Advanced trading tool that detects divergences across multiple technical indicators, helping traders identify potential trend reversals and momentum shifts through comprehensive pivot point analysis.
Explore complementary indicator rolesHow it works
The divergence indicator analyzes pivot points across 16 historical price bars for multiple technical indicators like RSI, MACD, Stochastic, and CCI. It systematically checks for four types of divergences: regular positive, regular negative, hidden positive, and hidden negative.
The algorithm compares price action with corresponding indicator values, searching for discrepancies that might signal potential trend changes. It evaluates closing prices and indicator values to determine divergence conditions, providing a comprehensive multi-indicator divergence detection system. Traders can customize pivot periods, choose divergence types, and even incorporate external indicators
Why it may be useful
Divergence indicators are crucial for traders because they help identify potential trend reversals before they become apparent in price action. By comparing price movements with underlying indicator behaviors, traders can gain early insights into market momentum shifts.
These signals can reveal hidden market dynamics that might not be immediately visible through traditional price analysis. Divergences provide traders with advanced warning of potential trend exhaustion or upcoming trend changes, allowing for more strategic entry and exit points. This comprehensive approach helps reduce false signals by cross-referencing multiple indicators
When to explore it
This divergence indicator works best in trending markets with clear price movements and established momentum. Traders should use it when they want to confirm potential trend reversals or assess the strength of current market trends. It is particularly effective during swing trading and day trading scenarios where capturing early trend changes is crucial.
The indicator is most reliable when used in conjunction with other technical analysis tools and confirmatory signals. Traders should be cautious during choppy or range-bound markets where divergence signals might be less definitive. It is recommended to combine this tool with volume analysis and other technical indicators
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What we’ve verified
Reviewed 2026-10-20 · Published Pine v4 source; publication updated 5 October 2021
- Access
- Free, open-source publicationSource checked
The publication provides the Pine source for inspection.
- Alerts
- Regular and hidden divergence alertsSource checked
Six alert conditions cover positive/negative regular and hidden divergence, plus combined positive and negative signals.
- Repainting & timing
- Pivot confirmation delay; optional early signalsSource checked
Pivots require bars to their right and can be drawn back on the pivot candle. The option to skip confirmation changes the calculation from the previous candle to the current candle. Historical marker positions therefore do not show when a signal first became available.
Source review of confirmation settings, offsets and alert definitions. No live or bar-replay test was performed.
Review the creator’s publication ↗General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
