MomentumX Pro, RSI, Fibonacci, DivergencesThis Pine Script code provides a technical analysis indicator on the TradingView platform, incorporating features like divergences, support/resistance levels, pivot points, RSI values, and volume-based doji candles. The key functionalities include:
RSI Divergences:
Bullish Divergence: When the price forms lower lows but RSI forms higher lows, it indicates potential upward movement, marked with arrows on the chart.
Bearish Divergence: When the price forms higher highs but RSI forms lower highs, it signals potential downward movement, also marked on the chart.
Pivot Points:
Detects and marks significant high (pivot high) and low (pivot low) levels that the price has reached.
Automatic Fibonacci Levels:
Automatically plots Fibonacci retracement levels based on the highest and lowest points in a given period.
RSI Values and Labels:
Generates buy/sell signals when RSI values exceed 80 or drop below 20.
Displays RSI levels as labels on the price chart.
Doji Candles and Volume Detection:
Highlights high-volume doji candles based on body size and volume thresholds.
Directional Movement and Alerts:
Triggers alerts for upward or downward price movement based on directional signals.
** Türkçe
Bu Pine Script kodu, TradingView platformunda uyumsuzluklar, destek/direnç seviyeleri, pivot noktaları, RSI değerleri ve hacimli doji mumlar gibi teknik analiz araçlarını kullanan bir indikatör sağlar. Kodun başlıca işlevleri şunlardır:
RSI Uyumsuzlukları:
Boğa Uyumsuzluğu (Bullish Divergence): Fiyat daha düşük dipler yaparken RSI daha yüksek dipler yapıyorsa, olası bir yükseliş işareti olarak grafik üzerinde oklar ile işaretlenir.
Ayı Uyumsuzluğu (Bearish Divergence): Fiyat daha yüksek tepeler yaparken RSI daha düşük tepeler yapıyorsa, olası bir düşüş işareti olarak grafik üzerinde işaretlenir.
Pivot Noktaları:
Fiyatın geçtiği yüksek (pivot high) ve düşük (pivot low) noktalar belirlenir ve işaretlenir.
Otomatik Fibonacci Seviyeleri:
Belirli bir periyottaki en yüksek ve en düşük seviyelere dayalı olarak Fibonacci seviyeleri otomatik çizilir ve doldurulur.
RSI Değerleri ve Etiketleri:
RSI değerlerinin 80 üzeri veya 20 altına düştüğünde sinyal verilmesi gibi belirli eşiklerde al/sat sinyalleri üretilir.
RSI seviyeleri mum grafiği üzerine etiket olarak eklenir.
Doji Mumları ve Hacim Tespiti:
Gövde büyüklüğüne ve hacim seviyelerine dayalı olarak yüksek hacimli doji mumlar işaretlenir.
Hareket Yönü ve Alarm:
Fiyat hareketi yukarı veya aşağı bir yönde sinyal verdiğinde alarm tetiklenir.
Dywergencja
OBV Divergence Indicator [TradingFinder] On-Balance Vol Reversal🔵 Introduction
The On-Balance Volume (OBV) indicator, introduced by Joe Granville in 1963, is a powerful technical analysis tool used to measure buying and selling pressure based on trading volume and price.
By aggregating trading volume—adding it on positive days and subtracting it on negative days—OBV creates a cumulative line that reflects market volume pressure, making it valuable for confirming trends, identifying entry and exit points, and forecasting potential price movements.
Divergences between price and OBV often provide significant signals. A bearish divergence occurs when the price forms higher highs while the OBV line forms lower highs. This discrepancy indicates that upward momentum is weakening, increasing the likelihood of a downward trend.
In contrast, a bullish divergence happens when the price makes lower lows, but the OBV line forms higher lows. This suggests increasing buying pressure and the potential for an upward trend reversal.
For instance, if the price is rising but the OBV trendline is falling, it may signal a bearish divergence, warning of a possible price decline. Conversely, if the price is falling while the OBV line is rising, this could signal a bullish divergence, indicating a possible price recovery. These signals are particularly useful for identifying market turning points.
OBV often acts as a leading indicator, moving ahead of price changes. For example, a rising OBV alongside stable or declining prices can signal an impending upward breakout.
Conversely, a declining OBV with rising prices may indicate that the current uptrend is losing strength. Traders using this strategy often consider entering positions at breakout levels while setting stop losses near recent swing highs or lows to manage risk effectively.
This integration highlights how OBV divergences can provide actionable insights for predicting price movements and managing trades efficiently.
Bullish Divergence :
Bearish Divergence :
🔵 How to Use
The OBV indicator, as a cumulative tool, assists analysts in comparing volume and price changes to identify new trends and key levels for entering or exiting trades. Beyond confirming existing trends, it is particularly effective in analyzing positive and negative divergences between price and volume, providing valuable signals for trading decisions.
🟣 Bullish Divergence
A bullish divergence occurs when the price continues its downward or stable trend, but the OBV line starts rising, forming a higher low compared to its previous low. This suggests increasing volume on up days relative to down days and often signals a reversal to the upside.
For instance, if an asset's price stabilizes near a support level but the OBV line shows an upward trend, this divergence could present an opportunity to enter a long position.
🟣 Bearish Divergence
A bearish divergence occurs when the price forms higher highs, but the OBV line declines, creating lower highs compared to previous peaks. This indicates decreasing volume on up days relative to down days and often acts as a warning for a reversal to the downside.
For example, if an asset’s price approaches a resistance level while OBV starts declining, this divergence may signal the beginning of a downtrend and could indicate a good time to exit long trades or enter short positions.
🔵 Setting
Period : The "Period" setting allows you to define the number of bars or intervals for "Periodic" and "EMA" modes. A shorter period captures more short-term movements, while a longer period smooths out the fluctuations and provides a broader view of market trends.
You can enable or disable labels to highlight key levels or divergences and tables to show numerical details like values and divergence types. These options allow for a customized chart display.
🔵 Table
The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator.
Exist : If divergence is detected, a "+" will appear in this row.
Consecutive: Shows the number of consecutive divergences that have formed in a short period.
Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong."
Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
🔵 Conclusion
The OBV (On Balance Volume) indicator is a simple yet effective tool in technical analysis that combines volume and price changes to provide a comprehensive view of market buying and selling pressure. By identifying positive and negative divergences, OBV enables analysts to detect early signs of trend reversals and refine their trading strategies.
Divergences in OBV often precede price changes, making it a leading indicator for predicting market movements. Using OBV alongside other technical tools can enhance decision-making accuracy and help traders identify better entry and exit points. However, it is essential to consider the limitations of OBV, such as the potential for signal errors and the impact of sudden news events.
Ultimately, OBV serves as a complementary tool in technical analysis, aiding in trend identification, signal confirmation, and risk management. A thoughtful application of this indicator, in combination with other analytical tools, can create valuable opportunities for profiting in financial markets.
S&P 500 E-Mini TrackerThis script generates a reference price for the S&P 500 ETF - SPY based on the current price of the ES contract, which is an E-Mini Futures contract representing the S&P 500 index. The indicator plots this reference price on the chart, providing a unique view of the relationship between these two popular markets.
Advantages:
Identifies divergence between the ES and SPY prices, indicating potential trading opportunities or shifts in market sentiment.
Confirms trends by showing the correlation between the ES and SPY prices.
Eliminates the need for multiple charts, allowing traders to focus on a single screen and make more informed decisions.
Customizable Parameters:
Color Scheme: Choose from various color options to customize the appearance of the indicator.
Line Style: Select from different line styles to change the visual representation of the reference price.
Divisor: Set the dividing factor to adjust the ratio at which the reference price is calculated. (Default value: 10). It is recommended to keep it at 10 for SPY.
To use it with other Stocks/ ETFs, use simple ratio math to calculate the divisor and you can customize the indicator to scale accordingly.
By using this indicator, traders can gain a deeper understanding of the relationship between the E-Mini and SPY markets, making it easier to identify trading opportunities and confirm trends.
Strength of Divergence Across Multiple Indicators (+CMF&VWMACD)Modified Version of Strength of Divergence Across Multiple Indicators by reees
Purpose:
This Pine Script indicator is designed to identify and evaluate the strength of bullish and bearish divergences across multiple technical indicators. Divergences occur when the price of an asset is moving in one direction while a technical indicator is moving in the opposite direction, potentially signaling a trend reversal.
Key Features:
1. Multiple Indicator Support: The script now analyzes divergences for the following indicators:
* RSI (Relative Strength Index)
* OBV (On-Balance Volume)
* MACD (Moving Average Convergence/Divergence)
* STOCH (Stochastic Oscillator)
* CCI (Commodity Channel Index)
* MFI (Money Flow Index)
* AO (Awesome Oscillator)
* CMF (Chaikin Money Flow) - Newly added
* VWMACD (Volume-Weighted MACD) - Newly added
2. Customizable Divergence Parameters:
* Bullish/Bearish: Enable or disable the detection of bullish and bearish divergences independently.
* Regular/Hidden: Detect both regular and hidden divergences (hidden divergences can indicate trend continuation).
* Broken Trendline Exclusion: Optionally ignore divergences where the trendline connecting price pivots is broken by an intermediate pivot.
* Pivot Lookback Periods: Adjust the number of bars used to identify valid pivot highs and lows for divergence calculations.
* Weighting: Assign different weights to regular vs. hidden divergences and to the relative change in price vs. the indicator.
3. Indicator-Specific Settings:
* Weight: Each indicator can be assigned a weight, influencing its contribution to the overall divergence strength calculation.
* Extreme Value: Define a threshold above which an indicator's divergence is considered "extreme," giving it a higher strength rating.
4. Divergence Strength Calculation:
* For each indicator, the script calculates a divergence "degree" based on the magnitude of the divergence and the user-defined weightings.
* The total divergence strength is the sum of the individual indicator divergence degrees.
