falling MFI during a downtrend confirms selling pressure. This helps traders assess whether a trend is likely to continue or reverse.
RSI & Stochastic RSI: Offer a momentum-based perspective on the trend’s strength. High RSI or Stochastic RSI values indicate that the asset may be overbought, suggesting a potential reversal. Conversely, low values indicate oversold conditions, signaling a possible upward reversal.
Example:
During a strong uptrend, the WaveTrend & RSI's might signal overbought conditions, suggesting caution. If the MFI also shows decreasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Example:
During a strong downtrend, the WaveTrend & RSI's might signal oversold conditions, suggesting caution. If the MFI also shows increasing buying pressure and the RSI reaches extreme levels, these indicators together suggest that the trend might be weakening, and a reversal could be imminent.
Conclusion
The "WaveTrend With Divergences & RSI(STOCH) Divergences" script offers a powerful, integrated approach to technical analysis by combining trend, momentum, and sentiment indicators into a single tool. Its unique value lies in the cross-validation of signals, the ability to detect divergences, and the comprehensive view it provides of market conditions. By offering traders multiple layers of analysis and customization options, this script is designed to enhance trading decisions, reduce false signals, and provide clearer insights into market dynamics.
WAVETREND
Display of WaveTrend:
Display of WaveTrend Setting:
WaveTrend Indicator Explanation
The WaveTrend indicator helps identify overbought and oversold conditions, as well as potential buy and sell signals. Its flexibility allows traders to adapt it to various strategies, making it a versatile tool in technical analysis.
WaveTrend Input Settings:
WT MA Source: Default: HLC3
What it is: The data source used for calculating the WaveTrend Moving Average.
What it does: Determines the input data to smooth price action and filter noise.
Example: Using HLC3 (average of High, Low, Close) provides a smoother data representation compared to using just the closing price.
Length (WT MA Length): Default: 3
What it is: The period used to calculate the Moving Average.
What it does: Adjusts the sensitivity of the WaveTrend indicator, where shorter lengths respond more quickly to price changes.
Example: A length of 3 is ideal for short-term analysis, providing quick reactions to price movements.
WT Channel Length & Average: Default: WT Channel Length = 9, Average = 12
What it is: Lengths used to calculate the WaveTrend channel and its average.
What it does: Smooths out the WaveTrend further, reducing false signals by averaging over a set period.
Example: Higher values reduce noise and help in identifying more reliable trends.
Channel: Style, Width, and Color:
What it is: Customization options for the WaveTrend channel's appearance.
What it does: Adjusts how the channel is displayed, including line style, width, and color.
Example: Choosing an area style with a distinct color can make the WaveTrend indicator clearly visible on the chart.
WT Buy & Sell Signals:
What it is: Settings to enable and customize buy and sell signals based on WaveTrend.
What it does: Allows for the display of buy/sell signals and customization of their shapes and colors.
When it gives a Buy Signal: Generated when the WaveTrend line crosses below an oversold level and then rises back, indicating a potential upward price movement.
When it gives a Sell Signal: Triggered when the WaveTrend line crosses above an overbought level and then declines, suggesting a possible downward trend.
Example: The script identifies these signals based on mean reversion principles, where prices tend to revert to the mean after reaching extremes. Traders can use these signals to time their entries and exits effectively.
WAVETREND OVERBOUGTH AND OVERSOLD LEVELS
Display of WaveTrend with Overbought & Oversold Levels:
Display of WaveTrend Overbought & Oversold Levels Settings:
WaveTrend Overbought & Oversold Levels Explanation
WT OB & OS Levels: Default: OB Level 1 = 53, OB Level 2 = 60, OS Level 1 = -53, OS Level 2 = -60
What it is: The default overbought and oversold levels used by the WaveTrend indicator to signal potential market reversals.
What it does: When the WaveTrend crosses above the OB levels, it indicates an overbought condition, potentially signaling a reversal or selling opportunity. Conversely, when it crosses below the OS levels, it indicates an oversold condition, potentially signaling a reversal or buying opportunity.
Example: A trader might use these levels to time entry or exit points, such as selling when the WaveTrend crosses into the overbought zone or buying when it crosses into the oversold zone.
Show OB/OS Levels: Default: True
What it is: Toggle options to show or hide the overbought and oversold levels on your chart.
What it does: When enabled, these levels will be visually represented on your chart, helping you to easily identify when the market reaches these critical thresholds.
Example: Displaying these levels can help you quickly see when the WaveTrend is approaching or has crossed into overbought or oversold territory, allowing for more informed trading decisions.
Line Style, Width, and Color for OB/OS Levels:
What it is: Options to customize the appearance of the OB and OS levels on your chart, including line style (solid, dotted, dashed), line width, and color.
What it does: These settings allow you to adjust how prominently these levels are displayed on your chart, which can help you better visualize and respond to overbought or oversold conditions.
Example: Setting a thicker, dashed line in a contrasting color can make these levels stand out more clearly, aiding in quick visual identification.
Example of Use:
Scenario: A trader wants to identify potential selling points when the market is overbought. They set the OB levels at 53 and 60, choosing a solid, red line style to make these levels clear on their chart. As the WaveTrend crosses above 53, they monitor for further price action, and upon crossing 60, they consider initiating a sell order.
WAVETREND DIVERGENCES
Display of WaveTrend Divergence:
Display of WaveTrend Divergence Setting:
WaveTrend Divergence Indicator Explanation
The WaveTrend Divergence feature helps identify potential reversal points in the market by highlighting divergences between the price and the WaveTrend indicator. Divergences can signal a shift in market momentum, indicating a possible trend reversal. This component allows traders to visualize and customize divergence detection on their charts.
WaveTrend Divergence Input Settings:
Potential Reversal Range: Default: 28
What it is: The number of bars to look back when detecting potential tops and bottoms.
What it does: Sets the range for identifying possible reversal points based on historical data.
Example: A setting of 28 looks back across the last 28 bars to find reversal points, offering a balance between responsiveness and reliability.
Reversal Minimum LVL OB & OS: Default: OB = 35, OS = -35
What it is: The minimum overbought and oversold levels required for detecting potential reversals.
What it does: Adjusts the thresholds that trigger a reversal signal based on the WaveTrend indicator.
Example: A higher OB level reduces the sensitivity to overbought conditions, potentially filtering out false reversal signals.
Lookback Bar Left & Right: Default: Left = 10, Right = 1
What it is: The number of bars to the left and right used to confirm a top or bottom.
What it does: Helps determine the position of peaks and troughs in the price action.
Example: A larger left lookback captures more extended price action before the peak, while a smaller right lookback focuses on the immediate past.
Lookback Range Min & Max: Default: Min = 5, Max = 60
What it is: The minimum and maximum range for the lookback period when identifying divergences.
What it does: Fine-tunes the detection of divergences by controlling the range over which the indicator looks back.
Example: A wider range increases the chances of detecting divergences across different market conditions.
R.Div Minimum LVL OB & OS: Default: OB = 53, OS = -53
What it is: The threshold levels for detecting regular divergences.
What it does: Adjusts the sensitivity of the regular divergence detection.
Example: Higher thresholds make the detection more conservative, identifying only stronger divergence signals.
H.Div Minimum LVL OB & OS: Default: OB = 20, OS = -20
What it is: The threshold levels for detecting hidden divergences.
What it does: Similar to regular divergence settings but for hidden divergences, which can indicate potential reversals that are less obvious.
Example: Lower thresholds make the hidden divergence detection more sensitive, capturing subtler market shifts.
Divergence Label Options:
What it is: Options to display and customize labels for regular and hidden divergences.
What it does: Allows users to visually differentiate between regular and hidden divergences using customizable labels and colors.
Example: Using different colors and symbols for regular (R) and hidden (H) divergences makes it easier to interpret signals on the chart.
Text Size and Color:
What it is: Customization options for the size and color of divergence labels.
What it does: Adjusts the readability and visibility of divergence labels on the chart.
Example: Larger text size may be preferred for charts with a lot of data, ensuring divergence labels stand out clearly.
FAST & SLOW MONEY FLOW INDEX
Display of Fast & Slow Money Flow:
Display of Fast & Slow Money Flow Setting:
Fast Money Flow Indicator Explanation
The Fast Money Flow indicator helps traders identify the flow of money into and out of an asset over a shorter time frame. By tracking the volume-weighted average of price movements, it provides insights into buying and selling pressure in the market, which can be crucial for making timely trading decisions.
Fast Money Flow Input Settings:
Fast Money Flow: Length: Default: 9
What it is: The period used for calculating the Fast Money Flow.
What it does: Determines the sensitivity of the Money Flow calculation. A shorter length makes the indicator more responsive to recent price changes, while a longer length provides a smoother signal.
Example: A length of 9 is suitable for traders looking to capture quick shifts in market sentiment over a short period.
Fast MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, effectively amplifying or reducing the visual impact of the indicator.
Example: A higher multiplier can make the Money Flow more prominent on the chart, aiding in the quick identification of significant money flow changes.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Fast Money Flow plot on the chart.
What it does: Allows you to move the Money Flow plot up or down on the chart to avoid overlap with other indicators.
Example: Adjusting the Y Position can be useful if you have multiple indicators on the chart and need to maintain clarity.
Fast MFI Style, Width, and Color:
What it is: Customization options for how the Fast Money Flow is displayed on the chart.
What it does: Enables you to choose between different plot styles (line or area), set the line width, and select colors for positive and negative money flow.
Example: Using different colors for positive (green) and negative (red) money flow helps to visually distinguish between periods of buying and selling pressure.
Slow Money Flow Indicator Explanation
The Slow Money Flow indicator tracks the flow of money into and out of an asset over a longer time frame. It provides a broader perspective on market sentiment, smoothing out short-term fluctuations and highlighting longer-term trends.
Slow Money Flow Input Settings:
Slow Money Flow: Length: Default: 12
What it is: The period used for calculating the Slow Money Flow.
What it does: A longer period smooths out short-term fluctuations, providing a clearer view of the overall money flow trend.
Example: A length of 12 is often used by traders looking to identify sustained trends rather than short-term volatility.
Slow MFI Area Multiplier: Default: 5
What it is: A multiplier applied to the Slow Money Flow area calculation.
What it does: Adjusts the size of the Money Flow area on the chart, helping to emphasize the indicator’s significance.
Example: Increasing the multiplier can help highlight the Money Flow in markets with less volatile price action.
Y Position (Y Pos): Default: 0
What it is: The vertical position adjustment for the Slow Money Flow plot on the chart.
What it does: Allows for vertical repositioning of the Money Flow plot to maintain chart clarity when used with other indicators.
Example: Adjusting the Y Position ensures that the Slow Money Flow indicator does not overlap with other key indicators on the chart.
