Divergence Macd+RSI Fast[RSU] -- No Repaint

The Divergence Macd+RSI Fast[RSU] -- No Repaint indicator identifies and displays potential trend reversals by detecting divergences across both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) simultaneously on the candlestick chart.

Usage

The indicator is designed for traders looking for early signals of trend exhaustion. By monitoring both RSI and MACD across multiple lookback periods, it offers a more comprehensive view than standard fixed-length divergence tools.

• Bullish Divergence: Indicated by a green label ("r" for RSI, "m" for MACD) below the price action. This occurs when the price makes a lower low while the indicator makes a higher low.
• Bearish Divergence: Indicated by a red label above the price action. This occurs when the price makes a higher high while the indicator makes a lower high.
• Real-time Validation: If a detected divergence is invalidated by subsequent price movement shortly after appearing, the label will turn grey to signal an "error identification" or false signal.
• Best Practices: It is highly recommended to wait for the candle to close before confirming a divergence. Divergences occurring within a strong trend should be approached with caution as they may only represent temporary pullbacks.

Details

The script utilizes a unique "Fast" detection mechanism that triggers as soon as the indicator value shifts by a single bar from a peak or trough. To increase sensitivity, the tool simultaneously scans multiple pivot lengths:

• RSI: Scans lengths of 5, 10, and 20.
• MACD: Scans lengths of 5, 10, 20, 40, and 60.

This multi-length approach ensures that both short-term micro-divergences and longer-term structural divergences are captured. The "No Repaint" aspect is maintained by ensuring signals are calculated based on historical pivot points and current bar states, with visual indicators clearly marking if a signal is currently "not end" (unclosed).

Settings

RSI

• RSI Length: Determines the period used for the underlying RSI calculation (default is 14).

MACD

• Fast line Length: The period for the fast Exponential Moving Average (default is 12).
• Slow line Length: The period for the slow Exponential Moving Average (default is 26).
• Smooth line Length: The period for the MACD signal line (default is 9).

FAQ

How do I use this indicator for entries? Wait for a candle to close with a confirmed divergence label. For bullish entries, look for the green label and consider placing a stop loss below the recent swing low.

What do the grey labels mean? Grey labels indicate a divergence that was initially detected but failed to maintain the required indicator/price relationship, suggesting the signal is no longer valid.

How can I access Divergence Macd+RSI Fast[RSU]? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.