* Strength is categorized as "Extreme," "Very strong," "Strong," "Moderate," "Weak," or "Very weak."
5. Visualization:
* Divergence Lines: The script draws lines on the chart connecting the price and indicator pivots that form a divergence (optional, with customizable transparency).
* Labels: Labels display the total divergence strength and a breakdown of each indicator's contribution. The size and visibility of labels are based on the strength.
6. Alerts:
* The script can generate alerts when the total divergence strength exceeds a user-defined threshold.
New Indicators (CMF and VWMACD):
* Chaikin Money Flow (CMF):
* Purpose: Measures the buying and selling pressure by analyzing the relationship between price, volume, and the accumulation/distribution line.
* Divergence: A bullish CMF divergence occurs when the price makes a lower low, but the CMF makes a higher low (suggesting increasing buying pressure). A bearish divergence is the opposite.
* Volume-Weighted MACD (VWMACD):
* Purpose: Similar to the standard MACD but uses volume-weighted moving averages instead of simple moving averages, giving more weight to periods with higher volume.
* Divergence: Divergences are interpreted similarly to the standard MACD, but the VWMACD can be more sensitive to volume changes.
How It Works (Simplified):
1. Pivot Detection: The script identifies pivot highs and lows in both price and the selected indicators using the specified lookback periods.
2. Divergence Check: For each indicator:
* It checks if a series of pivots in price and the indicator are diverging (e.g., price makes a lower low, but the indicator makes a higher low for a bullish divergence).
* It calculates the divergence degree based on the difference in price and indicator values, weightings, and whether it's a regular or hidden divergence.
3. Strength Aggregation: The script sums up the divergence degrees of all enabled indicators to get the total divergence strength.
4. Visualization and Alerts: It draws lines and labels on the chart to visualize the divergences and generates alerts if the total strength exceeds the set threshold.
Benefits:
* Comprehensive Divergence Analysis: By considering multiple indicators, the script provides a more robust assessment of potential trend reversals.
* Customization: The many adjustable parameters allow traders to fine-tune the script to their specific trading style and preferences.
* Objective Strength Evaluation: The divergence strength calculation and categorization offer a more objective way to evaluate the significance of divergences.
* Early Warning System: Divergences can often precede significant price movements, making this script a valuable tool for anticipating potential trend changes.
* Volume Confirmation: The inclusion of CMF and VWMACD add volume-based confirmation to the divergence signals, potentially increasing their reliability.
Limitations:
* Lagging Indicators: Most of the indicators used are lagging, meaning they are based on past price data. Divergences may sometimes occur after a significant price move has already begun.
* False Signals: No indicator is perfect, and divergences can sometimes produce false signals, especially in choppy or ranging markets.
* Subjectivity: While the script aims for objectivity, some settings (like weightings and extreme values) still involve a degree of subjective judgment.
Coinbase Premium DivergenceCoinbase Spot premium indicator
Includes divergence where the premium is decreasing and price is increasing (and vice-versa); orange bear div, blue bull div.
Confluence = Green bull / Red bear
Use to identify warnings
Probably best to use on 15 /30 min
Applies only to current conditions in the bitcoin market.
For use on BTCUSD only.
Hidden SMT Divergence ICT 01 [TradingFinder] HSMT SMC Technique🔵 Introduction
Hidden SMT Divergence, an advanced concept within the Smart Money Technique (SMT), identifies discrepancies between correlated assets by focusing on their closing prices.
Unlike the standard SMT Divergence, which uses high and low prices for analysis, Hidden SMT Divergence uncovers subtle signals by examining divergences based on the assets' closing values.
These divergences often highlight potential reversals or trend continuations, making this technique a valuable tool for traders aiming to anticipate market movements.
This approach applies across various markets and asset classes, including :
Commodities : CAPITALCOM:GOLD vs. CAPITALCOM:SILVER or BLACKBULL:BRENT vs. BLACKBULL:WTI .
Indices : NASDAQ:NDX vs. TVC:SPX vs. FX:US30 .
FOREX : FX:EURUSD vs. OANDA:GBPUSD vs. TVC:DXY (US Dollar Index).
Cryptocurrencies : BITSTAMP:BTCUSD vs. COINBASE:ETHUSD vs. KUCOIN:SOLUSDT vs. CRYPTOCAP:TOTAL3 .
Volatility Measures : FOREXCOM:XAUUSD vs. TVC:VIX (Volatility Index).
By identifying divergences within these asset groups, traders can gain actionable insights into potential market reversals or shifts in trend direction. Hidden SMT Divergence is particularly effective for pinpointing subtle market signals that traditional methods may overlook.
Bullish Hidden SMT Divergence : This divergence emerges when one asset forms a higher low, while the correlated asset creates a lower low in terms of their closing prices. It often signals weakening downward momentum and a potential reversal to the upside.
Bearish Hidden SMT Divergence : This occurs when one asset establishes a higher high, while the correlated asset forms a lower high based on their closing prices. It typically reflects declining upward momentum and a probable shift to the downside.
🔵 How to Use
The Hidden SMT Divergence indicator provides traders with a systematic approach to identify market reversals or trend continuations through divergences in closing prices between two correlated assets.
🟣 Bullish Hidden SMT Divergence
Bullish Hidden SMT Divergence occurs when the closing price of the primary asset forms a higher low, while the correlated asset creates a lower low. This pattern indicates weakening downward momentum and signals a potential reversal to the upside.
After identifying the divergence, confirm it using additional tools like support levels, volume trends, or indicators such as RSI and MACD. Enter a buy position as the price shows signs of reversal near support zones, ensuring proper risk management by placing a stop-loss below the support level.
Bearish Hidden SMT Divergence
Bearish Hidden SMT Divergence is identified when the closing price of the primary asset forms a higher high, while the correlated asset creates a lower high. This divergence suggests a weakening uptrend and a likely reversal to the downside.
Validate the signal by examining resistance levels, declining volume, or complementary indicators. Consider entering a sell position as the price starts declining from resistance levels, and set a stop-loss above the resistance zone to limit potential losses.
🔵 Setting
Second Symbol : Select the secondary asset to compare with the primary asset. By default, "XAUUSD" (Gold) is used, but it can be customized to any stock, cryptocurrency, or currency pair.
Divergence Fractal Periods : Defines the number of past candles considered for identifying divergences. The default value is 2, but traders can adjust it for greater precision.
Bullish Divergence Line : Displays a dashed line connecting the points of bullish divergence.
Bearish Divergence Line : Shows a similar line for bearish divergence points.
Bullish Divergence Label : Marks areas of bullish divergence with a "+SMT" label.
Bearish Divergence Label : Highlights bearish divergences with a "-SMT" label.
Chart Type : Choose between Line or Candle charts for enhanced visualization.
🔵 Conclusion
Hidden SMT Divergence offers traders a refined method for identifying market reversals by analyzing closing price discrepancies between correlated assets. Its ability to uncover subtle divergences makes it an essential tool for traders who aim to stay ahead of market trends.
By integrating this technique with other technical analysis tools and sound risk management, traders can enhance their decision-making process and capitalize on market opportunities with greater confidence.
Hidden SMT Divergence’s focus on closing prices ensures more precise signals, helping traders refine their strategies across various markets, including Forex, commodities, indices, and cryptocurrencies.
Its open-source nature allows for customization and verification, providing transparency and flexibility to suit diverse trading needs. Hidden SMT Divergence stands as a powerful addition to the arsenal of any trader seeking to unlock hidden opportunities in dynamic financial markets.
SMT Divergence ICT 01 [TradingFinder] Smart Money Technique🔵 Introduction
SMT Divergence (short for Smart Money Technique Divergence) is a trading technique in the ICT Concepts methodology that focuses on identifying divergences between two positively correlated assets in financial markets.
These divergences occur when two assets that should move in the same direction move in opposite directions. Identifying these divergences can help traders spot potential reversal points and trend changes.
Bullish and Bearish divergences are clearly visible when an asset forms a new high or low, and the correlated asset fails to do so. This technique is applicable in markets like Forex, stocks, and cryptocurrencies, and can be used as a valid signal for deciding when to enter or exit trades.
Bullish SMT Divergence : This type of divergence occurs when one asset forms a higher low while the correlated asset forms a lower low. This divergence is typically a sign of weakness in the downtrend and can act as a signal for a trend reversal to the upside.
Bearish SMT Divergence : This type of divergence occurs when one asset forms a higher high while the correlated asset forms a lower high. This divergence usually indicates weakness in the uptrend and can act as a signal for a trend reversal to the downside.
🔵 How to Use
SMT Divergence is an analytical technique that identifies divergences between two correlated assets in financial markets.
This technique is used when two assets that should move in the same direction move in opposite directions.
Identifying these divergences can help you pinpoint reversal points and trend changes in the market.
🟣 Bullish SMT Divergence
This divergence occurs when one asset forms a higher low while the correlated asset forms a lower low. This divergence indicates weakness in the downtrend and can signal a potential price reversal to the upside.
In this case, when the correlated asset is forming a lower low, and the main asset is moving lower but the correlated asset fails to continue the downward trend, there is a high probability of a trend reversal to the upside.
🟣 Bearish SMT Divergence
Bearish divergence occurs when one asset forms a higher high while the correlated asset forms a lower high. This type of divergence indicates weakness in the uptrend and can signal a potential trend reversal to the downside.
When the correlated asset fails to make a new high, this divergence may be a sign of a trend reversal to the downside.
🟣 Confirming Signals with Correlation
To improve the accuracy of the signals, use assets with strong correlation. Forex pairs like OANDA:EURUSD and OANDA:GBPUSD , or cryptocurrencies like COINBASE:BTCUSD and COINBASE:ETHUSD , or commodities such as gold ( FX:XAUUSD ) and silver ( FX:XAGUSD ) typically have significant correlation. Identifying divergences between these assets can provide a strong signal for a trend change.
