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?

Which witnesses should I use?

Does a persistent divergence mean the top is in?