Oscillators Overlay w/ Divergencies/Alerts

The Oscillators Overlay w/ Divergencies/Alerts indicator projects a variety of technical momentum oscillators directly onto the price chart for integrated analysis. It provides a comprehensive suite of tools for identifying trend direction, exhaustion, and reversals through combined multi-oscillator divergence detection and customizable alerts.

Usage

The tool can be used to monitor momentum without looking away from price action. Traders can select from 15 different oscillators to overlay on the chart, such as MACD, RSI, or Stochastic.

Oscillator Overlay The selected oscillator is scaled and projected at the top or bottom of the price chart. The height and vertical offset can be adjusted in the settings to ensure visibility without obstructing price bars.

Multi-Oscillator Divergence This feature scans multiple oscillators (AO, CCI, Distance, EWO, MACD, MFI, ROC, RSI, Stochastic, and Wave Trend) for regular and hidden divergences.

• Regular Divergence: Indicates a potential trend reversal.
• Hidden Divergence: Indicates a potential trend continuation.
• Confluence Filter: Users can set a minimum number of oscillators that must agree on a divergence before a label appears on the chart, reducing noise and highlighting high-probability setups.

Alerts The script features robust alerting capabilities for the selected oscillator, including signal line crossovers, zero line crossings, overbought/oversold entry/exit, and histogram color changes.

Details

The script includes 15 oscillators:

• Awesome Oscillator (AO), Chaikin Oscillator, Commodity Channel Index (CCI)
• Distance Oscillator, Elder-Ray Bear and Bull Power
• Elliott Wave Oscillator (EWO), Klinger Oscillator
• Money Flow Index (MFI), Moving Average Convergence Divergence (MACD)
• Rate Of Change (ROC), Relative Strength Index (RSI)
• Stochastic (Stoch), Stochastic RSI (Stoch RSI)
• Volume Oscillator (Volume Osc), Wave Trend

Divergence detection logic uses pivot lookbacks to identify structural highs and lows. While most oscillators are included in the divergence scan, Chaikin, Elder-Ray, Klinger, and Volume Oscillator are excluded due to their specific calculation structures which often result in unreliable divergence signals.

Settings

• Multi-Oscillator Divergence: Controls for enabling divergence labels, setting the minimum confluence count, and toggling specific divergence types (Regular/Hidden).
• Pivot Lookback: Defines the number of bars required to confirm a price or oscillator pivot.
• Lookback Range (Min/Max): Sets the distance constraints between two pivots for a divergence to be valid.
• Pick an Oscillator: Selection menu for the primary oscillator to be projected on the chart.
• Overlay Oscillator Settings: Options to adjust the display length (up to 250 bars), vertical placement, and scaling height.
• Alert Settings: Toggles for various alert conditions based on the selected oscillator's behavior.
• Oscillator Specific Settings: Individual groups (CCI, Distance, Chaikin, etc.) allow for fine-tuning the lengths, source prices, and moving average types for each calculation.

FAQ

How can I access Oscillators Overlay w/ Divergencies/Alerts? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the "Minimum Confluence" setting for? It requires a specific number of oscillators to detect a divergence on the same bar before a label is plotted, helping filter out weak signals.

Can I see multiple oscillators at once? While only one oscillator is projected as a line on the chart at a time, the divergence detection engine simultaneously scans up to 11 different oscillators to confirm signals.