🔵 Settings
Second Symbol : This setting allows you to select another asset for comparison with the primary asset. By default, "XAUUSD" (Gold) is set as the second symbol, but you can change it to any currency pair, stock, or cryptocurrency. For example, you can choose currency pairs like EUR/USD or GBP/USD to identify divergences between these two assets.
Divergence Fractal Periods : This parameter defines the number of past candles to consider when identifying divergences. The default value is 2, but you can change it to suit your preferences. This setting allows you to detect divergences more accurately by selecting a greater number of candles.
Bullish Divergence Line : Displays a line showing bullish divergence from the lows.
Bearish Divergence Line : Displays a line showing bearish divergence from the highs.
Bullish Divergence Label : Displays the "+SMT" label for bullish divergences.
Bearish Divergence Label : Displays the "-SMT" label for bearish divergences.
🔵 Conclusion
SMT Divergence is an effective tool for identifying trend changes and reversal points in financial markets based on identifying divergences between two correlated assets. This technique helps traders receive more accurate signals for market entry and exit by analyzing bullish and bearish divergences.
Identifying these divergences can provide opportunities to capitalize on trend changes in Forex, stocks, and cryptocurrency markets. Using SMT Divergence along with risk management and confirming signals with other technical analysis tools can improve the accuracy of trading decisions and reduce risks from sudden market changes.
PSP Indicator [Elbaz]Precision Swing Point or PSP is a unique technical analysis tool designed to compare the price action of three tickers that are in sync.
It highlights moments when the price structure diverges between the markets, identifying ideal entry points for trades - We would like to enter a trade when we found PSP and one of the tickers took the wick while others didn't.
This strategy provides an edge by focusing on periods of desynchronization between the indices, where one index may be showing strength while another is lagging. The idea is to find the moments where the candle colors (bullish or bearish) differ across the markets, then wait for one of the tickers to "take" the wick of the PSP while other didn't and enter a trade.
Once a divergence is detected, the indicator plots an arrow on the chart, signaling a potential trade entry. To minimize risk, a good place to put stop loss will at the end of the wick of the PSP — the high or low wick of the candle where the divergence occurs.
The PSP Indicator allows for several custom inputs:
- Tickers: Customize the tickers to compare. The default values are S&P 500 E-mini, NASDAQ E-mini, and Dow Jones E-mini, if you trade Crypto you might want to use BTC, ETH, TOTAL3.
- Lookback Period: The lookback input defines how far back the indicator should evaluate to calculate the price structure point.
- Highlight Bar Times: Users can specify particular times during the trading day to highlight, such as the market open or significant news events. This helps traders focus on key trading windows.
Delta Candle ColorsThe Delta Divergences indicator provides a visual representation of volume delta, which measures the difference between buying pressure and selling pressure within a candle. This is achieved by using intrabar (lower timeframe) volume and price fluctuations to estimate the delta between buying and selling pressure within each bar.
By color-coding candles based on this volume delta, traders can gain insight into the strength behind price movements and spot potential divergences. When a candle closes positively (higher than the previous close) but the volume delta is negative (more selling than buying), or when a candle closes negatively with a positive delta (more buying than selling), it indicates a divergence. These divergences can signal potential trend exhaustion or possible reversals.
The indicator includes custom alerts that notify the trader when these divergences occur:
Positive close with negative delta: Signals that the price is rising, but selling pressure is higher.
Negative close with positive delta: Signals that the price is falling, but buying pressure is higher.
In addition to color-coding candles based on delta, the indicator provides an option to display delta labels directly on the chart for each candle.
Finally, the option to only show divergences can be turned on. When enabled, non-divergent candles are colored normally, while only candles with delta divergences are highlighted, allowing traders to focus on the most relevant market information.
Divergence for Many Indicators v4 Screener▋ INTRODUCTION:
The “Divergence for Many Indicators v4 Screener” is developed to provide an advanced monitoring solution for up to 24 symbols simultaneously. It efficiently collects signals from multiple symbols based on the “ Divergence for Many Indicators v4 ” and presents the output in an organized table. The table includes essential details starting with the symbol name, signal price, corresponding divergence indicator, and signal time.
_______________________
▋ CREDIT:
The divergence formula adapted from the “ Divergence for Many Indicators v4 ” script, originally created by @LonesomeTheBlue . Full credit to his work.
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▋ OVERVIEW:
The chart image can be considered an example of a recorded divergence signal that occurred in $BTCUSDT.
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▋ APPEARANCE:
The table can be displayed in three formats:
1. Full indicator name.
2. First letter of the indicator name.
3. Total number of divergences.
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▋ SIGNAL CONFIRMATION:
The table distinguishes signal confirmation by using three different colors:
1. Not-Confirmed (Orange): The signal is not confirmed yet, as the bar is still open.
2. Freshly Confirmed (Green): The signal was confirmed 1 or 2 bars ago.
3. Confirmed (Gray): The signal was confirmed 3 or more bars ago.
_______________________
▋ INDICATOR SETTINGS:
Section(1): Table Settings
(1) Table location on the chart.
(2) Table’s cells size.
(3) Chart’s timezone.
(4) Sorting table.
- Signal: Sorts the table by the latest signals.
- None: Sorts the table based on the input order.
(5) Table’s colors.
(6) Signal Confirmation type color. Explained above in the SIGNAL CONFIRMATION section
Section(2): Divergence for Many Indicators v4 Settings
As seen on the Divergence for Many Indicators v4
* Explained above in the APPEARANCE section
Section(3): Symbols
(1) Enable/disable symbol in the screener.
(2) Entering a symbol.
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▋ FINAL COMMENTS:
For best performance, add the Screener indicator to an active symbol chart, such as QQQ, SPY, AAPL, BTCUSDT, ES, EURUSD, etc., and avoid mixing symbols from different market allocations.
The Divergence for Many Indicators v4 Screener indicator is not a primary tool for making trading decisions.
MTF RSI+CMO PROThis RSI+CMO script combines the Relative Strength Index (RSI) and Chande Momentum Oscillator (CMO), providing a powerful tool to help traders analyze price momentum and spot potential turning points in the market. Unlike using RSI alone, the CMO (especially with a 14-period length) moves faster and accentuates price pops and dips in the histogram, making price shifts more apparent.
Indicator Features:
➡️RSI and CMO Combined: This indicator allows traders to track both RSI and CMO values simultaneously, highlighting differences in their movement. RSI and CMO values are both plotted on the histogram, while CMO values are also drawn as a line moving through the histogram, giving a visual representation of their relationship. The often faster-moving CMO accentuates short-term price movements, helping traders spot subtle shifts in momentum that the RSI might smooth out.
➡️Multi-Time Frame Table: A real-time, multi-time frame table displays RSI and CMO values across various timeframes. This gives traders an overview of momentum across different intervals, making it easier to spot trends and divergences across short and long-term time frames.
➡️Momentum Chart Label: A chart label compares the current RSI and CMO values with values from 1 and 2 bars back, providing an additional metric to gauge momentum. This feature allows traders to easily see if momentum is increasing or decreasing in real-time.
➡️RSI/CMO Bullish and Bearish Signals: Colored arrow plot shapes (above the histogram) indicate when RSI and CMO values are signaling bullish or bearish conditions. For example, green arrows appear when RSI is above 65, while purple arrows show when RSI is below 30 and CMO is below -40, indicating strong bearish momentum.
➡️Divergences in Histogram: The histogram can make it easier for traders to spot divergences between price and momentum. For instance, if the price is making new highs but the RSI or CMO is not, a bearish divergence may be forming. Similarly, bullish divergences can be spotted when prices are making lower lows while RSI or CMO is rising.
➡️Alert System: Alerts are built into the indicator and will trigger when specific conditions are met, allowing traders to stay informed of potential entry or exit points based on RSI and CMO levels without constantly monitoring the chart. These are set manually. Look for the 3 dots in the indicator name.
How Traders Can Use the Indicator:
💥Identifying Momentum Shifts: The RSI+CMO combination is ideal for spotting momentum shifts in the market. Traders can monitor the histogram and the CMO line to determine if the market is gaining or losing strength.
💥Confirming Trade Entries/Exits: Use the real-time RSI and CMO values across multiple time frames to confirm trades. For instance, if the 1-hour RSI is above 70 but the 1-minute RSI is turning down, it could indicate short-term overbought conditions, signaling a potential exit or reversal.
💥Spotting Divergences: Divergences are critical for predicting potential reversals. The histogram can be used to spot divergences when RSI and CMO values deviate from price action, offering an early signal of market exhaustion.
💥Tracking Multi-Time Frame Trends: The multi-time frame table provides insight into the market’s overall trend across several timeframes, helping traders ensure their decisions align with both short and long-term trends.
RSI vs. CMO: Why Use Both?
While both RSI and CMO measure momentum, the CMO often moves faster with a value of 14 for example, reacting to price changes more quickly. This makes it particularly effective for detecting sharp price movements, while RSI helps smooth out price action. By using both, traders get a clearer picture of the market's momentum, particularly during volatile periods.
Confluence and Price Fluidity:
One of the powerful ways to enhance the effectiveness of this indicator is by using it in conjunction with other technical analysis tools to create confluence. Confluence occurs when multiple indicators or price action signals align, providing stronger confirmation for a trade decision. For example:
🎯Support and Resistance Levels: Traders can use RSI+CMO in combination with key support and resistance zones. If the price is nearing a support level and RSI+CMO values start to signal a bullish reversal, this alignment strengthens the case for entering a long position.
🎯Moving Averages: When the RSI+CMO signals a potential trend reversal and this is confirmed by a crossover in moving averages (such as a 50-day and 200-day moving average), traders gain additional confidence in the trade direction.
🎯Momentum Indicators: Traders can also look for momentum indicators like the MACD to confirm the strength of a trend or potential reversal. For instance, if the RSI+CMO values start to decrease rapidly while both the RSI+CMO also shows overbought conditions, this could provide stronger confirmation to exit a long trade or enter a short position.
