Divergence Variants & Confirmation

Divergence Variants & Confirmation detects regular, hidden, and exaggerated divergences on four selectable oscillators and refuses to call any a signal until price confirms. Each pattern from the divergence variant taxonomy goes pending with lines on price and oscillator, then confirms (a structure break by default) or fails; a dashboard tallies the confirm rate.

How to Trade the Divergence Variants & Confirmation?

• R / H / E tags: variant codes at the confirming swing: regular (new price extreme, fading oscillator), hidden (shallower price extreme, stronger oscillator), exaggerated (roughly equal extremes).
• ✓ on a filled label: the confirmation rule fired. The divergence bias is now actionable.
• ×3 and beyond: chains running three or more swings deep tag as multiple divergence; confirmation does not relax.
• Zone dot: printed from overbought/oversold, the classic location grade among the library's momentum tools; bounded oscillators only.

Divergence Variants & Confirmation Settings

• Oscillator (default RSI), Source (default close), Length (default 14); Stochastic Smoothing (default 3) and MACD Fast / Slow / Signal (defaults 12 / 26 / 9).
• Overbought / Oversold (defaults 70 / 30): zone levels for the bounded oscillators.
• Left Bars / Right Bars (defaults 5 / 5): swing confirmation; the right side sets the lag.
• Max Bars Between Swings (default 60): swings further apart are not compared.
• Equal-Extreme Tolerance (default 0.25): ATR multiples separating new, equal, and weaker extremes.
• Regular, Hidden, Exaggerated (all enabled): classes to track.
• Confirmation Rule (default Structure Break) and Confirmation Window (default 30): the confirming event and the allowed bars.
• Variant Dashboard (default enabled); Style toggles govern the drawings.

Frequently Asked Questions

How do regular and hidden divergence differ?

Why do labels appear bars after the swing?

What makes a pattern fail?