Wolfpack Id with Divergence

The Wolfpack Id with Divergence indicator provides a visual representation of market momentum and trend direction by utilizing a specialized oscillator and an automated divergence detection system.

Usage

The tool is primarily used to identify market trends and potential reversal points. When the oscillator is above the zero line and colored green, it indicates bullish momentum, while a red oscillator below the zero line suggests bearish momentum.

Users can look for:

• Zero Line Crosses: These signal potential shifts in trend direction.
• Pivots: Small triangles appearing on the oscillator peaks and valleys highlight localized turning points.
• Divergences: The script automatically plots "B" (Regular) and "H" (Hidden) labels. Regular divergences often suggest a potential trend reversal, while hidden divergences typically suggest trend continuation.

Details

The core of the script is based on the difference between a Fast EMA and a Slow EMA, effectively functioning as a MACD signal-style oscillator. By default, it uses a 3-period Fast Length and an 8-period Slow Length. The divergence logic compares price action (highs and lows) against the oscillator peaks and troughs within a defined lookback window to identify discrepancies between price movement and momentum.

Settings

Oscillator Settings

• Fast Length: Sets the period for the fast Exponential Moving Average.
• Slow Length: Sets the period for the slow Exponential Moving Average.

Pivot Settings

• Wolfpack Wave Pivot Lookback Right/Left: Adjusts the sensitivity for detecting the primary wave pivots on the oscillator.

Divergence Settings

• Divergence Pivot Lookback Right/Left: Determines the number of bars used to confirm a pivot point for divergence calculation.
• Max/Min of Lookback Range: Defines the bar range window within which the script searches for previous pivots to compare.
• Plotting Toggles: Allows users to enable or disable the visualization of Regular Bullish, Hidden Bullish, Regular Bearish, and Hidden Bearish divergences.

FAQ

How do I use the Wolfpack Id with Divergence?

You can use it to confirm the current trend through the zero-line relationship or anticipate reversals using the built-in divergence labels. It is often most effective when paired with other momentum oscillators or trend-following tools.

What do the "B" and "H" labels mean?

"B" stands for Regular Divergence, which is often a sign of an exhausting trend and a potential reversal. "H" stands for Hidden Divergence, which frequently indicates that the prevailing trend is likely to continue.

How can I access this tool?

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