🎯Candlestick Patterns: Price fluidity can be monitored using candlestick formations. For example, a bearish engulfing pattern with decreasing RSI+CMo values offers confluence, adding confidence to the signal to close or short the trade.
By combining the MTF RSI+CMO PRO with other tools, traders ensure that they are not relying on a single indicator. This layered approach can reduce the likelihood of false signals and improve overall trading accuracy.
Divergence Indicator Multi [TradingFinder] MACD AO RSI DIV Chart🔵 Introduction
🟣 What is Divergence in Financial Markets?
Divergence in technical analysis happens when the price of a stock moves in a direction opposite to certain indicators. This is a crucial concept in financial markets as it can signal either a trend reversal or a continuation of the current correction in the trend. Understanding divergence helps traders and analysts make more informed decisions.
🟣 Positive Regular Divergence (RD+)
A positive regular divergence occurs at the end of a downtrend, where two price lows form. This divergence appears when the price chart shows a new low, but the indicator does not follow, signaling potential buying opportunities.
Positive divergence indicates increased buying pressure and reduced selling pressure, making it a useful signal for forecasting price increases.
🟣 Negative Regular Divergence (RD-)
A negative regular divergence is seen during an uptrend when two price highs form. The price chart records a new high, but the indicator does not reflect this change, suggesting that a market downturn is likely.
This type of divergence shows strong selling pressure and weaker buying activity, which can help identify selling opportunities.
Both positive and negative divergences are powerful tools for identifying potential trend reversals and key support and resistance levels. For example, when an indicator trends upward while the price moves downward, this creates divergence, warning traders to reconsider their investment strategy.
🟣 Different Types of Divergence in Trading
1. Regular Divergence :
o Positive Regular Divergence (RD+)
o Negative Regular Divergence (RD-)
2. Hidden Divergence :
o Positive Hidden Divergence (HD+)
o Negative Hidden Divergence (HD-)
3.Time Divergence.
Note : This guide focuses specifically on Regular Divergence.
🟣 What is Regular Divergence?
Regular Divergence, often referred to as convergence, occurs when price action and indicators show conflicting patterns, usually signaling the end of a trend. Detecting regular divergence helps traders anticipate potential trend reversals or the formation of reversal patterns.
🔵 How to Use
To optimize the detection of divergence, you can adjust the Fractal Period to specify the length of time for identifying divergence patterns.
Additionally, with the Divergence Detection Method, you can select oscillators like the MACD, RSI, or AO to base divergence detection on.
Divergence in MACD :
MACD divergence occurs when the price chart forms an opposite pattern compared to the MACD line, indicating a potential price reversal.
Divergence in RSI :
In a downtrend, if the price chart forms two consecutive lows with the second lower than the first, but the RSI shows two lows with the second higher, this indicates positive regular divergence, which is a buy signal.
On the other hand, during an uptrend, if the price forms two highs with the second higher than the first, but the RSI shows the second high lower, this points to negative regular divergence, indicating a sell signal.
Divergence in AO (Awesome Oscillator) :
The AO indicator calculates histograms using the difference between 5-period and 34-period simple moving averages. It compares peaks and troughs of these histograms with price movements, detecting divergence and plotting lines and arrows to signal divergence.
🔵 Table
The following table breaks down the main features of the oscillator. It covers four critical categories: Exist, Consecutive, Divergence Quality, and Change Phase Indicator.
Exist : If divergence is detected, a "+" will appear in this row.
Consecutive: Shows the number of consecutive divergences that have formed in a short period.
Divergence Quality : Evaluates the quality of the divergence based on the number of occurrences. One is labeled "Normal," two are "Good," and three or more are considered "Strong."
Change Phase Indicator : If a phase change is detected between two oscillation peaks, this is marked in the table.
All In One Divergences Indicator - By CryptoEasonThis indicator displays divergences for multiple indicators on the chart. It includes divergences for volume, CCI, MACD, OBV, CMF, RSI, MFI, and maybe more in the future.
Below is an explanation of how divergences for these indicators are displayed:
1. Volume
I use volume to assess the strength of demand and supply. The way Volume divergences are calculated is similar to OBV.
Bearish Divergence: The price reaches a new high, but demand starts to weaken.
Bullish Divergence: The price reaches a new low, but supply starts to weaken.
2. CCI
Bearish Divergence: The price reaches a new high, but CCI forms a lower high, and the previous CCI peak is > 200.
Bullish Divergence: The price reaches a new low, but CCI forms a higher low, and the previous CCI low is < -200.
3. MACD
Bearish Divergence: The price reaches a new high, but the MACD lines cross at a lower point.
Bullish Divergence: The price reaches a new low, but the MACD lines cross at a higher point.
4. OBV
Bearish Divergence: The price reaches a new high, but OBV forms a lower high.
Bullish Divergence: The price reaches a new low, but OBV forms a higher low.
5. CMF
Bearish Divergence: The price reaches a new high, but CMF forms a lower high.
Bullish Divergence: The price reaches a new low, but CMF forms a higher low.
6. RSI
Bearish Divergence: The price reaches a new high, but RSI forms a lower high, and the previous RSI peak is > 70.
Bullish Divergence: The price reaches a new low, but RSI forms a higher low, and the previous RSI low is < 30.
7. MFI
Bearish Divergence: The price reaches a new high, but MFI forms a lower high, and the previous MFI peak is > 80.
Bullish Divergence: The price reaches a new low, but MFI forms a higher low, and the previous MFI low is < 20.
This indicator provides a sub-chart that displays seven indicators: Volume, CCI, MACD, OBV, CMF, RSI, and MFI.
When you find a divergence in the chart, I recommend using the sub-chart to check the real-time status of each indicator. This is important and is the way I use this indicator. Whenever a divergence signal appears, check the actual status of all the indicators with divergences.
Reminders:
1.Having too many divergence signals is not always better. Personally, I typically use divergences from four indicators: Volume, CCI, MACD, and OBV, and sometimes I add RSI. I recommend that you use divergence signals only from the indicators you are familiar with. If you're not familiar with a particular indicator, you can disable its divergence signals in the settings.
2.Some indicators are volume-related, such as OBV, Volume, MFI, and CMF. Therefore, the chart you're using should reflect the main trading volume of the market. For example, in the Bitcoin market, I recommend using the COINBASE:BTCUSD chart.
3.The divergence signals for MACD are displayed separately in this indicator. This is because the way MACD divergences are calculated is more complex. It requires the identification of the highs and lows of two MACD line crossovers, which is different from simply identifying the highs and lows of other indicators. Hence, MACD divergences are displayed separately in this indicator.
Note:
Although this indicator currently only shows divergences for seven indicators, I may add more divergence indicators in the future. If you would like to see divergence signals for a particular indicator included, or if you have any feature requests that are not currently offered, feel free to leave a comment and let me know.
============== 中文說明 (Chinese Introduction) ==============
這個指標是一個能在圖表上顯示多個指標背離的指標。
包括：成交量、CCI、MACD、OBV、CMF、RSI、MFI 等多個指標的背離。
以下說明這幾個指標背離的顯示方式：
1、成交量
我用成交量來判斷需求與供應強弱，它的背離判斷方式與OBV類似。
頂背離：價格創新高、但需求卻開始衰竭
底背離：價格創新低，但供應卻開始衰竭
2、CCI
頂背離：價格創新高、但CCI卻更低，且前一個高點 CCI > 200
底背離：價格創新低，但CCI卻更高，且前一個低點 CCI < -200
3、MACD
頂背離：價格創新高、但MACD快慢線交叉創下低點
底背離：價格創新低，但MACD 快慢線交叉雙下高點
4、OBV
頂背離：價格創新高、但OBV卻更低
底背離：價格創新低，但OBV卻更高
5、CMF
頂背離：價格創新高、但CMF卻更低
底背離：價格創新低，但CMF卻更高
6、RSI
頂背離：價格創新高、但RSI卻更低，且前一個高點 RSI > 70
底背離：價格創新低，但RSI卻更高，且前一個低點 RSI < 30
7、MFI
頂背離：價格創新高、但MFI卻更低，且前一個高點 MFI > 80
底背離：價格創新低，但MFI卻更高，且前一個低點 MFI < 20
該指標提供了副圖表，副圖表一共可顯示七個指標：成交量、CCI、MACD、OBV、CMF、RSI、MFI 。
當你發現當前價格出現背離時，我建議使用副圖表來一一檢查指標的真實情況，這很重要，這也是我使用這指標的方式，每當背離訊號出現時，檢查所有背離指標的真實情況。
提醒：
1、背離顯示並不是越多越好，我個人通常只使用 成交量、CCI、MACD、OBV 等四個指標的背離，偶爾會加上 RSI。我也建議你應該只使用自己熟悉的指標的背離，如果你不是很熟悉某個指標，那麼你可以在設定中取消顯示該指標的背離。
2、某些指標與成交量有關，例如OBV、Volume、MFI、CMF 等等，所以你使用的圖表應該要能反應市場的主要成交量，例如在比特幣市場裡，建議以 COINBASE:BTCUSD 圖表為主。
3、MACD 的背離訊號在這個指標裡是個別顯示的，因為MACD的背離判斷方式比較複雜，它需要判斷兩次快慢線交叉的高低點，跟其他指標只需要判斷高低點出現的值不太一樣，所以MACD背離在這個指標裡是單獨顯示的。
註：
雖然目前這個指標只有顯示七個指標的背離，但是未來我可能會加入更多指標的背離。如果你希望某個指標的背離訊號出現在這隻指標中，或是你想要某個功能但是目前這指標沒有提供，歡迎留言讓我知道。
Cumulative Volume Delta Divergence [TradingFinder] Periodic EMA🔵 Introduction
The Cumulative Volume Delta (CVD) is a powerful tool in technical analysis that is derived from market volume or trading activity. The Cumulative Volume Delta Divergence Detector Indicator helps traders identify Cumulative Volume Delta Divergences (CVD Divergence), which can provide reliable trading signals.
