A dynamic divergence indicator that calculates the magnitude and potential of divergences between price action and RSI, highlighting emerging trend reversals and momentum shifts.
Explore complementary indicator rolesHow it works
The indicator measures divergence by comparing the slope of price lines against RSI lines with opposite directions. It calculates divergence magnitudes using configurable RSI lengths (default 14) and divergence range limits (3 to 28 periods).
By tracking valid divergences where price and RSI move in contrasting directions, the indicator generates a histogram representing potential trend reversal signals. The histogram colors differentiate between bullish, bearish, and hidden divergences, providing visual insight into emerging market dynamics
Why it may be useful
Divergence indicators help traders identify potential trend reversals before they fully manifest. By quantifying the magnitude of price and momentum discrepancies, traders can anticipate potential market shifts and make more informed trading decisions.
The visual representation allows quick identification of building divergence patterns, offering early warning signals that might precede significant price movements. This approach provides traders with a nuanced perspective on market momentum and potential trend changes
When to explore it
This indicator works best in markets with clear trending characteristics and moderate volatility. It is particularly useful for swing and day traders seeking early trend reversal signals. Traders should combine this indicator with other technical analysis tools to confirm potential market shifts.
It is most effective when used across multiple timeframes and when supplemented with additional confirmation indicators. Careful interpretation is crucial, as not all detected divergences will result in immediate trend reversals
Keep exploring
What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
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.