Slow MFI Style, Width, and Color:
What it is: Customization options for the visual display of the Slow Money Flow on the chart.
What it does: Allows you to choose the plot style (line or area), set the line width, and select colors to differentiate positive and negative money flow.
Example: Customizing the colors for the Slow Money Flow allows traders to quickly distinguish between buying and selling trends in the market.
RSI
Display of RSI:
Display of RSI Setting:
RSI Indicator Explanation
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It is typically used to identify overbought or oversold conditions in the market, providing traders with potential signals for buying or selling.
RSI Input Settings:
RSI Source: Default: Close
What it is: The data source used for calculating the RSI.
What it does: Determines which price data (e.g., close, open) is used in the RSI calculation, affecting how the indicator reflects market conditions.
Example: Using the closing price is standard practice, as it reflects the final agreed-upon price for a given time period.
MA Type (Moving Average Type): Default: SMA
What it is: The type of moving average applied to the RSI for smoothing purposes.
What it does: Changes the smoothing technique of the RSI, impacting how quickly the indicator responds to price movements.
Example: Using an Exponential Moving Average (EMA) will make the RSI more sensitive to recent price changes compared to a Simple Moving Average (SMA).
RSI Length: Default: 14
What it is: The period over which the RSI is calculated.
What it does: Adjusts the sensitivity of the RSI. A shorter length (e.g., 7) makes the RSI more responsive to recent price changes, while a longer length (e.g., 21) smooths out the indicator, reducing the number of signals.
Example: A 14-period RSI is commonly used for identifying overbought and oversold conditions, providing a balance between sensitivity and reliability.
RSI Plot Style, Width, and Color:
What it is: Options to customize the appearance of the RSI line on the chart.
What it does: Allows you to adjust the visual representation of the RSI, including the line width and color.
Example: Setting a thicker line width and a bright color like yellow can make the RSI more visible on the chart, aiding in quick analysis.
Display of RSI with RSI Moving Average:
RSI Moving Average Explanation
The RSI Moving Average adds a smoothing layer to the RSI, helping to filter out noise and provide clearer signals. It is particularly useful for confirming trend strength and identifying potential reversals.
RSI Moving Average Input Settings:
MA Length: Default: 14
What it is: The period over which the Moving Average is calculated on the RSI.
What it does: Adjusts the smoothing of the RSI, helping to reduce false signals and provide a clearer trend indication.
Example: A 14-period moving average on the RSI can smooth out short-term fluctuations, making it easier to spot genuine overbought or oversold conditions.
MA Plot Style, Width, and Color:
What it is: Customization options for how the RSI Moving Average is displayed on the chart.
What it does: Allows you to adjust the line width and color, helping to differentiate the Moving Average from the main RSI line.
Example: Using a contrasting color for the RSI Moving Average (e.g., magenta) can help it stand out against the main RSI line, making it easier to interpret the indicator.
STOCHASTIC RSI
Display of Stochastic RSI:
Display of Stochastic RSI Setting:
Stochastic RSI Indicator Explanation
The Stochastic RSI (Stoch RSI) is a momentum oscillator that measures the level of the RSI relative to its high-low range over a set period of time. It is used to identify overbought and oversold conditions, providing potential buy and sell signals based on momentum shifts.
Stochastic RSI Input Settings:
Stochastic RSI Length: Default: 14
What it is: The period over which the Stochastic RSI is calculated.
What it does: Adjusts the sensitivity of the Stochastic RSI. A shorter length makes the indicator more responsive to recent price changes, while a longer length smooths out the fluctuations, reducing noise.
Example: A length of 14 is commonly used to identify momentum shifts over a medium-term period, providing a balanced view of potential overbought or oversold conditions.
Display of Stochastic RSI %K Line:
Stochastic RSI %K Line Explanation
The %K line in the Stochastic RSI is the main line that tracks the momentum of the RSI over the chosen period. It is the faster-moving component of the Stochastic RSI, often used to identify entry and exit points.
Stochastic RSI %K Input Settings:
%K Length: Default: 3
What it is: The period used for smoothing the %K line of the Stochastic RSI.
What it does: Smoothing the %K line helps reduce noise and provides a clearer signal for potential market reversals.
Example: A smoothing length of 3 is common, offering a balance between responsiveness and noise reduction, making it easier to spot significant momentum shifts.
%K Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %K line.
What it does: Allows you to adjust the appearance of the %K line on the chart, including line width and color, to fit your visual preferences.
Example: Setting a blue color and a medium width for the %K line makes it stand out clearly on the chart, helping to identify key points of momentum change.
%K Fill Color (Above):
What it is: The fill color that appears above the %K line on the chart.
What it does: Adds visual clarity by shading the area above the %K line, making it easier to interpret the direction and strength of momentum.
Example: Using a light blue fill color above the %K line can help emphasize bullish momentum, making it visually prominent.
Display of Stochastic RSI %D Line:
Stochastic RSI %D Line Explanation
The %D line in the Stochastic RSI is a moving average of the %K line and acts as a signal line. It is slower-moving compared to the %K line and is often used to confirm signals or identify potential reversals when it crosses the %K line.
Stochastic RSI %D Input Settings:
%D Length: Default: 3
What it is: The period used for smoothing the %D line of the Stochastic RSI.
What it does: Smooths out the %D line, making it less sensitive to short-term fluctuations and more reliable for identifying significant market signals.
Example: A length of 3 is often used to provide a smoothed signal line that can help confirm trends or reversals indicated by the %K line.
%D Plot Style, Width, and Color:
What it is: Customization options for the visual representation of the %D line.
What it does: Allows you to adjust the appearance of the %D line on the chart, including line width and color, to match your preferences.
Example: Setting an orange color and a thicker line width for the %D line can help differentiate it from the %K line, making crossover points easier to spot.
%D Fill Color (Below):
What it is: The fill color that appears below the %D line on the chart.
What it does: Adds visual clarity by shading the area below the %D line, making it easier to interpret bearish momentum.
Example: Using a light orange fill color below the %D line can highlight bearish conditions, making it visually easier to identify.
RSI & STOCHASTIC RSI OVERBOUGHT AND OVERSOLD LEVELS
Display of RSI & Stochastic with Overbought & Oversold Levels:
Display of RSI & Stochastic Overbought & Oversold Settings:
RSI & Stochastic Overbought & Oversold Levels Explanation
The Overbought (OB) and Oversold (OS) levels for RSI and Stochastic RSI indicators are key thresholds that help traders identify potential reversal points in the market. These levels are used to determine when an asset is likely overbought or oversold, which can signal a potential trend reversal.
RSI & Stochastic Overbought & Oversold Input Settings:
RSI & Stochastic Level 1 Overbought (OB) & Oversold (OS): Default: OB Level = 170, OS Level = 130
What it is: The first set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: When the RSI or Stochastic RSI crosses above the overbought level, it suggests that the asset might be overbought, potentially signaling a sell opportunity. Conversely, when these indicators drop below the oversold level, it suggests the asset might be oversold, potentially signaling a buy opportunity.
Example: If the RSI crosses above 170, traders might look for signs of a potential trend reversal to the downside, while a cross below 130 might indicate a reversal to the upside.
RSI & Stochastic Level 2 Overbought (OB) & Oversold (OS): Default: OB Level = 180, OS Level = 120
What it is: The second set of thresholds for determining overbought and oversold conditions for both RSI and Stochastic RSI indicators.
What it does: These levels provide an additional set of reference points, allowing traders to differentiate between varying degrees of overbought and oversold conditions, potentially leading to more refined trading decisions.
Example: When the RSI crosses above 180, it might indicate an extreme overbought condition, which could be a stronger signal for a sell, while a cross below 120 might indicate an extreme oversold condition, which could be a stronger signal for a buy.
RSI & Stochastic Overbought (OB) Band Customization:
OB Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first overbought band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first overbought band, enhancing its visibility on the chart.
Example: A dashed red line with medium width can clearly indicate the first overbought level, helping traders quickly identify when this threshold is crossed.
OB Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second overbought band on the chart.
What it does: Allows you to set the line width, style, and color for the second overbought band, providing a clear distinction from the first band.
Example: A dashed red line with a slightly thicker width can represent a more significant overbought level, making it easier to differentiate from the first level.
RSI & Stochastic Oversold (OS) Band Customization:
OS Level 1: Width, Style, and Color:
What it is: Customization options for the visual appearance of the first oversold band on the chart.
What it does: Allows you to set the line width, style (solid, dotted, dashed), and color for the first oversold band, making it visually prominent.
Example: A dashed green line with medium width can highlight the first oversold level, helping traders identify potential buying opportunities.
OS Level 2: Width, Style, and Color:
What it is: Customization options for the visual appearance of the second oversold band on the chart.
What it does: Allows you to set the line width, style, and color for the second oversold band, providing an additional visual cue for extreme oversold conditions.
Example: A dashed green line with a thicker width can represent a more significant oversold level, offering a stronger visual cue for potential buying opportunities.
RSI DIVERGENCES
Display of RSI Divergence Labels:
Display of RSI Divergence Settings:
RSI Divergence Lookback Explanation
The RSI Divergence settings allow traders to customize the parameters for detecting divergences between the RSI (Relative Strength Index) and price action. Divergences occur when the price moves in the opposite direction to the RSI, potentially signaling a trend reversal. These settings help refine the accuracy of divergence detection by adjusting the lookback period and range. ( NOTE: This setting only imply to the RSI. This doesn't effect the STOCHASTIC RSI. )
RSI Divergence Lookback Input Settings:
Lookback Left: Default: 10
What it is: The number of bars to look back from the current bar to detect a potential divergence.
What it does: Defines the left-side lookback period for identifying pivot points in the RSI, which are used to spot divergences. A longer lookback period may capture more significant trends but could also miss shorter-term divergences.
Example: A setting of 10 bars means the script will consider pivot points up to 10 bars before the current bar to check for divergence patterns.
Lookback Right: Default: 1
What it is: The number of bars to look forward from the current bar to complete the divergence pattern.
What it does: Defines the right-side lookback period for confirming a potential divergence. This setting helps ensure that the identified divergence is valid by allowing the script to check subsequent bars for confirmation.
Example: A setting of 1 bar means the script will look at the next bar to confirm the divergence pattern, ensuring that the signal is reliable.
Lookback Range Min: Default: 5
What it is: The minimum range of bars required to detect a valid divergence.
What it does: Sets a lower bound on the range of bars considered for divergence detection. A lower minimum range might capture more frequent but possibly less significant divergences.
Example: Setting the minimum range to 5 ensures that only divergences spanning at least 5 bars are considered, filtering out very short-term patterns.
Lookback Range Max: Default: 60
What it is: The maximum range of bars within which a divergence can be detected.
What it does: Sets an upper bound on the range of bars considered for divergence detection. A larger maximum range might capture more significant divergences but could also include less relevant long-term patterns.