These divergences, such as bullish and bearish CVD divergences, act as key indicators of potential trend reversals in financial markets. By analyzing CVD divergences, traders can gain insights into the strength of buying and selling pressure and make more informed predictions about price trends.
The CVD indicator is particularly effective for traders who engage in day trading and scalping, as it helps identify price reversal points by analyzing volume and price behavior.
Using the CVD indicator in combination with other technical tools such as support and resistance levels and candlestick patterns allows for a more accurate market analysis.
🔵 How to Use
Divergences are one of the most important technical analysis signals that indicate the current strength of a price move may not be sustainable.
Cumulative Volume Delta Divergence helps traders identify potential trading opportunities that may not be visible on the price chart alone.
This type of divergence examines the relationship between buying and selling volume and price, enabling traders to better understand price trends.
🟣 Bullish CVD Divergence
A bullish CVD divergence occurs when the price makes a lower low, but the CVD indicator shows a higher low. This indicates increasing buying pressure in the market, even though the price is declining. In other words, despite the price dropping, buyers are gradually gaining strength, which could signal a price reversal and the start of a bullish trend.
How to use this signal : In this scenario, traders looking to go long can use this signal as a favorable opportunity to enter the market. After a bullish divergence, the market typically tends to move upward.
To reduce risk, traders can wait for further confirmation from the price chart. For example, if the price breaks through the previous high after the divergence or breaks a resistance level, this could be a more reliable signal for entering the market.
🟣 Bearish CVD Divergence
A bearish CVD divergence is the opposite of a bullish divergence. In this type of divergence, the price makes a higher high, but the CVD indicator shows a lower high. This indicates decreasing buying pressure and weakening momentum in the current bullish trend. A bearish divergence often serves as a warning of a potential market reversal to the downside.
How to use this signal : Traders can use this divergence as an opportunity to exit long positions or enter short positions. When the CVD indicator makes a lower high compared to the price, it signals weakness in buyer strength.
If traders receive further confirmation from the price chart, such as a break of key support levels or an increase in selling volume, this can serve as a stronger signal for the beginning of a bearish trend.
🟣 How to Build a Trading Strategy with Cumulative Volume Delta Divergence
Using CVD divergence alone may not be sufficient. Traders should combine this tool with other technical analysis techniques and indicators to have more confidence in their decisions. For example, when observing a CVD divergence, traders can also analyze volume, trend lines, or candlestick patterns to get a more accurate market analysis.
Additionally, risk management should always be a priority. Using stop-loss orders and properly sizing trades can help traders minimize their losses if they make a mistake.
🔵 Setting
Divergence Fractal Period : Determines the period of swings. The minimum and default value is 2.
CVD Period : You can set the period of " Periodic " and " EMA " modes.
Cumulative Mode : It has three modes "Periodic" and "EMA". In "Periodic" mode, it accumulates the volume periodically and in "EMA" mode, it calculates the moving average of the volume.
Market Ultra Data : If you turn on this feature, 26 large brokers will be included in the calculation of the trading volume. The advantage of this capability is to have more reliable volume data. You should be careful to specify the market you are in, FOREX brokers and Crypto brokers are different.
🔵 Conclusion
The Cumulative Volume Delta (CVD) indicator is a powerful tool in technical analysis, helping traders better identify price trends and make more accurate market predictions. By identifying CVD divergences, traders can anticipate price reversals and time their market entries and exits accordingly.
Bullish and bearish CVD divergences each provide valuable signals that can help traders identify the best entry and exit points in the market. A bullish CVD divergence signals strength in buying that will likely lead to a price increase, while a bearish CVD divergence indicates weakness in the bullish trend and the potential for the beginning of a bearish trend.
Overall, combining CVD with other technical analysis tools and employing risk management strategies can help traders make better trading decisions and capitalize on available market opportunities.
Fisher Divergence Overlay [BackQuant]Fisher Divergence Overlay
You can find the other Fisher Script Here !
Overlay Adaptation The Fisher Divergence Overlay is a newly enhanced version of the original Fisher Transformation indicator, designed specifically to be plotted directly on price charts. This adaptation allows traders to visualize Fisher Transform signals, divergences, and trend shifts directly over the price action, offering a more intuitive way to monitor market trends and potential reversals without the need for separate indicator windows. The overlay structure is particularly useful for spotting divergences and shifts in momentum as they relate to key price levels.
Why Turn the Fisher into an Overlay?
By transforming the Fisher Divergence indicator into an overlay, traders gain a more direct view of the relationship between price movements and the Fisher Transformation's signals. Divergences and midline crossovers, key components of the Fisher strategy, can now be clearly seen relative to the current price action. The decision to integrate this functionality as an overlay allows for a cleaner and more insightful trading experience, helping traders make quicker, more informed decisions based on market dynamics.
Midline Cross Signals : The overlay makes it easy to see when the Fisher Transform crosses above or below the midline, a critical signal for potential trend reversals.
Divergence Signals : Both regular and hidden divergences are plotted directly over price bars, offering immediate visual confirmation of potential trend shifts.
Key Features of the Overlay Version
Kaufman Adaptive Moving Average (KAMA): The Fisher Transformation in this overlay version can be adapted using Kaufman’s Adaptive Moving Average (KAMA). This enhances the Fisher's responsiveness to current market volatility, smoothing out price data while maintaining the accuracy of trend signals.
Divergence Detection: The overlay includes both regular and hidden bullish and bearish divergence detection, with these divergences plotted directly on the price chart. This visual feedback makes it easier for traders to spot when the momentum of the Fisher Transform deviates from the actual price movement, often signaling potential reversals.
Dynamic Bar Coloring: The bars are color-coded based on either the Fisher trend or divergences, allowing traders to visually interpret market sentiment without additional analysis. Green bars signal an upward trend or bullish divergence, while red bars indicate a downward trend or bearish divergence.
Take Profit Hues: In conjunction with a normalized RSI, the overlay includes background hues for overbought and oversold conditions, providing additional context for exit points or potential reversals.
How to Use the Fisher Overlay Traders can use this overlay to streamline their workflow by having both the Fisher signals and price action in the same visual space. The key signals include:
Midline Cross Signals: A crossover of the Fisher Transform above the midline often indicates a shift toward bullish momentum, while a cross below suggests bearish momentum.
Divergences: Regular and hidden divergences, displayed directly on the chart, help traders identify moments when the momentum of the Fisher Transform is in contrast with price movements, signaling potential reversals.
RSI Confluence: Overbought and oversold signals, provided by the integrated RSI, give further insight into potential exhaustion points in the market, marked by background color changes on the chart.
Strategic Value of the Fisher Divergence Overlay
This overlay offers a streamlined, efficient way to interpret Fisher Transform signals, divergences, and confluence signals like RSI in real-time. The visual integration of these signals with price action enhances decision-making by providing immediate context, making it easier to spot high-probability trade setups.
Trend Confirmation: The overlay version helps confirm trends by visually aligning Fisher Transform signals with price levels. Traders can use this feature to strengthen their conviction before entering or exiting a trade.
Adaptability: With the option to use KAMA for adaptive price smoothing, this overlay remains responsive across different market environments, making it suitable for both trending and volatile markets.
Summary and Interpretation Tips
It enhances the traditional Fisher Transform with visual elements like divergence detection, RSI confluence, and midline cross signals. By overlaying these elements directly on the price chart, traders can quickly interpret key signals and make better trading decisions.
Use this indicator to identify trend shifts and potential reversals by focusing on midline crossovers and divergences. The visual cues—bar colors, divergence labels, and background hues—make it easy to spot actionable moments without cluttering the chart. For best results, combine this overlay with other trend-following tools to confirm your trades and maximize the utility of Fisher Transform signals.
Nautilus Oscillator [BigBeluga]NAUTILUS OSCILLATOR
The Nautilus Oscillator by BigBeluga is an advanced technical analysis tool designed to help traders identify trend direction, strength, and potential reversal points in the market. This versatile indicator combines multiple analytical elements to provide a comprehensive view of market conditions.
Why It’s Unique:
The Nautilus Oscillator is unique too, its blend of multiple technical analysis tools into a single, coherent indicator.
By smoothing with a unique and highly valued in signal processing filter, and incorporating dynamic thresholds, this oscillator offers a more refined and adaptable approach to identifying trading signals.
The filter is designed to have as flat a frequency response as possible in the passband. This means that within the range of frequencies it allows through, minimizes distortion and maintains the true shape of the signal more accurately than many other types of filters.
The addition of a trend filter and divergence detection further enhances its capability, making it a versatile tool for both trend-following and reversal strategies. The built-in dashboard and clean chart management features provide traders with a streamlined, informative, and visually appealing trading experience. This makes the Nautilus Oscillator not just a tool for analysis but a comprehensive trading system in itself.
