Divergence-Support/Resistence

How it works

The signal uses zigzag patterns to detect pivotal price points and applies divergence analysis to identify potential trend weaknesses. It specifically focuses on hidden and regular divergences, calculating oscillator periods automatically based on zigzag length.

The script draws horizontal support and resistance lines from candles where divergence is detected, color-coding them based on bullish or bearish characteristics. By filtering out continuation and indecision pivots, the indicator provides a more focused view of significant price levels

Why it may be useful

This signal helps traders visualize key market turning points by highlighting support and resistance levels through divergence detection. It provides a nuanced approach to understanding momentum shifts by prioritizing significant divergences over minor price fluctuations.

The color-coded lines and divergence symbols offer quick visual insights into potential trend reversals. By combining multiple technical analysis libraries, the indicator creates a comprehensive tool for identifying strategic entry and exit points

When to explore it

The signal works best in markets with clear trending characteristics and moderate volatility. Traders should use it when seeking to confirm potential trend reversals or assess momentum weakness.

It is particularly effective when combined with other technical analysis tools like harmonic patterns. The indicator is most reliable in timeframes that allow sufficient price action for meaningful zigzag and divergence calculations, such as daily or 4-hour charts

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