Example: Setting the maximum range to 60 bars allows the script to detect divergences over a longer timeframe, capturing more extended divergence patterns that could indicate major trend reversals.
RSI Divergence Explanation
RSI divergences occur when the RSI indicator and price action move in opposite directions, signaling potential trend reversals. This section of the settings allows traders to customize the appearance and detection of both regular and hidden bullish and bearish divergences.
RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a green label color and a distinct line width makes bullish divergences easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing a red label color and a specific line width makes bearish divergences clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer green color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted red color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
STOCHASTIC DIVERGENCES
Display of Stochastic RSI Divergence Labels:
Display of Stochastic RSI Divergence Settings:
Stochastic RSI Divergence Explanation
Stochastic RSI divergences occur when the Stochastic RSI indicator and price action move in opposite directions, signaling potential trend reversals. These settings allow traders to customize the detection and visual representation of both regular and hidden bullish and bearish divergences in the Stochastic RSI.
Stochastic RSI Divergence Input Settings:
R. Bullish Div Label: Default: True
What it is: An option to display labels for regular bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bullish divergences, where the price makes a lower low while the Stochastic RSI makes a higher low, indicating a potential upward reversal.
Example: A trader might use this to spot buying opportunities in a downtrend when a bullish divergence in the Stochastic RSI suggests the trend may be reversing.
Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Selecting a blue label color and a distinct line width makes bullish divergences in the Stochastic RSI easily recognizable on your chart.
R. Bearish Div Label: Default: True
What it is: An option to display labels for regular bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark regular bearish divergences, where the price makes a higher high while the Stochastic RSI makes a lower high, indicating a potential downward reversal.
Example: A trader might use this to spot selling opportunities in an uptrend when a bearish divergence in the Stochastic RSI suggests the trend may be reversing.
Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of regular bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: Choosing an orange label color and a specific line width makes bearish divergences in the Stochastic RSI clearly stand out on your chart.
H. Bullish Div Label: Default: False
What it is: An option to display labels for hidden bullish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bullish divergences, where the price makes a higher low while the Stochastic RSI makes a lower low, indicating potential continuation of an uptrend.
Example: A trader might use this to confirm an existing uptrend when a hidden bullish divergence in the Stochastic RSI signals continued buying strength.
Hidden Bullish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bullish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A softer blue color with a thinner line width might be chosen to subtly indicate hidden bullish divergences, keeping the chart clean while providing useful information.
H. Bearish Div Label: Default: False
What it is: An option to display labels for hidden bearish divergences in the Stochastic RSI.
What it does: Enables or disables the visibility of labels that mark hidden bearish divergences, where the price makes a lower high while the Stochastic RSI makes a higher high, indicating potential continuation of a downtrend.
Example: A trader might use this to confirm an existing downtrend when a hidden bearish divergence in the Stochastic RSI signals continued selling pressure.
Hidden Bearish Label Color, Line Width, and Line Color:
What it is: Settings to customize the appearance of hidden bearish divergence labels in the Stochastic RSI.
What it does: Allows you to choose the color of the labels, adjust the width of the divergence lines, and select the color for these lines.
Example: A muted orange color with a thinner line width might be selected to indicate hidden bearish divergences without overwhelming the chart.
Divergence Text Size and Color: Default: S (Small)
What it is: Settings to adjust the size and color of text labels for Stochastic RSI divergences.
What it does: Allows you to customize the size and color of text labels that display the divergence information on the chart.
Example: Choosing a small text size with a bright white color can make divergence labels easily readable without taking up too much space on the chart.
Alert System:
Custom Alerts for Divergences and Reversals:
What it is: The script includes customizable alert conditions to notify you of detected divergences or potential reversals based on WaveTrend, RSI, and Stochastic RSI.
What it does: Helps you stay informed of key market movements without constantly monitoring the charts, enabling timely decisions.
Example: Setting an alert for regular bearish divergence on the WaveTrend could notify you of a potential sell opportunity as soon as it is detected.
How to Use Alerts:
Set up custom alerts in TradingView based on these conditions to be notified of potential trading opportunities. Alerts are triggered when the indicator detects conditions that match the selected criteria, such as divergences or potential reversals.
By following the detailed guidelines and examples above, you can effectively use and customize this powerful indicator to suit your trading strategy.
For further understanding and customization, refer to the input settings within the script and adjust them to match your trading style and preferences.
How Components Work Together
Synergy and Cross-Validation: The indicator combines multiple layers of analysis to validate trading signals. For example, a WaveTrend buy signal that coincides with a bullish divergence in RSI and positive fast money flow is likely to be more reliable than any single indicator’s signal. This cross-validation reduces the likelihood of false signals and enhances decision-making.
Comprehensive Market Analysis: Each component plays a role in analyzing different aspects of the market. WaveTrend focuses on trend strength, Money Flow indicators assess market sentiment, while RSI and Stochastic RSI offer detailed views of price momentum and potential reversals.
Ideal For
Traders who require a reliable, multifaceted tool for detecting market trends and reversals.
Investors seeking a deeper understanding of market dynamics across different timeframes and conditions, whether in forex, equities, or cryptocurrency markets.
This script is designed to provide a comprehensive tool for technical analysis, combining multiple indicators and divergence detection into one versatile and customizable script. It is especially useful for traders who want to monitor various indicators simultaneously and look for convergence or divergence signals across different technical tools.
Acknowledgements
Special thanks to these amazing creators for inspiration and their creations:
I want to thank these amazing creators for creating there amazing indicators , that inspired me and also gave me a head start by making this indicator! Without their amazing indicators it wouldn't be possible!
vumanchu: VuManChu Cipher B Divergences.
MisterMoTa: RSI + Divergences + Alerts .
DevLucem: Plain Stochastic Divergence.
Note
This indicator is designed to be a powerful tool in your trading arsenal. However , it is essential to backtest and adjust the settings according to your trading strategy before applying it to live trading . If you have any questions or need further assistance, feel free to reach out.
[Rygel] RSI with divergences and alertsThis indicator is a reliable, exhaustive, instant, simple divergence detector for the RSI oscillator.
I've struggled for months to find a RSI divergence indicator I can rely on, I've tinkered with the ones I found and never was satisfied by the final result. For all of them important divergences were not shown, for some divergences was shown too late, for others divergence lines was not drawn, some even shown some strange exotic divergences... I played will all the parameters and something was always wrong or missing at the end.
So I finally decided to write my own divergence algorithm and to create my own indicator. After a few attempts, here's the result.
At first. Please find below a quick comparison of this indicator with some of the most popular RSI divergence indicators on TradingView. I've hidden their names as it's not my intention to show them in a bad light. These indicators are great and some of you may even find them better than this one, they were just not what I was looking for.
You will most likely notice all of them are missing divergences but not always the same. You'll have to combine all of them to get (almost) all the divergences.
When I built this indicator, my objectives were to create one that is :
Reliable. I didn't want to have to double-check an indicator to make sure it's doing what I expect it to do. I want to be able to look at it for one second and know I can rely on it.
Exhaustive. I didn't want to have to rely on multiple indicators to be sure I'm not missing a divergence.
Instant. I wanted the divergences to be shown as soon as soon as they form and not after a pivot is confirmed. For some indicator, when the divergence is displayed, it's already too late to act on it.
Simple. I wanted my indicator to be clean, readable and not visually aggressive. The main objective of this indicator is to show divergences and I didn't want to visually overload it with unrequired information.
I wanted my indicator to be a simple as possible, nonetheless you'll find a few parameters to tinker with. Many of them will need no explanation but here's the list.
Show regular divergences : enabled by default.
Show hidden divergences : disabled by default for readability. I try to keep the indicator as clean as possible by default.
Bullish regular divergence color : no explanation needed I suppose.
Bullish hidden divergence color : same.
Bearish regular divergence color : ditto.
Bearish hidden divergence color : uhh.
Show overbought and oversell backgrounds : when RSI is oversold or overbought, the background color changes to red or green. The indicator uses two levels of oversold/overbought. When the RSI is strongly oversold/overbought the background color gets brighter. You can configure these levels in the advanced parameters.
Advanced parameters:
RSI source: "close" by default.
RSI length: 14 by default.
Show divergences before pivot confirmation : enabled by default. Divergences will appear as soon as possible, before the pivot is confirmed by another candlestick. Unconfirmed divergences will appear as dashed lines then disappear if not confirmed or turn to solid lines if confirmed. This may create false positives with alerts as the divergence may disappear.
Minimum bars to check: 5 by default. As this indicator detects absolutely all the divergences, some may be insignificant and it may become unreadable without some filtering. If you want to see absolutely all the divergences, you may lower this value. Please note TradingView limits to 50 how many lines are displayed at the same time on an indicator. So when you display more divergences, some in the past disappear. It's not usually an issue but if you scroll back in time, divergences will stop to show at one point in the past.
Maximum bars to check: 50 by default. Divergences may go far in the past, this parameters limit how old a divergence may be. You can higher it to show more divergences.
Use limits for divergences: enabled by default. Don't show divergences when they are above or below a threshold. Another filtering options to make sure only relevant divergences are shown.
Minimum value for bearish divergence: 40 by default.
Maximum value for bullish divergence: 60 by default.
Show pivots: disabled by default. Show the pivot points used for divergence detections.
Oversold level: 30 by default. A red background is shown when the indicator goes below this level.
Overbought level: 70 by default. A green background is shown when the indicator goes above this level.
Strongly oversold level: 20 by default. A brighter red background is shown when the indicator goes below this level.
Strongly overbought level: 80 by default. A brighter green background is shown when the indicator goes above this level.
Show moving average: disabled by default. Add a moving average to the indicator.
Moving average type: SMA by default. You may choose between Bollinger Bands, EMA, SMA, SMMA (RMA), VWMA and WMA.
Moving average length: 14 by default.
Bollinger Band standard deviation 2 by default.
This indicator has the following alerts:
Any divergence
Bearish divergence
Bullish divergence
Regular bearish divergence
Regular bullish divergence
Hidden bearish divergence
Hidden bullish divergence
Please note TradingView limits for performance reason to 50 the number of lines you can display on an indicator at the same time. So when you scroll back in time, at one point divergences will stop to show. If you want to see divergences far in the past, you may need to use the replay feature or to configure stronger filtering settings.
I hope you'll enjoy this indicator as much as I do! :)
Feel free to comment if you experience a bug or if an important feature is missing for you. (Please note the core of this indicator is divergence detection, I want to keep it simple so I will probably not add many unrelated features to it.)
Integrated Reversal & Divergence DetectionThe Integrated Reversal & Divergence Detection indicator (IntgRevDiv) combines two powerful technical analysis systems into one comprehensive tool:
Advanced Reversal Detection System: Identifies potential market reversals using volume analysis, RSI divergence, and smart money techniques.
