Participation Divergence at Index Highs

Participation Divergence at Index Highs grades every new index high against the breadth beneath it — the warning read of participation divergence at index highs. Index and witnesses are rescaled to their own lookback ranges on one 0–100 pane, where a series prints 100 exactly at a fresh high. Highs no witness confirms count as non-confirmed; enough inside a rolling window arm a regime that ends in a repair or a structure break.

How to Trade the Participation Divergence at Index Highs?

• Non-confirmed high (triangle): the index printed or pressed a high and no witness printed its own in time — leadership is narrowing.
• Armed regime (tinted background): three non-confirmed highs inside 20 bars by default — tighten risk but wait for the trigger.
• Structure break (cross): a close below the last swing low while armed — the price trigger.
• Divergence repaired (circle): every witness printed a fresh high and the regime dissolves.

Divergence requires every enabled witness to fail — disagreement reads as noise; the dashboard grades each witness, and all five events carry alerts.

Participation Divergence at Index Highs Settings

• Index Source (default close) and New-High Lookback (default 252).
• Pressing Tolerance % (default 0): bars this close to the prior high count as pressing it.
• Witness 1 (default INDEX:S5TH); Witness 2 (enabled, AMEX:RSP), with Witness 2 as Ratio to Chart Symbol (enabled).
• Participation Timeframe (default empty = chart): higher-timeframe witnesses sample the last completed bar — no repaint.
• Confirmation Window (default 10): the witness deadline.
• Persistence (default 3) and non-confirmed highs within (default 20): the arming threshold.
• Support Pivot Length (default 5): the swing low behind the structure-break trigger.
• Show Dashboard, Participation Gap Gradient, Chart Markers (all enabled); Mark Confirmed Highs (disabled).

Frequently Asked Questions

How is this different from a breadth omen signal?

Omen-style signals such as Breadth Omens are fixed warnings computed on internals alone. This build is a configurable grader: it scores each index high against your witnesses and demands a price trigger first.

Which witnesses should I use?

The defaults pair a members-above-200-day series with the equal-weight-versus-cap-weight ratio. INDEX:S5FI and INDEX:MMTH are common substitutes.

Does a persistent divergence mean the top is in?

No — divergences can persist while the index rises, so the build arms a regime rather than calling a reversal; a repair dissolves it, a structure break converts it into a price signal.