Divergence Spotter

Key Features:

1. Advanced Divergence Detection

• Spot Buy & Sell Signals: Automatically highlights divergences between price action and popular indicators such as MACD, RSI, TRIX, and more.
• Customizable Sensitivity: Adjust bar sensitivity and lookback periods to tailor the tool to your trading style.

2. Versatility in Oscillator Support

Choose from a variety of technical indicators, including:

• MACD (Moving Average Convergence Divergence)
• Stochastic RSI
• Chaikin Money Flow
• CCI (Commodity Channel Index)
• And many others.

3. User-Friendly Visuals

• Clear Buy & Sell Markers: Visual signals plotted directly on the chart, making them impossible to miss.
• Dynamic Background Highlights: Gain an extra layer of clarity with shaded regions indicating potential trade opportunities.

4. Customizable Parameters

Fine-tune the tool’s settings, such as fast, slow, and signal periods, to optimize performance for different market conditions.

Divergence Logic:The OnBarUpdate method contains the logic to search for divergences. The method compares the highs and lows of the price with the corresponding highs and lows of the oscillator values. It calculates how many bars apart the highs and lows are and checks for divergence when the price makes a higher high while the oscillator makes a lower high (bearish divergence) or the price makes a lower low while the oscillator makes a higher low (bullish divergence).
Signal Plotting:The indicator plots buy and sell signals when a divergence is detected. The BuySignal and SellSignal are plotted as dots on the chart using different colors (blue for buy signals and pink for sell signals). The background color of the chart can also be adjusted to highlight the divergence zone.

5. Real-Time Analysis

Operates seamlessly on live data to provide actionable insights in real time.

Recommended Bar Type for Optimal Performance

To maximize the effectiveness of the Divergence Spotter V2, we recommend using Renko bars or Range bars. These bar types eliminate unnecessary noise from the charts, allowing the tool to detect divergences with enhanced precision. By focusing on price movements rather than time, Renko and Range bars can help traders achieve more accurate and reliable signals.