Divergence Screener [Mr_Zed]

The Divergence Screener [Mr_Zed] indicator provides a comprehensive dashboard for scanning up to 40 different assets and timeframes simultaneously to detect bullish and bearish RSI divergences.

Usage

The Usage section focuses on monitoring broad market conditions across multiple symbols without manually switching charts. When a divergence is identified on any of the configured assets, the tool provides visual feedback or alerts.

• Multi-Asset Scanning: Input different tickers and timeframes to create a custom watchlist.
• Divergence Detection: The script specifically looks for regular bullish (lower low in price, higher low in RSI) and regular bearish (higher high in price, lower high in RSI) patterns.
• Real-time Alerts: Users can set alerts to be notified immediately when a potential or confirmed divergence occurs on any asset in the list.

Details

The script utilizes the request.security() function to fetch data for the user-defined assets. It identifies pivot points in the Relative Strength Index (RSI) using a specified lookback window. A divergence is confirmed when the price creates a new extreme (higher high or lower low) that is not reflected by the RSI oscillator within a specific bar range.

The logic distinguishes between "potential" and "confirmed" divergences; a confirmed divergence is only triggered once the bar has closed, ensuring the pivot point is finalized.

Settings

DS Settings

• RSI Period: Determines the length of the RSI calculation (default is 14).
• RSI Source: The price data point used for the RSI (e.g., Close, Open, High, Low).
• Pivot Lookback Right: The number of bars to the right required to confirm a pivot point.
• Pivot Lookback Left: The number of bars to the left required to identify a pivot point.
• Max of Lookback Range: The maximum distance in bars allowed between two pivots to qualify for a divergence.
• Min of Lookback Range: The minimum distance in bars allowed between two pivots.

Screener

• Asset (01-40): The specific symbol or ticker to scan.
• TimeFrame (01-40): The specific timeframe for the corresponding asset.

FAQ

How do I access the Divergence Screener [Mr_Zed]? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I scan different timeframes for the same asset? Yes, you can input the same ticker in multiple asset slots and select different timeframes for each to see how divergences develop across various horizons.

Why does the indicator show a "Potential" divergence? A potential divergence is signaled when the conditions are met on an open bar. This can disappear if the price or RSI movements change before the candle closes. Confirmed signals only appear after the bar close.