Divergence Indicator System: Detects regular and hidden divergences using multiple technical indicators and fractal patterns.
This integration provides confirmation from multiple analysis methods, resulting in higher quality trading signals.
Divergence Lines
When System B detects divergences, it draws lines connecting the relevant price pivots:
Green Lines: Connect bullish divergence pivot points.
Red Lines: Connect bearish divergence pivot points.
Information Tables
The indicator displays two information tables:
System A Table (Bottom Right):
Current signal status (BUY/SELL/NEUTRAL)
Volume, RSI, and SMT divergence status.
Composite signal information.
Divergence Table (Top Right):
Divergence existence indicators (+/-).
Consecutive divergence count.
Divergence quality rating.
Phase change indicators.
This system analyzes multiple factors to detect potential market reversals:
Volume Delta Analysis:
Calculates the difference between buying and selling volume.
Detects divergence between price action and volume.
When price increases but volume decreases, it may signal weakness.
RSI Divergence Detection:
Regular Divergence: Price makes a higher high but RSI makes a lower high (bearish) or price makes a lower low but RSI makes a higher low (bullish).
Hidden Divergence: Price makes a lower high but RSI makes a higher high (bearish) or price makes a higher low but RSI makes a lower low (bullish).
Smart Money Technique (SMT):
Analyzes correlation between the current instrument and a reference symbol.
Detects divergence in the correlation that may signal institutional activity.
Balance Range & Momentum Detection:
Identifies periods of price balance before breakouts.
Detects rapid price movements that may indicate reversals.
This system also focuses exclusively on detecting divergences using:
Multiple Technical Indicators:
MACD: Momentum and trend-following indicator.
Awesome Oscillator (AO): Momentum indicator.
RSI: Oscillator showing overbought/oversold conditions.
Fractal Pattern Detection:
Identifies swing highs and lows using fractals.
Uses these pivot points to detect divergences.
Phase Change Monitoring:
Detects when the histogram switches from positive to negative or vice versa.
Provides additional confirmation of trend changes.
Consecutive Divergence Tracking:
Counts consecutive bullish/bearish divergences.
Assigns quality ratings based on the count:
1 divergence: "Normal Dive".
2 divergences: "Good Dive".
3+ divergences: "Strong Dive".
Multi-Timeframe Analysis:
Apply the indicator to multiple timeframes.
Look for alignment of signals across timeframes.
Use longer timeframes for trend direction, shorter for entry timing.
Signal Filtering Based on Quality:
For higher probability trades, only take signals when:
Divergence quality shows "Good" or "Strong".
Phase change indicators show "+" in the direction of your trade.
Multiple divergence types (Volume, RSI, SMT) show agreement.
Combining with Support/Resistance:
Use the indicator's signals near key support/resistance levels.
Buy signals near support areas have higher probability.
Sell signals near resistance areas have higher probability.
Market Regime Adaptation:
I n trending markets: Focus on hidden divergences and SMT.
In ranging markets: Focus on regular divergences and RSI.
In high volatility: Increase the Volume Delta Threshold.
In low volatility: Decrease the Fractal Periods.
Signal Combination Logic Selection:
For fewer but higher quality signals: Use "Consensus" mode.
For more trading opportunities: Use "Enhanced" mode.
To emphasize price action reversals: Use "System A Priority".
To emphasize technical divergences: Use "System B Priority".
Market-Specific Adjustments:
Stocks/Indices: Focus on Volume Delta and RSI divergence.
Forex: Emphasize SMT and RSI divergence.
Crypto: Balance all three with slightly higher weight on Volume.
Commodities: Focus on MACD for divergence detection.
This indicator provides multiple layers of market analysis through its integrated approach. By understanding each component's function and how they work together, you can develop a nuanced trading strategy that takes advantage of high-probability reversal and divergence setups across various market conditions.
Black RSI (Pro Suite)Black RSI (Pro Suite) is combination of RSI (Relative Strength Index), Volume RSI, Heikin Ashi RSI & other multi Oscillators with multi features into one indicator, features like (Quad Divergences, Multi Time Frame RSI, MTF RSI Panel, Oscillator Support/Resistance/Wedges/Trendlines, Oscillator Moving Average/BBs, Smooth RSI, RSI Price Estimator, Oscillator Over bought/sold Bars, Osc OB/OS Zones, Osc OB/OS Highlights, additionally Black RSI indicator is flexible & completely customizable).
Indicator goal: I have tried my best to organized RSI & other suitable oscillators and oscillator useful tools into one simple and free indicator for Tradingview users (specifically for Tradingview 'basic' subscription users). suggestions are always welcome. please give feedback & appreciate if you like my work.
Black RSI Indicator Features Summary:
Black RSI indicator includes many features mainly relevant to RSI and other Oscillators, these are briefly highlighted below:
Black RSI Dashboard
Multi Oscillators: Choose between multiple oscillators. All oscillators settings are customizable.
Multi Symbol: Multi Symbol Support, applicable on all oscillators
RSI (Relative Strength Index)
VRSI (Volume Relative Strength Index)
HA RSI (Heikin Ashi Relative Strength Index)
OBV (On Balance Volume)
CVD (Comulative Volume Delta)
MFI (Money Flow Index)
UO (Ultimate Oscillator)
MOM (Momentum Oscillator)
ATR (Average True Range)
Stoch (Stochastic Oscillator)
Stoch RSI (Stochastic RSI)
Oscillator Primary Tools ◢
Oscillator Moving Average/Bollinger Bands
Smooth RSI
Multi Timeframe RSI
Multi Timeframe RSI Panel
RSI Price Estimator
Oscillator Support/Resistance/Wedges/Trendlines
Oscillator Moving Average/BBs: Shows Moving Average for selected oscillator.
Smooth Smooth: Smooths out RSI
Multi Timeframe RSI: Displays Multiple Time Frame/Multiple Symbol RSI and converts it and shows it as it is in current time frame without effecting Primary RSI
Multi Timeframe RSI Panel: Displays Multiple Time Frame/Multiple Symbol RSI values of user input specific timeframes in compact panel (max 8 Time frames)
RSI Price Estimator: Calculates RSI estimate price values of 3 different user specific RSI input levels, RSI x MA cross price and RSI future value of user specific price input level.
Oscillator Support/Resistance/Wedges/Trendlines: Draws Trendlines, Wedges and Support & Resistance lines on selected oscillator
Oscillator Quad Divergence ◢
1st Oscillator Divergence: Traditional divergence indicator with enhancements & customization
2nd Oscillator Divergence: Traditional divergence indicator with enhancements & customization
3rd Oscillator Divergence: Advanced Divergence indicator with source selection, RSI/Price threshold, potential divergences & customization
4th Oscillator Divergence: Pivots divergence indicator with flexible pivots selection & customization
Regular bullish divergences are indicated when price is forming lower lows while an oscillator shows higher lows.
Regular bearish divergences are indicated when price is forming higher highs while an oscillator shows lower highs.
While regular divergences indicate trend reversals, hidden divergences indicate a trend continuation.
When the price is making higher lows and the oscillator is showing lower lows, we speak of a bullish hidden divergence.
When the price is making lower highs and the oscillator shows higher highs, it's a bearish hidden divergence.
Oscillator Secondary Tools ◢
Oscillator HH/LL pivots
Osc OB/OS Color Bars
Osc OB/OS Zones
Osc OB/OS Highlights
Background
Oscillator HH/LL pivots: Shows HH/LL pivot points on selected oscillator
Osc OB/OS Color Bars: Plots color chart bars based on RSI, MFI, Stochastic, Stochastic RSI or combine overbought/oversold conditions
Osc OB/OS Zones: Plots Osc OB/OS Zones with user input levels
Osc OB/OS Highlights: Highlight oscillator OB/OS background area
Background: background color customization
+ Primary RSI Settings ▾
- Primary RSI Length: User input RSI Length value
- Primary RSI Source: User RSI Source selection
- RSI Overbought Threshold: Allows the user to set the RSI overbought threshold value. This Overbought Threshold value will also be applied on "RSI Divergence overbought condition", "RSI OB Color Bars" and "Primary RSI Color Schemes
- RSI Oversold Threshold: Allows the user to set the RSI oversold threshold value. The lower band (oversold line) of RSI. This Oversold Threshold value will also be applied on "RSI Divergence oversold condition", "RSI OS Color Bars" and "Primary RSI Color Schemes
- RSI Middle Band: Allows the user to set the RSI middle band value. This value will also applied to "Center Line" color scheme from "Primary RSI Color Schemes" drop menu
- Primary RSI Colors:
Range color specifies a gradient of colors from the overbought to the oversold threshold user inputs from "Primary RSI" section. Color interpolation also a gradient but smoother than Range color. Center Line is similar but is not a gradient, linked to Middle Band ("Primary RSI" section) and changes color with RSI Middle Band. Traditional is simple with Overbought and Oversold colors change.
- RSI Bullish Band: Allows the user to plot extra/optional RSI band on RSI Oscillator (Note: it will not be plotted if "OB/OS Zone only" enabled from "OB/OS Zone Settings" section)
- RSI Bearish Band: Allows the user to plot extra/optional RSI band on RSI Oscillator (Note: it will not be plotted if "OB/OS Zone only" enabled from "OB/OS Zone Settings" section)
+ Primary RSI Smooth Settings ▾
- Smooth Moving Average Type: User selected Smooth MA type. With RSI Smooth enabled, will also effect all RSI Divergences detection (all divergences will be plot according to "Smoothed RSI line")
- Smooth Moving Average Length: User input Smooth MA length value
+ Oscillator Moving Average Settings ▾
- Osc Moving Average Colors: Allows user to select Bullish/Bearish colors of Oscillator Moving Average
- Osc Moving Average Type: Allows user to select Oscillator MA Type
- Osc Moving Average Length: User input Oscillator MA length value
- Osc Moving Average Thickness: User input Oscillator MA thickness
- BB StdDev: user input Bollinger Bands standard deviation value
+ Stochastic Oscillator Settings ▾
- Same as Traditional/Default indicator
+ Stochastic RSI Oscillator Settings ▾
- Same as Traditional/Default indicator
+ Money Index Flow Settings ▾
- Same as Traditional/Default indicator
+ Ultimate Oscillator Settings ▾
- Same as Traditional/Default indicator
+ Momentum Oscillator Settings ▾
- Same as Traditional/Default indicator
+ Average True Range Settings ▾
- Same as Traditional/Default indicator
+ Multi Timeframe RSI Settings ▾
- MTF RSI Time Frame: Allows user to select MTF RSI Time Frame
- MTF RSI Symbol: Allows user to select MTF RSI Time Symbol
- MTF RSI Length: User input MTF RSI length value
- MTF RSI Source: User selected MTF RSI source
- MTF RSI Line Width: User input MTF RSI line thickness value
- Number of Bars for MTF RSI plot
- MTF RSI Color > OB color > OS color : Allows user to select MTF RSI color with additionally Overbought/Oversold colors
+ MTF RSI Panel Settings ▾
- Select MTF RSI Type: If "Primary RSI" or "Volume RSI" selected MTF RSI Panel will show output values based on "Primary RSI" or "Volume RSI" parameters e.g. source, length, but without smooth.