🔵 KEY FEATURES
● Main Oscillator Line
Smoothly transitions between bullish (green) and bearish (purple) colors
Helps visualize mean-reversion, market trend, and momentum
● Histogram
Displayed below the main oscillator line
Represents the rate of change of the main oscillator
Acts as a leading indicator, often showing changes faster than the main oscillator line
Can be viewed as a predictive element, potentially indicating future movements of the main oscillator
Histogram crossover signals (small dots) can indicate short-term momentum shifts
Useful for early detection of potential trend changes or momentum shifts
● Confluence Arrows
Arrows displayed above and below the oscillator
Provide additional confluence signals that work in conjunction with the histogram
Act as supplementary indicators to confirm the main oscillator signals
Help in identifying stronger, more reliable trading opportunities when aligned with other indicator elements
● Trend Filter
Displayed as horizontal lines above and below the oscillator
Upper lines (above the oscillator): Indicate an uptrend
Lower lines (below the oscillator): Indicate a downtrend
Three lines appear when a strong trend is present
Only one line is displayed when there's no trend
Color-coded for easy identification (typically green for up, purple for down)
Color intensity indicates the strength of the trend. More intensive color indicates stronger trend
Provides a clear visual representation of the overall market trend
Helps traders align their strategies with the broader market direction
● Overbought/Oversold Thresholds
Can be set to static levels or dynamically adjust based on market volatility
Helps identify potential reversal points in the market
● Signals
Strong signals: Displayed as circles on both the oscillator and main chart (optional)
Simple signals: Shown as X marks on both the oscillator and main chart (optional)
Histogram crossover signals: Small dots on the histogram
● Stop Levels
Optional feature that plots potential stop-loss levels for strong signals
Based on the Market volatility for adaptability to different market conditions
● Divergences
Identifies and displays bullish and bearish divergences between price and the oscillator
Helps spot potential trend reversals
● Dashboard
Provides at-a-glance information about current market conditions
Displays trend direction, last signal, histogram direction, threshold mode, and divergence status
🔵 HOW TO USE
● Trend Identification
Use the main oscillator line color and position, along with the trend filter lines, to determine the overall market trend
● Entry Signals
Strong signals (circles) suggest potential entry points in the direction of the trend
Simple signals (X marks) can be used for more frequent, but potentially less reliable, entry opportunities
Histogram crossover signals (dots) can indicate changes faster than the main oscillator line
Look for alignment with confluence arrows for stronger entry signals
● Exit Signals
Use the overbought/oversold thresholds as potential enter and exit points
Stop levels (if enabled) provide dynamic exit points for risk management
● Reversal Identification
Watch for divergences between price and the oscillator for potential trend reversals
Pay attention to the histogram direction for early signs of momentum shifts
Notice changes in the trend filter lines (from three lines to one, or vice versa)
● Confirmation
Use the dashboard to quickly confirm the current market state and indicator readings
Combine signals from different elements (main line, histogram, trend filter, confluence arrows) for stronger confirmation
🔵 CUSTOMIZATION
The Nautilus Oscillator offers several customization options to suit different trading styles:
Adjust the main oscillator length
Set static or dynamic overbought/oversold thresholds
Enable/disable and customize stop levels
Toggle divergence display and adjust its parameters
Show/hide the information dashboard
Display simple signals on the main chart
By fine-tuning these settings, traders can adapt the Nautilus Oscillator to various market conditions and personal trading strategies.
The Nautilus Oscillator provides a multi-faceted approach to market analysis, combining trend identification, momentum assessment, and reversal detection in one comprehensive tool. Its visual cues and customizable features make it suitable for both novice and experienced traders across various timeframes and markets. The integration of multiple analytical elements – including the predictive histogram, confluence arrows, and adaptive trend filter – offers traders a rich set of data points to inform their trading decisions.
Chebyshev Filter Divergences [ChartPrime]The Chebyshev Filter Divergences Oscillator
The Chebyshev Filter indicator is a powerful tool designed to identify potential divergences between price and a filtered version of price based on the Chebyshev filter algorithm. It helps to spot mean reversion points by highlighting areas where price and the filtered price exhibit conflicting signals.
Chebyshev Filter Background:
The Chebyshev filter, named after the Russian mathematician Pafnuty Chebyshev , was invented in the mid-19th century. It's a type of filter used in signal processing and digital signal processing for smoothing or removing unwanted frequency components from a signal.
It provides a sharp cutoff between the passband and stopband of a filter while minimizing ripple in the passband or stopband.
Chebyshev filters are widely used in various applications, including audio and image processing, telecommunications, and financial analysis, due to their efficiency and effectiveness in filtering out noise and extracting relevant information from signals.
◆ Indicator Calculation:
The indicator first applies a Chebyshev filter to the price data, producing a filtered price series. It then normalizes this filtered price series to a range, where it can be used as oscillator with divergences.
◆ Visualization:
The filtered price series is plotted on the chart, highlighting areas where it deviates from its smoothed average.
Bullish and bearish divergences are marked on the chart with specific lines and colors, indicating potential shifts in market sentiment.
Signs of change in direction are also marked on the chart, providing additional insights into possible mean reversals of price.
◆ User Inputs:
Ripple (dB): Specifies the desired ripple factor in decibels for the Chebyshev filter.
Normalization Length: Sets the length of the normalization period used in the Chebyshev filter.
Pivots to Right and Left: Determines the number of pivot points to the right and left of the current point to consider when detecting divergences.
Max and Min of Lookback Range: Specifies the maximum and minimum lookback range for identifying divergences.
Show Divergences: Enables or disables the display of bullish and bearish divergences.
Visual Settings: Allows customization of colors for visual clarity.
In conclusion, the Chebyshev Filter Divergences indicator, with its ability to identify potential mean reversion points through divergences between price and a filtered version of price, offers traders a valuable tool for decision-making in the financial markets. By highlighting areas of divergence, traders can potentially capitalize on market inefficiencies and make more informed trading decisions.
Multiple Divergences [UAlgo]🔶 Description:
"Multiple Divergences " is providing insights into potential divergences across multiple indicators. Divergence, a concept in technical analysis, occurs when the price of an asset diverges from the direction of an accompanying indicator, suggesting a possible reversal or continuation in the price trend.
🔶 Key Features:
Customizable Divergence Settings: Users can adjust parameters such as the minimum number of divergences required to display labels, pivot lookback periods, and plot options for various types of divergences (regular or hidden) and bullish/bearish labels.
Multiple Technical Indicators: The script supports a wide range of popular indicators, including MACD, RSI, Stochastic, CCI, Momentum, OBV, DMI Oscillator, VWmacd, Chaikin Money Flow, Money Flow Index, and Awesome Oscillator. You can choose any of the above-mentioned technical indicators for which you want to capture divergences.
🔶 Purpose of Using Multiple Technical Indicators
In the complex and volatile world of trading, relying on a single indicator can provide an incomplete or misleading picture of market conditions. Different technical indicators analyze various aspects of price movement, volume, and momentum, offering unique insights that can complement each other. By utilizing multiple indicators, traders can cross-verify signals, reduce false positives, and increase the reliability of their trading decisions.
Identifying divergences across multiple indicators further enhances this reliability, as a divergence spotted in several indicators simultaneously is a stronger signal than one found in isolation. This comprehensive approach helps traders to anticipate potential market turning points with greater confidence and precision.
By integrating multiple technical indicators and meticulously tracking their divergences, this script aims traders with a robust tool for navigating the complexities of financial markets.
🔶 How to Obtain Divergences
Regular Bullish Divergence:
This occurs when the price makes a new lower low compared to a previous pivot low, indicating a downward trend. Simultaneously, the selected oscillator makes a higher low compared to its previous pivot low, indicating a potential upward momentum. This divergence suggests that, despite the falling price, the underlying momentum is strengthening, potentially signaling a reversal to an upward trend.
Regular Bearish Divergence:
This happens when the price makes a new higher high compared to a previous pivot high, indicating an upward trend. Concurrently, the selected oscillator makes a lower high compared to its previous pivot high, indicating weakening momentum. This divergence suggests that, despite the rising price, the underlying momentum is weakening, potentially signaling a reversal to a downward trend.
Example for Regular Bullish and Regular Bearish Divergences (Minimum Divergenes Count to Display = 3, All Selected):
Hidden Bullish Divergence:
Hidden bullish divergence is observed when the price makes a higher low compared to a previous pivot low, indicating an upward trend. At the same time, the oscillator makes a lower low compared to its previous pivot low, indicating a potential strengthening momentum. This condition suggests that the underlying strength of the upward trend is intact, despite the oscillator indicating otherwise.
Hidden Bearish Divergence:
This occurs when the price makes a lower high compared to a previous pivot high, indicating a downward trend. Simultaneously, the oscillator makes a higher high compared to its previous pivot high, indicating a potential weakening momentum. This divergence suggests that the underlying weakness of the downward trend is intact, despite the oscillator indicating otherwise.
Divergence Labeling: The script dynamically generates labels on the chart to visually highlight detected divergences based on user-defined criteria. (E.g. "5 Regular Bullish Divs." , "1 Hidden Bearish Div")
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Advanced Awesome Oscillator [CryptoSea]Advanced AO Analysis Indicator
The Advanced AO Analysis indicator is a sophisticated tool designed to evaluate the Awesome Oscillator (AO) in search of regular and hidden divergences that signal potential price reversals. By tracking the intensity and duration of the AO's movements, this indicator aids traders in pinpointing critical points in price action.
Key Features
Divergence Detection: Identifies both regular and hidden bullish and bearish divergences, providing early signs of potential market reversals.
Customizable Lookback Periods: Allows users to set specific lookback windows to define the strength and relevance of detected divergences.
Adaptive Oscillator Display: Features customizable display options for the AO, enabling users to view data in different modes suited to their analysis needs.
Alert System: Includes configurable alerts to notify users of potential divergence formations, helping traders respond promptly.
How it Works
AO Calculation: Computes the AO as the difference between short-term and long-term moving averages of the midpoints of bars, highlighting momentum shifts.
Pivot Point Analysis: Utilizes advanced algorithms to find low and high pivot points based on the oscillator values, crucial for spotting trend reversals.
Range Validation: Verifies that divergences occur within a predefined range from pivot points, ensuring their validity and strength.
Visualisation: Plots AO values and potential divergences directly on the chart, aiding in quick visual analysis.
Application
Strategic Decision-Making: Assists traders in making informed decisions by providing detailed analysis of AO movements and divergence.
Trend Confirmation: Reinforces trading strategies by confirming potential reversals with pivot point detection and divergence analysis.
Behavioural Insight: Offers insights into market dynamics and sentiment by analyzing the depth and duration of AO cycles above and below zero.
