RSI + Divergences + Alerts

The RSI + Divergences + Alerts indicator is a comprehensive momentum tool that enhances the standard Relative Strength Index with multi-color trend visualization, moving average integration, and automated divergence detection. It aims to provide traders with a clearer view of trend momentum and potential reversals through a color-coded interface and a multi-timeframe trend table.

Usage

The Usage section highlights the primary functionalities of the tool:

• Trend Visualization: The RSI line and the space between the RSI and its Moving Average (MA) are filled with four distinct colors based on whether the RSI is above/below the 50 level and whether it is currently rising or falling.
• Trend Identification: A dynamic RSI MA (supporting SMA, EMA, RMA, and WMA) is plotted to help identify trend direction. When the RSI is above the MA and rising, it indicates strong bullish momentum.
• Divergence Detection: The tool automatically identifies Regular and Hidden Bullish/Bearish divergences, plotting them directly on the RSI pane with labels.
• Multi-Timeframe (MTF) Dashboard: A table displays the RSI trend status across four different timeframes simultaneously, allowing users to confirm momentum alignment across various horizons.

Details

The indicator calculates the RSI based on user-defined periods and sources. The RSI MA angle and slope are used to determine trend strength. For divergence detection, the script looks for pivot highs and lows within a specific lookback range (defaulting to 5-60 bars) to compare price action against RSI movements. The MTF table dynamically adjusts its displayed timeframes based on the current chart interval to ensure relevant data is always visible.

Settings

Table Settings

• Show MTF RSI Trend: Toggles the visibility of the multi-timeframe dashboard.
• Table Text Size: Adjusts the size of the text within the dashboard.
• Color Settings: Customizes text and background colors for various trend states (Above/Below 50 and Growing/Falling).

RSI Settings

• RSI Period: Sets the number of bars used for the RSI calculation.
• RSI Source: Determines the price source (e.g., Close, HL2).
• Overbought/Oversold Levels: Sets the thresholds for standard and extreme RSI levels.

MA Settings

• MA Type: Selects the moving average method (SMA, EMA, RMA, WMA).
• MA Length: Sets the period for the RSI moving average.
• MA Colors: Customizes the colors for rising and falling MA states.

Divergences Settings

• Pivots Lookback: Controls the left and right strength for pivot detection.
• Range Settings: Sets the minimum and maximum bar distance to look for divergence patterns.
• Visibility Toggles: Enables or disables the plotting of Regular/Hidden Bullish and Bearish divergences.

FAQ

How do I interpret the colored fills on the RSI? The fills represent the relationship between the RSI and its MA. For example, a solid green fill typically represents the RSI being above the MA and rising, while a fading red might indicate it is below the MA but starting to rise.

What is the difference between regular and hidden divergences? Regular divergences generally signal potential trend reversals, while hidden divergences often suggest trend continuation.

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