- MTF RSI Panel Symbol: Allows user to select MTF RSI Panel symbol, leave symbol blank or uncheck "checkbox" for current chart symbol
- Show Symbol in Panel: Shows symbol ticker(current or user selected) in MTF RSI Panel
- Panel Background: Allows user to select MTF RSI Panel Background (enable/disable) and Background color selection
- TF1: MTF RSI Timeframe 1 user selection
- TF2: MTF RSI Timeframe 2 user selection
- TF3: MTF RSI Timeframe 3 user selection
- TF4: MTF RSI Timeframe 4 user selection
- TF5: MTF RSI Timeframe 5 user selection
- TF6: MTF RSI Timeframe 6 user selection
- TF7: MTF RSI Timeframe 7 user selection
- TF8: MTF RSI Timeframe 8 user selection
- Panel Top Offset: MTF RSI Panel offset input value
- Position: MTF RSI Panel position selection
- Text Size: MTF RSI Panel text size selection
- Bullish Colors: MTF RSI Panel bullish color selection. (Bullish colors range RSI >75, <75 to >65, <65 to >55)
- Bearish Colors: MTF RSI Panel bearish color selection. (Bearish colors range RSI <45 to >35, <35 to >25, <25)
+ RSI Price Estimator Settings ▾
- Price 1: User input value for RSI future price
- Price 2: User input value for RSI future price
- Price 3: User input value for RSI future price
- Panel Position Offset: User input value for panel position offset
- Price Decimals: User input value for output price decimals in panel
- Show RSI/OscMA cross Price: Enable/Disable RSIxOscillator MA cross future price
- Show RSI Level for Input Price: User input price for future RSI level
- Invisible Background: Enable/Disable Background
Auto Text Color > Auto color change of Panel text according to Dark/Light chart theme
+ Oscillator Support/Resistance Settings ▾
- Show Support line: Allows user to Enable/Disable Oscillator support line
Color > Auto Color: Auto color change of support line according to Dark/Light chart theme
- Show Resistance line: Allows user to Enable/Disable Oscillator resistance line
Color > Auto Color: Auto color display of resistance line according to Dark/Light chart theme
- Lookback lows/highs: User input of Lookback lows/highs value
- Distance threshold: Distance from the line to the low
- Line touch points: Number of points that have to be around the line
- Low/High left bars: User input of Low/High left bars value
- Low/High right bars: User input of Low/High right bars value
- Line style: User selection of line style
- Line thickness: User input of line thickness value
+ Oscillator 1st Divergence Settings ▾
- Divergence Source: User selection of divergence source. "High/Low" (high/low of oscillator/price divergence detection), "Close" (close of oscillator/price divergence detection) and "Both" (Both Close + High/Low of oscillator/price divergence detection). (Note: Traditional Divergence indicator default source is "High/Low")
- Pivot Lookback Right: How many candle to compare on the right side of a candle when deciding whether it is a pivot. The lower the number is, the earlier pivots (and therefore divergences) will be signaled, but the quality of those detections could be lower.
- Pivot Lookback Left: How many candle to compare on the left side of a candle when deciding whether it is a pivot. The lower the number is, the earlier pivots (and therefore divergences) will be signaled, but the quality of those detections could be lower.
- Divergence Max Length (Bars): The maximum length of a divergence (number of bars). If a detected divergence is longer than this, it will be discarded
- Divergence Min Length (Bars): The minimum length of a divergence (number of bars). If a detected divergence is shorter than this, it will be discarded
- Show Divergence as:
- Line Thickness: User input divergence line thickness value
- Label Transparency: it could reduce labels mess on oscillator line, input "100" for label text only without label background
- Labels Text Color: User label text color selection
Auto Text Color > Auto color change of label text according to Dark/Light chart theme
- Bull Divergences: Enable/Disable of Bull divergences
> Color: User selection of Bull divergence color
> Oversold only: It will show Regular Bullish RSI divergences in oversold zone only, RSI oversold threshold can be configure in "Primary RSI Settings" section.
- Bear Divergences: Enable/Disable of Bear divergences
> Color: User selection of Bear divergence color
> Overbought only: It will show Regular Bearish RSI divergences in overbought zone only, RSI overbought threshold can be configure in "Primary RSI Settings" section.
- Hidden Bull Div: Enable/Disable of Hidden Bull divergences
> Color: User selection of Hidden Bull divergence color
- Hidden Bear Div: Enable/Disable of Hidden Bear divergences
> Color: User selection of Hidden Bear divergence color
+ Oscillator 2nd Divergence Settings ▾
- Same as Oscillator 1st Divergence Settings
+ Oscillator 3rd Divergence Settings ▾
- Divergence source: User selection of divergence source . "oscillator" (divergence detection with high/low or close of selected oscillator), "price" (divergence detection with high/low or close of price)
- Bull price source: User selection of Bull price source. Bull price source: "Low" (low of price divergence detection), "Close" (close of price divergence detection) (linked to "price" in "Divergence source")
- Bear price source: User selection of Bear price source. Bear price source: "High" (high of price divergence detection), "Close" (close of price divergence detection) (linked to "price" in "Divergence source")
- Low/High left bars: How many candle to compare on the left side of a candle when deciding whether it is a pivot. The lower the number is, the earlier pivots (and therefore divergences) will be signaled, but the quality of those detections could be lower.
- Low/High right bars: How many candle to compare on the right side of a candle when deciding whether it is a pivot. The lower the number is, the earlier pivots (and therefore divergences) will be signaled, but the quality of those detections could be lower.
- Maximum lookback bars: The maximum length of a divergence (number of bars). If a detected divergence is longer than this, it will be discarded.
- Price threshold: User selection of Price threshold, higher values more lines
- RSI threshold: User selection of RSI threshold, higher values more lines
- Show Lows: Displays lows of RSI
- Show Highs: Displays highs of RSI
- Show Divergence as:
- Line Style:
- Line thickness: User input divergence line thickness value
- Label Transparency: it could reduce labels mess on oscillator line, input "100" for label text only without label background
- Labels Text Color: User label text color selection
Auto Text Color > Auto color change of label text according to Dark/Light chart theme
- Bull Divergences: Enable/Disable of Bull divergences
> Color: User selection of Bull divergence color
> Potential Bull: It will plot potential regular bull divergence with dotted line.
- Bear Divergences: Enable/Disable of Bear divergences
> Color: User selection of Bear divergence color
> Potential Bear: It will plot potential regular bear divergence with dotted line.
- Hidden Bull Div: Enable/Disable of Hidden Bull divergences
> Color: User selection of Hidden Bull divergence color
> Potential H.Bull: It will plot potential hidden bull divergence with dotted line.
- Hidden Bear Div: Enable/Disable of Hidden Bear divergences
> Color: User selection of Hidden Bear divergence color
> Hidden Bear divergence: It will plot potential hidden bear divergence with dotted line.
> Regular Bull oversold only: It will show Regular Bullish RSI divergences in oversold zone only, RSI oversold threshold can be configure in "Primary RSI Settings" section.
> Regular Bear overbought only: It will show Regular Bearish RSI divergences in overbought zone only, RSI overbought threshold can be configure in "Primary RSI Settings" section.
+ Oscillator 4th Divergences Settings ▾
- Upper Length: User pivot input value of draw upper divergence line From
- To Pivot:
- Lower Length: User pivot input value of draw lower divergence line From
- To Pivot:
- Show Divergence as:
- Line Style:
- Line thickness: User input divergence line thickness value
- Label Transparency: it could reduce labels mess on oscillator line, input "100" for label text only without label background
- Labels Text Color: User label text color selection
Auto Text Color > Auto color change of label text according to Dark/Light chart theme
- Bull Divergences: Enable/Disable of Bull divergences
> Color: User selection of Bull divergence color
- Bear Divergences: Enable/Disable of Bear divergences
> Color: User selection of Bear divergence color
- Regular Bull oversold only: It will show Regular Bullish RSI divergences in oversold zone only, RSI oversold threshold can be configure in "Primary RSI Settings" section.
- Regular Bear overbought only: It will show Regular Bearish RSI divergences in overbought zone only, RSI overbought threshold can be configure in "Primary RSI Settings" section.
+ Oscillator HHLL Pivots Settings ▾
- Pivot Length: User input value of HH/LL pivot length
> L.Text Color: User label text color selection
- HH color: User HH Label color selection
- HL color: User HL Label color selection
- LH color: User LH Label color selection
- LL color: User LL Label color selection
+ Oscillator OB/OS Colored Bars Settings▾
- Overbought/Oversold Bars Oscillator: Plots Overbought/Oversold color bars based on RSI, MFI, Stoch, Stoch RSI overbought/oversold threshold conditions separately or combined(when every oscillator reach its OB or OS threshold condition at same time).
- Overbought Bar Color: User RSI OB Bars color selection
- Oversold Bar Color: User RSI OS Bars color selection
+ Primary RSI Range Color ▾
- OB: Overbought Color
- OS: Oversold Color
- Bullish: Bullish Color
- Bearish: Bearish Color
+ Primary RSI Color interpolation ▾
- RSI Color: RSI Color
- OB: Overbought Color
- OS: Oversold Color
+ Primary RSI Center Line Color ▾
- OB: Overbought Color
- Bullish: Bullish Color
- Bearish: Bearish Color
- OS: Oversold Color
+ Primary RSI Traditional Color ▾
- RSI Color: RSI Color
- OB: Overbought Color
- OS: Oversold Color
Osc Overbought/Oversold Zones Settings ▾
- OB/OS Zone Band Lines: Enable/Disable OB/OS Zone Band Lines
- OB/OS Zones only: Only shows OB/OS Zones and disable all RSI band lines except Middle Band. Background will not be effected by this setting.
