Multiple Divergences (UDTs - objects) - Educational

The Multiple Divergences (UDTs - objects) indicator identifies bullish and bearish regular divergences across multiple oscillators by utilizing pivot points and User-defined Types (UDTs) for precise historical tracking. This tool provides a multi-layered approach to trend reversal identification by cross-referencing price action pivots with the RSI, CCI, and MFI indicators.

Usage

The script detects regular divergences when price creates a higher high (bearish) or lower low (bullish) while the selected oscillators fail to confirm the move.

• Oscillator Selection: Users can toggle RSI, CCI, and MFI independently. If a divergence is found on multiple oscillators simultaneously, a label will appear indicating the count (e.g., a "3" means all three oscillators confirmed the divergence).
• Confirmation: Divergences are calculated based on pivot points defined by the "Left" and "Right" settings. A divergence is "unconfirmed" and represented by a dotted line until the right-hand side of the pivot is fully established. Once confirmed, the line becomes solid.
• Pivot Filtering: The tool uses a unique "testline" logic to ensure that no intermediate price action pierces the trendline connecting the two pivot points, filtering out noisy or invalid divergence signals.

Details

This indicator is built using Pine Script™ User-defined Types (UDTs) and objects. On every bar, a custom object is created to store price data (High/Low) and oscillator values. These objects are stored in arrays with a configurable maximum size.

The execution logic follows these steps:

1. Identify a price pivot high or low.
2. Draw an internal "testline" to previous pivots stored in the array.
3. Check if any intermediate bars pierce this testline.
4. If the price testline is valid, search for a corresponding oscillator pivot within a 1-bar proximity.
5. Validate the oscillator trend using a similar testline check to ensure no "piercing" occurred in the oscillator's path.

Settings

General Settings

• Left: The number of bars to the left of a pivot that must be lower/higher than the pivot bar.
• Right: The number of bars to the right of a pivot used for confirmation.
• Max values: Controls the maximum size of the object arrays to manage memory and performance.

Oscillators (+ length)

• RSI / CCI / MFI Toggle: Enables or disables the specific oscillator for divergence detection.
• Length: The lookback period for the respective oscillator calculation.
• Color Bullish/Bearish: Customizes the color of the divergence lines for each specific indicator.

FAQ

How do I access Multiple Divergences (UDTs - objects)?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why are some divergence lines dotted?

Dotted lines indicate a divergence that has been detected but is not yet confirmed by the required number of bars to the right (the "Right" setting). They become solid once the pivot is confirmed.

Can I use this for hidden divergences?

No, this specific tool is designed to identify regular divergences, which are typically used to spot potential trend reversals rather than trend continuations.