MACD AO RSI DIV Chart Divergence Indicator Multi

The Divergence Indicator Multi MACD AO RSI DIV Chart tool identifies regular bullish and bearish divergences between price action and popular oscillators to help traders anticipate potential trend reversals.

Usage

The tool is designed to highlight discrepancies between price movement and momentum. It supports multiple detection methods, allowing users to switch between the MACD histogram, Relative Strength Index (RSI), and the Awesome Oscillator (AO).

• Regular Bullish Divergence (+RD): Occurs when the price makes a lower low while the selected oscillator makes a higher low. This suggests a potential shift from a downtrend to an uptrend.
• Regular Bearish Divergence (-RD): Occurs when the price makes a higher high while the selected oscillator makes a lower high. This suggests a potential shift from an uptrend to a downtrend.

Users can adjust the Fractal Periods to determine the sensitivity of pivot point detection, effectively filtering for short-term or long-term divergence patterns.

Details

This script automates the process of finding regular divergences by comparing price pivots with the corresponding values of the selected oscillator. It specifically focuses on "Regular Divergence," which is typically used to identify trend exhaustion.

The script also features a data table that provides qualitative analysis:

• Divergence Quality: Classifies the signal as "Normal," "Good," or "Strong" based on the frequency of consecutive divergences.
• Change Phase Indicator: Checks if the oscillator crossed the zero line (phase change) between the two peaks or troughs forming the divergence, which can add significant weight to the signal.

Settings

Logic Setting

• Fractal Periods: Determines the number of bars required to confirm a high or low pivot.
• Divergence Detection Method: Selects the source oscillator for divergence logic (MACD, RSI, or AO).

Display Setting

• Show Table: Toggles the visibility of the statistical dashboard in the top right corner.
• Show Label: Enables or disables the "+RD" and "-RD" labels on the price chart.

FAQ

How do I access Divergence Indicator Multi MACD AO RSI DIV Chart?

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

Can this indicator be used on any timeframe?

Yes, the indicator can be applied to any timeframe; however, higher timeframes (like 1H, 4H, or Daily) often yield more reliable divergence signals compared to very short timeframes.

Which oscillator is best for detecting divergence?

There is no single "best" oscillator; the MACD is often used for trend-following momentum, while the RSI is preferred for overbought/oversold conditions. Users should experiment to see which matches their strategy.