- Overbought Zone: User input value of Overbought Zone from
> To:
- Oversold Zone: User input value of Oversold Zone from
> To:
Osc Overbought/Oversold Highlights ▾
- Overbought Highlights : Enable/Disable Overbought Highlights
- Oversold Highlights : Enable/Disable Oversold Highlights
- Transparency: Gradient transparency of highlighted area
+ 'Oscillators Color Settings ▾
- Show Osc Symbol label : Enable/Disable of oscillator symbol label. Displays current oscillator symbol, but with "Override Oscillator Symbol" enabled from "Black RSI Dashboard" it will Auto/forcefully displays Override Oscillator Symbol on Oscillator
- Fade out Oscillator line: Fade out the oscillator line color, focusing only the most recent periods prominent for a clearer chart
- Fill Stoch/StochRSI lines: Fills Stoch/Stoch RSI lines
- Oscillator line thickness: user input value of oscillator line thickness
- Oscillator line offset: Shifts the oscillator to the left or to the right on the given number of bars, Default is 0
- OBV Color
- MFI Color
- ATR Color
- UO Color
- MOM Color
- CVD Bullish Color
- CVD Bearish Color
+ Background Setting ▾
- Custom Background Color: User selection of Background color
Authors & Credits: I'd like to THANK to Nabeel Black(myself), LonesomeTheBlue, iFuSiiOnzZ, jmosullivan, zdmre, creengrack, and TradingView for the locally sourced ingredients.
Disclaimer: DYOR. Not financial advice. Not a trading system. I am not affiliated with TradingView or any authors mentioned here; You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely. Always trade with confluence and Risk Management.
Feedback & Bug report
if you found any bug in this indicator or any suggestion, please let me know. Please give feedback & appreciate if you like to see more future updates and indicators. Thank you
[Rygel] Dual time frame Bollinger Bands with signals and alertsThis indicator displays two Bollinger Bands coming from two different time frames, chart's current one and a higher one.
It analyzes these two Bollinger Bands data and combines them with RSI, MFI and MACD divergences and SuperTrend to identify areas of opportunity where price is the most likely to be at a local top or bottom.
It uses probabilistic data, the Bollinger Bands, to identify convergence areas where the price is statistically overbought or oversold simultaneously at two different time frames, it then looks for signs of a trend exhaustion, using RSI, MFI and MACD divergences, and finally it looks for an early confirmation of a trend reversal, using SuperTrend data with aggressive settings.
This indicator does not produce buy and sell signals. You won't get a buy for every sell or a sell for every buy. In a bearish trend, you may get multiple consecutive bullish signals and in a bullish trend multiple bearish signals.
It is meant to help you to identify and to alert you about areas of opportunity where you could, for instance, consider taking some profits or opening a trade.
It is meant to support your investment or trading decisions, not to induce them.
SIGNALS
This indicator generated multiple types of signals. Diamonds are better than squares. Colored ones are better than grey ones.
Green square: a bullish signal confirmed by a regular divergence
Red square: a bearish signal confirmed by a regular divergence
Blue square: a bullish signal confirmed by a hidden divergence (disabled by default as these signals are less reliable)
Orange square: a bearish signal confirmed by a hidden divergence (disabled by default as these signals are less reliable)
Diamonds: same as the square signals but the signal is forming a divergence with a previous one. Diamond signals are always stronger (i.e. more reliable) than square signals.
Grey signals: same as the previous ones but for weaker signals. These signals appear when price in the current time frame is overbought or oversold but only close to be at the higher timeframe. (disabled by default as these signals are less reliable)
When a weak signal follows a strong one and creates a MACD divergence with it, it will be considered as a strong signal and displayed as a colored signal, even when weak signals are disabled.
When a strong signal follows a weak one, forming a MACD divergence, it will be shown as a diamond signal, even when weak signals are disabled.
Most reliable signals are green and red diamonds.
SETTINGS
Bollinger Bands
Source: the source used to calculate the Bollinger Bands ("close" by default)
Length: the moving-average length of the Bollinger Bands (20 by default)
You will most likely have no need to change these settings. If you're wondering what they actually do, you should most likely not touch them.
Main channel standard deviation: the standard deviation used to calculate the classical Bollinger Bands channel. (2.0 by default)
Outer bands standard deviation: additional channels outside the main one, using a larger standard deviation. (3.0 by default)
Theoretically, with a 1.0 standard deviation, around 68% of the price action should be contained within the Bollinger Bands.
With a 2.0 standard deviation, around 95%.
With a 3.0 standard deviation, around 99.7%.
With a 4.0 standard deviation, around 99.99%.
But as security prices returns have no actual statistical distribution, these probabilities don't strictly apply to Bollinger Bands. According to Wikipedia, studies have found that with a 2.0 standard deviation, only about 88% (85–90%) of the price data remain with the Bollinger Bands, instead of the theoretical 95%.
The higher you set the values, the less signals you'll get.
You should most likely keep the main channel standard deviation between 2 and 3 and add between +0.5 and +1 for the outer bands.
Most commonly used value for Bollinger Bands is 2.0.
Current time frame
Show current time frame Bollinger Bands: these are the Bollinger Bands you're used to. (enabled by default)
Show current time frame outer bands: add two additional bands outside the main channel using a larger standard deviation. (enabled by default)
Higher time frame
Show higher time frame Bollinger Bands: display secondary Bollinger Bands from a higher time frame. Time frames are configured in the below "Time frames" section. (enabled by default)
Show higher time frame outer bands: add two additional bands outside the main channel using a larger standard deviation (enabled by default)
Overbought and oversold
Show oversold and overbought background: add a background to the higher time Bollinger Bands whose color depends on the dual time frame Bollinger Bands oversold / overbought status. (enabled by default)
Asset is considered overbought/oversold when its price is outside of the Bollinger Bands' main channel.
Asset is considered strongly overbought/oversold when its price is outside of the Bollinger Bands' outer bands.
Dark red: both time frame are overbought (outside the main channel)
Red: one time frame is strongly overbought (outside the outer bands) and the other one is overbought (outside the main channel)
Bright red: both time frame are strongly overbought (outside the outer bands)
Dark green: both time frame are oversold (outside the main channel)
Green: one time frame is strongly oversold (outside the outer bands) and the other one is oversold (outside the main channel)
Bright green: both time frame are strongly oversold (outside the outer bands)
Signals
Show signals: display signals when an area of opportunity is detected. Read the introduction and the Signals section for more information. (enabled by default)
Show weak signals: display signals although at the higher time frame price is not yet overbought or oversold but close to be (disabled by default)
Divergences
Use MACD for divergences (enabled by default)
Use MFI for divergences (enabled by default)
Use RSI for divergences (enabled by default)
At least one source of divergences must be enabled for signals to work.
Enable hidden divergences: signals don't use hidden divergences by default as they generate more false positives than regular divergences. You can enable them to get more signals, it can be especially useful at high time frames (like weekly, monthly, etc.) where signals are rarer. (disabled by default)
Show divergences: draw MACD, MFI and RSI divergences on the chart. (disabled by default)
Green: regular bullish divergence
Red: regular bearish divergence
Blue: hidden bullish divergence
Orange: hidden bearish divergence
Confirmation
Confirmation speed: a faster confirmation speed will generate more false positive signals, a slower one will produce delayed but more reliable signals.
Fastest: don't wait for a SuperTrend confirmation, only wait for a divergence confirmation. Lot of false positives.
Fast: wait for a fast SuperTrend confirmation (SuperTrend factor = 1).
Medium: wait for a slower but more reliable SuperTrend confirmation (SuperTrend factor = 2). Fewer false positives but more lagging signals.
Slow: wait for an even slower but very reliable SuperTrend confirmation (SuperTrend factor = 3). Very few false positives but very late signals.
Time frames
You can define the higher time frames you wish to use here.
Default values try to adhere to a x6 to x8 ratio, x4 to x12 at maximum.
Some pairs are more significant than others, like 4 hour + daily, daily + weekly and weekly + monthly.
1 second: 10 seconds
5 seconds: 30 seconds
10 seconds: 1 minute
15 seconds: 2 minutes
30 seconds: 3 minutes
1 minute: 10 minutes
2 minutes: 15 minutes
3-4 minutes: 30 minutes
5-9 minutes: 45 minutes
10-11 minutes: 1 hour
12-14 minutes: 1 hour
15-29 minutes: 2 hours
30-44 minutes: 4 hours
45-59 minutes: 6 hours
1 hour: 8 hours
2 hours: 12 hours
3 hours: 1 day
4-5 hours: 1 day
6-7 hours: 2 days
8-11 hours: 3 days
12-23 hours: 4 days
1 day: 1 week
2 days: 2 weeks
3 days: 3 weeks
4 days: 1 month
5 days: 1 month
6 days: 1 month
1 week: 1 month
2 weeks: 2 months
3 weeks: 3 months
1 month: 6 months
2 months: 9 months
3 months: 12 months
4 months: 15 months
5 months: 21 months
6 months: 24 months
Time frames use the TradingView units:
s = seconds
h = hours
D = days
W = weeks
M = months
no unit = minutes
Time frame strings follow these rules:
They are composed of the multiplier and the time frame unit, e.g., “1S”, “30” (30 minutes), “1D” (one day), “3M” (three months).
The unit is represented by a single letter, with no letter used for minutes: “S” for seconds, “D” for days, “W” for weeks and “M” for months.
When no multiplier is used, 1 is assumed: “S” is equivalent to “1S”, “D” to “1D, etc. If only “1” is used, it is interpreted as “1min”, since no unit letter identifier is used for minutes.
There is no “hour” unit; “1H” is not valid. The correct format for one hour is “60” (remember no unit letter is specified for minutes).
The valid multipliers vary for each time frame unit:
- For seconds, only the discrete 1, 5, 10, 15 and 30 multipliers are valid.
- For minutes, 1 to 1440.
- For days, 1 to 365.
- For weeks, 1 to 52.
- For months, 1 to 12.
Styles
You can configure the appearance of the Bollinger Bands, the overbought / oversold background, the divergences and the signals here.
Advanced - MACD
Settings used for the MACD divergences. You most likely won't need to change these values, especially if you need them to be explained.
Advanced - MFI
Settings used for the MACD divergences. You most likely won't need to change these values, especially if you need them to be explained.
Advanced - RSI
Settings used for the MACD divergences. You most likely won't need to change these values, especially if you need them to be explained.
Advanced - SuperTrend
Settings used for the MACD divergences. You most likely won't need to change these values, especially if you need them to be explained.
ALERTS
Any signal: a bullish or bearish signal has been detected.
Bullish signal: a bullish signal has been detected.
Bullish signal with divergence: a bullish signal forming a divergence with a previous bullish signal has been detected.
Bearish signal: a bearish signal has been detected.
Bearish signal with divergence: a bearish signal forming a divergence with a previous bearish signal has been detected.
Overbought/oversold = asset price is outside of the Bollinger Bands' main channel.
Strongly overbought/oversold = asset price is outside of the Bollinger Bands' outer bands.
Current time frame - Entering overbought: asset is now overbought at the current time frame.
Current time frame - Exiting overbought: asset is not overbought anymore at the current time frame.
Current time frame - Entering strongly overbought: asset is now strongly overbought at the current time frame.
Current time frame - Exiting strongly overbought: asset is not strongly overbought anymore at the current time frame.
