Divergence and Pivot - Detector For Any Indicator

The Divergence and Pivot - Detector For Any Indicator indicator is a versatile analysis tool designed to identify divergence, convergence, and pivot points across any user-selected technical indicator. This provides traders with a flexible way to spot trend reversals or continuations by bridging price action analysis with external oscillator data.

Usage

The indicator functions as a wrapper for other scripts on your chart. To use it effectively:

1. Add your desired oscillator (e.g., RSI, MACD, Stochastics) to the chart.
2. Add this detector indicator to the chart.
3. Open the settings and navigate to the Oscillator Source section.
4. Select the output of the other indicator as the source.

The script will then plot marks for regular bullish/bearish divergences, hidden divergences, and standard pivot points based on that specific indicator's data.

Details

The script utilizes standard pivot detection logic to find peaks and valleys in the source indicator.

• Regular Divergence: Occurs when price makes a higher high/lower low while the indicator fails to do so, suggesting a potential trend reversal.
• Hidden Divergence: Occurs when price makes a higher low/lower high while the indicator makes a lower low/higher high, suggesting trend continuation.
• Pivots: Identified based on a defined lookback window to mark local tops and bottoms within the oscillator's movement.

Settings

Oscillator Source

• Oscillator Source: The primary input that determines which data the script analyzes for divergences and pivots.

Pivot Detect

• Pivot Show?: Toggles the visibility of pivot point markers.
• Pivot Lookback - Left / Right: Defines the number of bars to the left and right required to confirm a pivot point.

Divergence Detect

• Divergence Lookback - Left / Right: Sets the lookback period for identifying pivots used specifically in divergence calculations.
• Lookback Range - MAX / MIN: Controls the distance range (in bars) between current and previous pivots to be considered for a divergence.
• Bullish/Bearish/Hidden: Toggles for various divergence types to be displayed on the indicator.

Visual

• Bull/Bear Color: Customizes the colors used for bullish and bearish signals.
• Char Div/Pivot: Allows users to choose the characters used to represent divergences and pivots on the chart.

FAQ

How do I access Divergence and Pivot - Detector For Any Indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I use this on any timeframe? Yes, the indicator functions on any timeframe as long as there is sufficient historical data for the selected source indicator.

Why are signals appearing a few bars late? Divergence and pivot detection require "lookback" bars to the right to confirm a peak or trough. This is necessary to ensure the point is an actual local extreme and not just a temporary fluctuation.