The Advanced AO Analysis indicator equips traders with a powerful analytical tool for studying the Awesome Oscillator in-depth, enhancing their ability to spot and act on divergence-based trading opportunities in the cryptocurrency markets.
Discovery IndexThe Discovery Index is an original technical indicator which attempts to display directional market pressure and momentum based on accumulated candle-over-candle measurements.
Discovery , in this context, is the act of finding (discovering) New Highs and Lows.
> What is 'Discovery'
Not to be confused with "Price Discovery", the term for setting the spot price of an asset.
The term 'Discovery' in Discovery Index is used based on the literal definition of 'Discovery', such as, the action of finding what was previously unknown.
Given this definition,
Discovery is the difference between highs or lows only when the current high is higher than the previous high or the current low is lower than the previous low.
Below is a visual example of exactly where Discovery is seen from each candle.
Since discovery is only based on points of the candle, and not specifically the direction of the candle; it is possible for discovery to occur in both directions from the same candle.
It is also possible for no discovery to occur from a candle.
> Calculation
The Discovery Index is the Net Total of discovery data over a specified length of bars.
Discovery Index = Sum of Upwards Discovery + Sum of Downwards Discovery
Note: Upwards Discovery is always Positive, and Downwards Discovery is always Negative. By adding both together, their Net Total is produced. This value is the "Discovery Index".
Wick Calculation Example
> Volume Discovery
Using Volume for the Discovery Index Calculation allows for a different dimension to be added to the data for new analysis opportunities.
While volume data is only a single value, by accumulating this data over time, we are able to fabricate a candle body from the data by accounting for the direction of the chart candles.
This allows for the Calculation of the Discovery Index based on volume data.
Volume Example
> Display
The display uses a "Candlestick histogram" display. The bodies and wicks from the display represent the discovery data from the respective points in each candle. (Wick Discovery & Candle Body Discovery).
This style of histogram allows for the display of both data sources, preserving the accuracy and distinction between each type, while also providing a clean display.
> Considerations
Discovery index is not an Oscillator, since there are no upper or lower boundaries to its rotations.
There are not (at this time) any "Over-bought" or "Over-sold" Areas, this is partially due to the previous consideration since any levels for these could potentially change from chart to chart. Additionally, it would generally be better to read the data based on the context of the current market.
Non-directional movements effect the Discovery Index as well. Since Discovery does not occur from every bar, the Index reflects hesitations as well as movements in market direction.
With the option to input a symbol, the Discovery Index Indicator is not constrained to one chart ticker for its calculation and could help to see shifts between different symbols, making it easier to compare different assets.
With the separation of wicks and candle body data, a stronger move may be observed by its full-bodied movements, while a potentially more speculative move may be seen from large wick movements. Since wicks are often interpreted as either, Rejection for reversal OR as Testing for continuation, the interpretation for Wick Discovery generally varies based on context.
Discovery Index ⇾ Divergences! Due to its calculation, price (and/or volume) data is displayed in such a way that makes it useful as a tool for identifying divergence opportunities.
Remember, this indicator is lookback based. An immediate significant change from the data source (if not offset by a similar opposite change) will be represented for multiple bars after its occurrence. Due to this, data is likely to be skewed or biased from these occurrences for a period of time after.
Throughout development, "Discovery" has been shortened to just "Disco", therefore, this indicator is also an attempt to bring Disco Back.
Enjoy!
[GYTS-CE] Signal Provider | WaveTrend 4D with GDMWaveTrend 4D with Gradient Divergence Measure (Community Edition)
🌸 " 📡 Signal Provider" in GoemonYae Trading System (GYTS) 🌸
WaveTrend 4D (WT4D) is an extension of the incredible WaveTrend 3D (2022, Justin Dehorty) . This oscillator elevates the classic WaveTrend by integrating advanced mathematical models for a multi-dimensional view of market momentum, capturing subtle shifts and trends that traditional indicators might miss. Each oscillator layer uses a combination of normalised derivatives, hyperbolic tangent transformations, and dual-pole filtering (John Ehlers' SuperSmoother), providing normalised and smooth signals with minimised lag.
The name "WaveTrend 4D" is derived from the usage of 4 dimensions, representing different frequencies or timeframes. Next to the "fast", "normal" and "slow" frequency, the fourth frequency is called "lethargic" (very slow). This gives the opportunity utilise more dimensions without having abundant signals, since we quantify and filter the quality of signals.
WT4D strives to help discriminating high-quality signals from the indicator by introducing the Gradient Divergence Measure (GDM) and Quantile Median Crosses (QMC). For simplicity, speed and focus, this particular indicator includes only the GDM part. Check the other 🤲Community Edition of this indicator that focuses on the QMC. For GDM, see below for more information.
🌸 --- GRADIENT DIVERGENCE MEASURE (GDM) --- 🌸
💮 Introduction
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The GDM dynamically calculates a composite measure based on multiple factors. Unlike traditional binary divergence indicators, GDM employs a continuous value system to capture the nuanced dynamics of market behaviour. This methodology allows traders and analysts to assess the potency of divergence signals with greater precision, facilitating more informed decision-making processes.
💮 Methodology
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The GDM is calculated using a composite formula that integrates various market dynamics. At its core, it consists of six components listed below, each weighted to optimize the indicator's responsiveness to market conditions:
The magnitude of relative change between waves -- A larger difference between the waves, i.e. lower high or higher low could signify a stronger divergence.
The absolute value of the latest wave -- The strength of the latest wave provides insight into the extremity of the market conditions.
Slope of the divergence -- The slope between the two points of divergence essentially measures the rate of change in the frequency\'s value over time. It captures both the direction and the steepness of the indicator’s move between two waves.
The magnitude of relative change of the price -- A divergence means that the oscillator shows an opposite pattern than price action. Thus, if the price makes a significantly higher high or lower low, but the indicator does not, this discrepancy can be used to measure the divergence strength. This components measures the price's extrema during the crosses of the indicator's waves.
Higher timeframe's frequency trend -- Similarly, instead of looking at the price directly, this component measures the more general trend of the price by using the higher timeframe frequency (i.e. the slow frequency when looking at divergences of the normal frequency).
Time duration -- Lastly, the time duration between the two points of a divergence can also be an important factor. A divergence that spans over a longer period might indicate a more significant market sentiment shift.
💮 Tuning the GDM
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The 6 components discussed above are not independent, e.g. the slope is actually the result of the magnitude between waves, the absolute value and time duration. However, the default GDM is carefully tuned to include all these features without being too sensitive to outliers.
This makes this indicator very user-friendly. The only core parameter is the the "sensitivity". This controls the extent of normalisation between signals, and essentially affects how often strong GDMs appear. At the conservative end (higher sensitivity), the strong GDMs are less frequent but are relatively significant, while with a lower sensitivity the strong GDMs appear more frequent.
💮 GDM on the Oscillator
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The GDMs are represented by triangles and their value represents the strength. A value close to `1` signifies a strong bearish divergence and thus a possible reversal of continuation of a downtrend. Similarly, a value close to `-1` signifies a strong bullish divergence.
Note that there are two colour sets which can be enabled and disabled. One uses crosses between the fast and normal frequencies (with the slow frequency acting as the price trend with which there should be an opposite interaction -- hence a "divergence"). Similarly, crosses between the normal and slow frequencies (with the lethargic (the most slow) frequency acting as the price trend) are used to find divergences on a higher timeframe.
Another handy feature is a threshold to more strikingly visualise "strong" GDMs.
🌸 --- GOEMONYAE TRADING SYSTEM --- 🌸
As previously mentioned, this indicator is a 📡 Signal Provider, part of the suite of the GoemonYae Trading System (🤲 Community Edition). The greatest value comes from connecting multiple 📡 Signal Providers to the 🧬 Flux Composer to find confluence between signals. Contrary to most other indicators that connect with each other, the signals that are passed are not just binary signals ("buy" or "sell") but pass the actual GDM and QMC values. This gives the opportunity in the 🧬 Flux Composer to more accurately use multiple signals with different strengths to finally give an overall signal. On its turn, the Flux Composer can be connected to the GYTS "🎼 Order Orchestrator" for backtesting and trade automation.
Turbo Oscillator [RunRox]Introducing Turbo Oscillator by RunRox, our new indicator that combines a multitude of useful and unique features, which we will detail in this post.
List of Advanced Technologies:
Real-Time Divergences: Detects discrepancies between price movements and oscillator indicators to forecast potential price reversals.
Real-Time Hidden Divergences: We identify hidden divergences in real-time. These are not the standard type of divergences; they are opposite to regular divergences, providing unique insights into potential market movements.
Overbought and Oversold Zones: Identifies areas where the market is potentially overextended, suggesting possible entry and exit points.
Signal Line: Indicates the market direction, helping traders to quickly understand current trends.
Money Flow Histogram: Shows the flow of money into and out of the market, providing insights into buying and selling pressure.
Predicted Reversal Zones: Pinpoints areas where the market might experience reversals, aiding in strategic planning and risk management. These zones also serve as potential areas for taking profits, enhancing their utility for exit strategy planning.
Customizable Alerts: You can flexibly set up alerts for any events detected by our indicator, ensuring you stay informed about critical market movements.
To begin with, I would like to describe the difference between classic divergences and hidden divergences.
As you can see, these are opposite situations. Our oscillator identifies both types of divergences and displays them in real-time.
Divergences can serve as points where the price might reverse in the opposite direction, making both classic and hidden divergences powerful tools for spotting reversal points. I'll show a few examples of how divergences are used in our oscillator.
Classic Divergences - which we identify in real-time. As you can see, the price often reacts strongly to the formation of these divergences, frequently changing its direction.
Hidden Divergences - we also observe frequent movement in the opposite direction on the chart. The advantage of our indicator is that we show divergences in real-time without delays, allowing you to react immediately to trend changes.