Current time frame - Entering oversold: asset is now oversold at the current time frame.
Current time frame - Exiting oversold: asset is not oversold anymore at the current time frame.
Current time frame - Entering strongly oversold: asset is now strongly oversold at the current time frame.
Current time frame - Exiting strongly oversold: asset is not strongly oversold anymore at the current time frame.
Higher time frame - Entering overbought: asset is now overbought at the higher time frame.
Higher time frame - Exiting overbought: asset is not overbought anymore at the higher time frame.
Higher time frame - Entering strongly overbought: asset is now strongly overbought at the higher time frame.
Higher time frame - Exiting strongly overbought: asset is not strongly overbought anymore at the higher time frame.
Higher time frame - Entering oversold: asset is now oversold at the higher time frame.
Higher time frame - Exiting oversold: asset is not oversold anymore at the higher time frame.
Higher time frame - Entering strongly oversold: asset is now strongly oversold at the higher time frame.
Higher time frame - Exiting strongly oversold: asset is not strongly oversold anymore at the higher time frame.
Dual time frame - Entering overbought: asset is now overbought at current and higher time frames.
Dual time frame - Exiting overbought: asset is not overbought anymore at current and higher time frames.
Dual time frame - Entering oversold: asset is now oversold at current and higher time frames.
Dual time frame - Exiting oversold: asset is not oversold anymore at current and higher time frames.
Dual time frame - Entering strongly overbought: asset is now strongly overbought at current and higher time frames.
Dual time frame - Exiting strongly overbought: asset is not strongly overbought anymore at current and higher time frames.
Dual time frame - Entering strongly oversold: asset is now strongly oversold at current and higher time frames.
Dual time frame - Exiting strongly oversold: asset is not strongly oversold anymore at current and higher time frames.
ABOUT THE HIGHER TIME FRAME BOLLINGER BANDS
Using a classical higher time frame Bollinger Bands would produce lagging data. For instance, if we are using a weekly BB at the daily time frame, we'll have to wait up to 7 days for the weekly bar to close to get the actual final weekly BB values. Instead, this indicator generates real time higher time frame Bollinger Bands by multiplying the moving average length of the Bollinger Bands by the higher time frame / current time frame ratio. For instance, a weekly BB in the daily time frame will use a x7 ratio (i.e. a 20 * 7 = 140 days MA BB).
It produces slightly different but very similar bands that are as meaningful and can be used in real time at lower time frames.
Alternatives would have been to wait up to seven days for signals to be finalized, which would have render them meaningless. Or to use previous week data, which would have made the signal inaccurrate.
To sum up, weekly Bollinger Bands use a 20 weeks moving average updated one time a week. In the daily time frame, this indicator also use a 20 weeks (140 days) moving average but updated daily instead of weekly.
A comparison between a traditional higher time frame Bollinger Bands vs the ones used by this indicator:
Blue and orange lines are the actual weekly BBs, grey ones are the daily updated ones.
ABOUT THE DIVERGENCES
This indicator uses the same divergences algorithm as my other indicators:
- RSI with divergences
- MACD with divergences
- Trend Reversal Indicator
You'll find more information about this algorithm on my RSI page.
Wiseball RSI Super Advanced Divergences | EssentialThis indicator is a cutting-edge tool designed to elevate your trading strategy by identifying both regular and hidden RSI divergences with unparalleled precision. Moreover, this indicator uniquely offers the capability to visualize divergences as they are forming ("anticipated"), a feature that stands out for its originality and innovation.
Unique Features and How They Work:
This tool distinguishes itself by leveraging its Divergences Detection System (DDS), which incorporates advanced algorithms to analyze market movements and oscillator behavior beyond the capabilities of existing open-source scripts. Here's a brief overview of what makes DDS uniquely effective:
Anticipated and Projected Divergences: DDS goes beyond mere detection of existing divergences. It offers insights into divergences that are currently forming and even projects potential future divergences by analyzing current trends and oscillator levels. This forward-looking feature empowers traders to anticipate market movements, offering a strategic advantage.
Comprehensive Pivot Analysis: Unlike typical divergence indicators, such as the "RSI Divergence Indicator," which only identifies divergences between two consecutive pivots, DDS is engineered to analyze as many previous pivots as the user's configuration allows (duration min/max). This capability ensures that no potential trend or extended divergence is overlooked, providing a more thorough market analysis.
Multiple Divergences Detection: Our system is capable of detecting multiple divergences within the same timeframe. For instance, it can identify a significant bearish divergence alongside a minor bullish divergence, offering a nuanced view of market dynamics that other indicators might miss.
Extensive Customization Options: DDS provides an array of configuration settings, allowing traders to tailor the detection system to their specific needs. Whether adjusting for sensitivity, timeframes, or specific divergence types, these customization options ensure that the tool can adapt to various trading strategies and preferences.
Our commitment to continuous development means that we regularly update the script based on user feedback, ensuring that it remains at the forefront of trading technology.
How to Use This Script:
Setup: Search for "Wiseball RSI Super Advanced Divergences" in the TradingView indicator library. Easily add the script to your TradingView chart and adjust the settings according to your trading preferences.
Analysis: The script automatically identifies divergences and highlights them on your chart, using color-coded lines and patterns for easy interpretation.
Action: Customize alerts to notify you of new divergences, enabling timely trading decisions based on the script's analysis.
Note: This indicator is best used on a dark background, as it has been optimized for this.
Divergence Style Coding:
Bullish Regular Divergence: Green
Bullish Hidden Divergence: Blue
Bearish Regular Divergence: Red
Bearish Hidden Divergence: Orange
Confirmed Divergence: Solid opaque line
Anticipated Divergence: Dotted line in the type's color
Projected Divergence: Dashed line in the type's color
Understand Technical and practical limitations:
This indicator is designed to facilitate ease of use, correspond to standard practices, and cover your essential needs. DDS options are limited to the essentials for simplicity and ease of use. Moreover, these limitations allow for reduced calculation time and a smooth display.
It is limited to displaying 100 divergences, and the number of bars analyzed is fixed at 960. Use the replay mode to view past divergences.
Divergences sharing the same endpoint are limited to the divergence with the longest duration.
Divergences of the same type that cross or share the same time space are filtered to display only one.
The maximum duration of divergences is set to 120 bars.
Anticipated divergences but not projected ones.
Note: As with all trading tools, it's crucial to use this indicator in conjunction with other indicators and fundamental analysis to validate your trading decisions. Our tools are designed to provide you with valuable insights, not to predict the future. Always conduct your research and trade responsibly.
Stoch_RSI_ChartEnhanced Stochastic RSI Divergence Indicator with VWAP Filter for Charts
This custom indicator builds upon the classic Stochastic RSI to automatically detect both regular and hidden divergences. It’s designed to help traders spot potential market reversals or continuations using two methods for divergence detection (fractal‑ and pivot‑based) while offering optional VWAP filtering for confirmation.
Key Features
Stoch RSI Calculation
The indicator computes a smoothed Stoch RSI using configurable parameters for RSI length, stochastic length, and smoothing periods. An option to average the K and D lines provides a cleaner momentum view.
Divergence Detection via Fractals & Pivots
Fractal-Based Divergences:
Looks for 4-candle patterns to identify higher-highs or lower-lows in the price that are not confirmed by the oscillator, signaling potential reversals.
Pivot-Based Divergences:
Utilizes TradingView’s built-in pivot functions to find divergence conditions over adjustable pivot ranges.
Regular vs. Hidden Divergences:
Regular Divergence: Occurs when price makes a new extreme (higher high or lower low) while the Stoch RSI fails to follow suit.
Hidden Divergence: Indicates potential trend continuations when the oscillator diverges against the established price trend.
Optional VWAP Filtering
The script includes two optional VWAP filters that work as follows:
VWAP Filter on Regular Divergences:
Only confirms regular divergence signals if the current price satisfies the VWAP condition (e.g., price is above VWAP for bullish signals, below VWAP for bearish signals).
VWAP Filter on Hidden Divergences:
Similarly, hidden divergence signals are validated only when the price meets specific VWAP conditions, adding an extra layer of trend confirmation.
Customizable Alerts and Visual Labels
Easily configure divergence labels (“B” for bullish, “S” for bearish) and enable up to four alert conditions for real‑time notifications when a divergence occurs.
Credits & History:
Log RSI by @fskrypt
Divergence Detection originally by @RicardoSantos (with edits from @JustUncleL)
Further Edits by @NeoButane on August 8, 2018
Latest Edits by @FYMD on June 1, 2024
hidden & regular rsi divergenceThis is a divergence indicator that draws regular and hidden divergences based on the Zigzag indicator and RSI indicator. There are two degrees of Zigzag. So, in each Zigzag degree, there are two types of regular divergences and one type of hidden divergence.
👉(The logic is written in case of a bearish regular divergence. The opposite will apply for a bullish one.)
Type 1 of regular divergence (Logic 1):
Zigzag has to form a higher high. The highest RSI within both Zigzag legs must form lower highs, but the RSI values which are exactly at the Zigzag highs should not form lower highs.
Type 2 of regular divergence (Logic 2):
Zigzag has to form a higher high. The highest RSI within both Zigzag legs must form lower highs, and the RSI values which are exactly at the Zigzag highs should form lower highs.
👉(The logic is written in case of a bearish hidden divergence. The opposite will apply for a bullish one.)
Zigzag has to form a lower high. The highest RSI within both Zigzag legs must form higher highs.
👉There is also a filter that will be applied to all the divergences. It only shows the divergences whose corresponding RSI value was above/below a level (overbought level/oversold level).
Logic for regular divergences:
Bearish regular divergence's first high's (leftmost) RSI value should be greater than or equal to 70.
Bullish regular divergence's first low's (leftmost) RSI value should be less than or equal to 30.
Logic for hidden divergences:
Bearish hidden divergence's second high's (rightmost) RSI value should be greater than or equal to 70.
Bullish hidden divergence's second low's (rightmost) RSI value should be less than or equal to 30.
👉There is another feature also. This indicator colors the background based on whether the RSI is in a bullish or bearish range.
If it's within 80-60, the background will be colored green (this means that RSI is in a bullish range).
If it's within 40-20, the background will be colored red (this means that RSI is in a bearish range).
Ergodic Market Divergence (EMD)Ergodic Market Divergence (EMD)
Bridging Statistical Physics and Market Dynamics Through Ensemble Analysis
The Revolutionary Concept: When Physics Meets Trading
After months of research into ergodic theory—a fundamental principle in statistical mechanics—I've developed a trading system that identifies when markets transition between predictable and unpredictable states. This indicator doesn't just follow price; it analyzes whether current market behavior will persist or revert, giving traders a scientific edge in timing entries and exits.
The Core Innovation: Ergodic Theory Applied to Markets
What Makes Markets Ergodic or Non-Ergodic?
In statistical physics, ergodicity determines whether a system's future resembles its past. Applied to trading:
Ergodic Markets (Mean-Reverting)
- Time averages equal ensemble averages
- Historical patterns repeat reliably
- Price oscillates around equilibrium
- Traditional indicators work well
Non-Ergodic Markets (Trending)
- Path dependency dominates
- History doesn't predict future
- Price creates new equilibrium levels
- Momentum strategies excel
The Mathematical Framework
The Ergodic Score combines three critical divergences:
Ergodic Score = (Price Divergence × Market Stress + Return Divergence × 1000 + Volatility Divergence × 50) / 3
Where:
Price Divergence: How far current price deviates from market consensus
Return Divergence: Momentum differential between instrument and market
Volatility Divergence: Volatility regime misalignment
Market Stress: Adaptive multiplier based on current conditions
The Ensemble Analysis Revolution
Beyond Single-Instrument Analysis
Traditional indicators analyze one chart in isolation. EMD monitors multiple correlated markets simultaneously (SPY, QQQ, IWM, DIA) to detect systemic regime changes. This ensemble approach:
Reveals Hidden Divergences: Individual stocks may diverge from market consensus before major moves
Filters False Signals: Requires broader market confirmation
Identifies Regime Shifts: Detects when entire market structure changes
Provides Context: Shows if moves are isolated or systemic
Dynamic Threshold Adaptation
Unlike fixed-threshold systems, EMD's boundaries evolve with market conditions:
Base Threshold = SMA(Ergodic Score, Lookback × 3)
Adaptive Component = StDev(Ergodic Score, Lookback × 2) × Sensitivity
Final Threshold = Smoothed(Base + Adaptive)
This creates context-aware signals that remain effective across different market environments.
The Confidence Engine: Know Your Signal Quality
Multi-Factor Confidence Scoring
Every signal receives a confidence score based on:
Signal Clarity (0-35%): How decisively the ergodic threshold is crossed
Momentum Strength (0-25%): Rate of ergodic change
Volatility Alignment (0-20%): Whether volatility supports the signal
Market Quality (0-20%): Price convergence and path dependency factors
Real-Time Confidence Updates
The Live Confidence metric continuously updates, showing:
- Current opportunity quality
- Market state clarity
- Historical performance influence
- Signal recency boost
- Visual Intelligence System
Adaptive Ergodic Field Bands
Dynamic bands that expand and contract based on market state:
Primary Color: Ergodic state (mean-reverting)
Danger Color: Non-ergodic state (trending)
Band Width: Expected price movement range
Squeeze Indicators: Volatility compression warnings
Quantum Wave Ribbons
Triple EMA system (8, 21, 55) revealing market flow:
Compressed Ribbons: Consolidation imminent
Expanding Ribbons: Directional move developing
Color Coding: Matches current ergodic state
Phase Transition Signals
Clear entry/exit markers at regime changes:
Bull Signals: Ergodic restoration (mean reversion opportunity)
Bear Signals: Ergodic break (trend following opportunity)
Confidence Labels: Percentage showing signal quality
Visual Intensity: Stronger signals = deeper colors
Professional Dashboard Suite
Main Analytics Panel (Top Right)
Market State Monitor
- Current regime (Ergodic/Non-Ergodic)
- Ergodic score with threshold
- Path dependency strength
- Quantum coherence percentage
Divergence Metrics
- Price divergence with severity
- Volatility regime classification
- Strategy mode recommendation
- Signal strength indicator
Live Intelligence
- Real-time confidence score
- Color-coded risk levels
- Dynamic strategy suggestions
Performance Tracking (Left Panel)
Signal Analytics
- Total historical signals
- Win rate with W/L breakdown
- Current streak tracking
- Closed trade counter
Regime Analysis
- Current market behavior
- Bars since last signal
- Recommended actions
- Average confidence trends
Strategy Command Center (Bottom Right)
Adaptive Recommendations
- Active strategy mode
- Primary approach (mean reversion/momentum)
- Suggested indicators ("weapons")
- Entry/exit methodology
- Risk management guidance
- Comprehensive Input Guide
Core Algorithm Parameters
Analysis Period (10-100 bars)
Scalping (10-15): Ultra-responsive, more signals, higher noise
Day Trading (20-30): Balanced sensitivity and stability
Swing Trading (40-100): Smooth signals, major moves only Default: 20 - optimal for most timeframes
Divergence Threshold (0.5-5.0)
Hair Trigger (0.5-1.0): Catches every wiggle, many false signals
Balanced (1.5-2.5): Good signal-to-noise ratio
Conservative (3.0-5.0): Only extreme divergences Default: 1.5 - best risk/reward balance
Path Memory (20-200 bars)
Short Memory (20-50): Recent behavior focus, quick adaptation
Medium Memory (50-100): Balanced historical context
Long Memory (100-200): Emphasizes established patterns Default: 50 - captures sufficient history without lag
Signal Spacing (5-50 bars)
Aggressive (5-10): Allows rapid-fire signals
Normal (15-25): Prevents clustering, maintains flow
Conservative (30-50): Major setups only Default: 15 - optimal trade frequency
Ensemble Configuration
Select markets for consensus analysis:
SPY: Broad market sentiment
QQQ: Technology leadership
IWM: Small-cap risk appetite
DIA: Blue-chip stability
More instruments = stronger consensus but potentially diluted signals
Visual Customization
Color Themes (6 professional options):
Quantum: Cyan/Pink - Modern trading aesthetic
Matrix: Green/Red - Classic terminal look
Heat: Blue/Red - Temperature metaphor
Neon: Cyan/Magenta - High contrast
Ocean: Turquoise/Coral - Calming palette
Sunset: Red-orange/Teal - Warm gradients
Display Controls:
- Toggle each visual component
- Adjust transparency levels
- Scale dashboard text
- Show/hide confidence scores
- Trading Strategies by Market State
- Ergodic State Strategy (Primary Color Bands)
Market Characteristics
- Price oscillates predictably
- Support/resistance hold
- Volume patterns repeat
- Mean reversion dominates
Optimal Approach
Entry: Fade moves at band extremes
Target: Middle band (equilibrium)
Stop: Just beyond outer bands
Size: Full confidence-based position
Recommended Tools
- RSI for oversold/overbought
- Bollinger Bands for extremes
- Volume profile for levels
- Non-Ergodic State Strategy (Danger Color Bands)
Market Characteristics
- Price trends persistently
- Levels break decisively
- Volume confirms direction
- Momentum accelerates
Optimal Approach
Entry: Breakout from bands
Target: Trail with expanding bands
Stop: Inside opposite band
Size: Scale in with trend
Recommended Tools
- Moving average alignment
- ADX for trend strength
- MACD for momentum
- Advanced Features Explained
Quantum Coherence Metric
Measures phase alignment between individual and ensemble behavior:
80-100%: Perfect sync - strong mean reversion setup
50-80%: Moderate alignment - mixed signals
0-50%: Decoherence - trending behavior likely
Path Dependency Analysis
Quantifies how much history influences current price:
Low (<30%): Technical patterns reliable
Medium (30-50%): Mixed influences
High (>50%): Fundamental shift occurring
Volatility Regime Classification
Contextualizes current volatility:
Normal: Standard strategies apply
Elevated: Widen stops, reduce size
Extreme: Defensive mode required
Signal Strength Indicator
Real-time opportunity quality:
- Distance from threshold
- Momentum acceleration
- Cross-validation factors
Risk Management Framework
Position Sizing by Confidence
90%+ confidence = 100% position size
70-90% confidence = 75% position size
50-70% confidence = 50% position size
<50% confidence = 25% or skip
Dynamic Stop Placement
Ergodic State: ATR × 1.0 from entry
Non-Ergodic State: ATR × 2.0 from entry
Volatility Adjustment: Multiply by current regime
Multi-Timeframe Alignment
- Check higher timeframe regime
- Confirm ensemble consensus
- Verify volume participation
- Align with major levels
What Makes EMD Unique
Original Contributions
First Ergodic Theory Trading Application: Transforms abstract physics into practical signals
Ensemble Market Analysis: Revolutionary multi-market divergence system
Adaptive Confidence Engine: Institutional-grade signal quality metrics
Quantum Coherence: Novel market alignment measurement
Smart Signal Management: Prevents clustering while maintaining responsiveness
Technical Innovations
Dynamic Threshold Adaptation: Self-adjusting sensitivity
Path Memory Integration: Historical dependency weighting
Stress-Adjusted Scoring: Market condition normalization
Real-Time Performance Tracking: Built-in strategy analytics
Optimization Guidelines
By Timeframe
Scalping (1-5 min)
Period: 10-15
Threshold: 0.5-1.0
Memory: 20-30
Spacing: 5-10
Day Trading (5-60 min)
Period: 20-30
Threshold: 1.5-2.5
Memory: 40-60
Spacing: 15-20
Swing Trading (1H-1D)
Period: 40-60
Threshold: 2.0-3.0
Memory: 80-120
Spacing: 25-35
Position Trading (1D-1W)
Period: 60-100
Threshold: 3.0-5.0
Memory: 100-200
Spacing: 40-50
By Market Condition
Trending Markets
- Increase threshold
- Extend memory
- Focus on breaks
Ranging Markets
- Decrease threshold
- Shorten memory
- Focus on restores
Volatile Markets
- Increase spacing
- Raise confidence requirement
- Reduce position size
- Integration with Other Analysis
- Complementary Indicators
For Ergodic States
- RSI divergences
- Bollinger Band squeezes
- Volume profile nodes
- Support/resistance levels
For Non-Ergodic States
- Moving average ribbons
- Trend strength indicators
- Momentum oscillators
- Breakout patterns
- Fundamental Alignment
- Check economic calendar
- Monitor sector rotation
- Consider market themes
- Evaluate risk sentiment
Troubleshooting Guide
Too Many Signals:
- Increase threshold
- Extend signal spacing
- Raise confidence minimum
Missing Opportunities
- Decrease threshold
- Reduce signal spacing
- Check ensemble settings
Poor Win Rate
- Verify timeframe alignment
- Confirm volume participation
- Review risk management
Disclaimer
This indicator is for educational and informational purposes only. It does not constitute financial advice. Trading involves substantial risk of loss and is not suitable for all investors. Past performance does not guarantee future results.
The ergodic framework provides unique market insights but cannot predict future price movements with certainty. Always use proper risk management, conduct your own analysis, and never risk more than you can afford to lose.
This tool should complement, not replace, comprehensive trading strategies and sound judgment. Markets remain inherently unpredictable despite advanced analysis techniques.
Transform market chaos into trading clarity with Ergodic Market Divergence.
Created with passion for the TradingView community
Trade with insight. Trade with anticipation.
— Dskyz , for DAFE Trading Systems