Overbought and Oversold Zones - These zones allow you to see trend changes when the price is clearly overbought or oversold. When the color changes from a contrasting shade to a neutral one, you can observe the trend shift. The lines work by combining the positivity/negativity of the histogram, the positivity/negativity of the signal line, and the direction of the signal line (red/green). This sophisticated interaction provides precise insights into market conditions, making it an invaluable tool for traders.
Signal Line - This provides insights into trend changes and price reversals. The points on the line better indicate the beginning of a trend shift. These points can vary in size, offering a clearer understanding of the strength of the emerging trend. This feature works in combination with RSI, Stochastic, and MFI. RSI and MFI are top-tier indicators, while Stochastic adds responsiveness and sensitivity to trend changes, ensuring you capture every market movement accurately and promptly.
Money Flow Histogram - As shown in the example, our histogram displays the divergence between money flow and the actual price. You can see that while the price is rising, the money flow is decreasing, indicating insufficient demand for the asset and an imminent trend change. This feature uses MFI with an extended period, providing a more comprehensive and accurate analysis of market conditions. The extended period enhances the reliability of the Money Flow Index, making it an essential tool for identifying subtle shifts in market dynamics.
Predicted Reversal Zones - We automatically identify potential price reversal zones and display them above our overbought and oversold zones. In cases of strong overbought or oversold conditions, we detect potential price pullbacks and mark the beginning of a trend change. This helps you better identify trend shifts. We recommend considering these zones as potential take profit points for your trades.
Customizable Alerts - Our flexible alert system allows you to receive notifications only for the events you are interested in. These can include:
1. Classic Divergences
2. Hidden Divergences
3. Overbought or Oversold conditions on the status line
4. Strong Overbought or Oversold conditions on the status line
5. Signals from the signal line
6. Reversal zones in any direction
Our oscillator is a unique indicator that provides a comprehensive understanding of price movements. It can be used as a standalone tool for analyzing price action.
Here are a few examples of using our Oscillator in practice:
In the example above, you can see three conditions that have formed for a potential trade:
1. Clear overbought condition with a formed reversal point.
2. Decreasing Money Flow Index diverging from the rising price.
3. Formed classic divergence.
The entry point could be the formed divergence, while the exit point could be the overbought condition at the bottom of the oscillator along with the reversal points.
Here's another example of using hidden divergence, where you can see three conditions for a potential trade:
1. Overbought zone
2. Formed hidden divergence
3. Start of bearish movement indicated by the signal line
You can enter the trade either when the hidden divergence forms or wait for confirmation of the trend change by the signal line and enter the trade when the corresponding signal forms on the signal line. The exit point could be the opposite reversal point or the formation of a new hidden divergence.
We have demonstrated a few examples of how you can use our indicator, but we are confident that you will find many more applications in your own strategies.
Oscillator offers a variety of customizable parameters to tailor the indicator to your trading preferences. Here’s what our settings include:
Signal Line
Turn On/Off: Enable or disable the signal line.
Length: Set the length period for the signal line calculation.
Smooth: Adjust the smoothing level of the signal line for more accurate display.
Histogram
Turn On/Off: Enable or disable the histogram.
Length: Set the length period for the histogram calculation.
Smooth: Adjust the smoothing level of the histogram.
Other
Show Divergence Line: Display divergence lines on the chart.
Show Hidden Divergence: Display hidden divergences.
Show Status Line: Show the status line indicating overbought or oversold conditions.
Show TP Signal: Display signals for take profit.
Show Reversal Points: Display potential trend reversal points.
Delete Broken Divergence Lines: Remove broken divergence lines from the chart.
Alerts Customization
Signal Line Bull/Bear: Set alerts for bullish or bearish signals from the signal line.
TP Bull/Bear: Set alerts for take profit signals.
Status Bull/Bear: Set alerts for bullish or bearish status conditions.
Status Bull+/Bear+: Set enhanced alerts for stronger bullish or bearish status conditions.
Divergence Bull/Bear: Set alerts for bullish or bearish divergences.
Hidden Divergence Bull/Bear: Set alerts for hidden bullish or bearish divergences.
With these comprehensive settings, you can fine-tune the Oscillator to perfectly fit your trading strategy and preferences.
Our indicator utilizes technologies such as RSI, Stochastic, and Money Flow Index, with numerous enhancements from our team. It includes exclusive features such as real-time detection of hidden and classic divergences, identification of reversal points using our unique methodology, and much more.
Disclaimer:
While we consider our Turbo Oscillator to be an excellent tool, it is important to understand that past performance is not indicative of future results. We recommend approaching market analysis comprehensively, using a combination of tools and techniques to make well-informed trading decisions. Always consider the full range of market data and risks when using any trading indicator.
SMT/Divergence Suite (any Indicator)Hello Traders!
The TRN SMT/Divergence Suite detects divergences for any given indicator, even custom ones and divergences any two given instruments (SMT – smart money technique/tool). The indicator finds with unrivaled precision bullish and bearish as well as regular and hidden divergences. The main difference compared to other SMT/divergences indicators is that this indicator finds rigorously the extreme peaks of each swing, both in price and in the corresponding indicator/instrument. This precision is unmatched and therefore this is one of the best SMT/divergences detectors. The indicator helps traders to identify potential changes in trend before they occur.
Feature List
Works with any given custom oscillators or indicator
SMT (Smart Money Technique)/Divergence detecting for any given instruments
11 different build-in oscillators (incl. Cumulative Delta)
Customizable look and feel
The TRN SMT/Divergence Suite works with any given indicator, even custom ones. In addition, there are 11 built-in indicators. We have chosen a selection of different momentum, trend following and volume oscillators that gives you maximum flexibility. Most noticeable is the cumulative delta indicator, which works astonishingly well as a divergence indicator.
Following is the full list of the build in indicators/oscillators:
Awesome Oscillator (AO)
Commodity Channel Index (CCI)
Cumulative Delta Volume (CDV)
Chaikin Money Flow (CMF)
Moving Average Convergence Divergence (MACD)
Money Flow Index (MFI)
Momentum
On Balance Volume (OBV)
Relative Strength Index (RSI)
Stochastic
Williams Percentage Range (W%R)
The divergences are colored with vivid lines and labels. Bullish divergences are distinguished with luminous blue lines, while bearish divergences are denoted by striking red lines. Upon detecting a divergence, the colored lines act as a visual indicator for traders, signaling an imminent possibility of a trend reversal. In response, traders can leverage this valuable insight to make informed decisions in their trading activities.
Choose Your Custom Divergence Indicator
Handpick your custom indicator, and the TRN SMT/Divergence Suite will hunt for divergences in your preferred market and timeframe. Importantly, you must add the indicator to your chart. Afterwards, simply go to the “Parameters” section in the indicator settings and choose "External Indicator/SMT". If the custom indicator has one reference value, then choose this value in the “External Indicator/SMT (High)” field. If there are high and low values (e.g. candles), then you also must set the “External Indicator Low/SMT” field.
In the provided graphic, we've chosen the stochastic RSI as our example, and as you can see, the TRN SMT/Divergence Suite instantly identifies and plots bullish and bearish divergences on your chart.
Make sure that the TRN SMT/Divergence Suite is in the same panel as the custom divergence indicator and that both indicators are pinned to the same scale of your chart.
Smart Money Technique (SMT)/Divergence detecting in Relation to other Instruments
Smart Money Technique/Tool (SMT) means the divergence detection between two related instruments. The TRN SMT/Divergence Suite finds divergences in relation to other instruments, e.g. NQ vs. ES or BTCUSDT vs. ETHUSDT. Just add another instrument to the chart. As representation style you can choose lines or candles/bars. Afterwards, simply go to the “Parameters” section in the indicator settings and choose "External Indicator/SMT". If the second instrument is represented as line, then choose this value in the “External Indicator/SMT (High)” field. If there are high and low values (e.g. candles/bars), then you also must set the “External Indicator/SMT Low” field.
The detection of SMTs can help traders to decide whether the trend continues, or a reversal is imminent. E.g. if the NQ makes a new higher high but the ES fails to do so and makes a new lower high, then the TRN SMT/Divergence Suite shows a divergence. As a result, the probability is high that the trend will not continue, and the trader can make an informed decision about what to do next.
How to set Parameters for Divergence Indicators
To begin, access the indicator settings. Look for the "Parameters" section where you can fine-tune Parameters 1-3. The default settings are already optimized for the oscillators AO, RSI, CDV, W%R, MFI and Stochastic. For other divergence indicators, you might want to adjust the settings to your liking. The parameter order is the same as in the corresponding divergence indicator.
What are Divergences?
When the price of an asset moves in one direction, but its indicators move in the opposite direction, this is called a divergence. Divergences can be a powerful signal that a trend reversal is about to occur.
There are two types of regular divergences: bullish and bearish. A bullish divergence occurs when the price of an asset makes a lower low, but its indicators make a higher low. This can be a sign that the asset is oversold and that a reversal is imminent. A bearish divergence, on the other hand, occurs when the price of an asset makes a higher high, but its indicators (such as Relative Strength Index - RSI) make a lower high. This can be a sign that the asset is overbought and that a reversal is imminent.
Next to regular divergences there are hidden divergences. These divergences occur when the price of an asset moves in the opposite direction of an indicator, suggesting a possible shift in the underlying trend. In trading, hidden bearish and hidden bullish divergences are patterns that traders often look for on price charts to identify potential trend reversals or continuation patterns.
Conclusion
While signals from TRN SMT/Divergence Suite can be informative, it is important to recognize that their reliability may vary. Bearish and bullish divergences are not foolproof indicators and should be used in conjunction with other analysis techniques and risk management strategies.
Risk Disclaimer
The content, tools, scripts, articles, and educational resources offered by TRN Trading are intended solely for informational and educational purposes. Remember, past performance does not ensure future outcomes.
