RSI Divergence detector by Jaehee

📌 RSI DIVERGENCE DETECTOR — Instant Detection of Regular & Hidden Divergences with Color-Coded Labels

🔍 WHAT IT IS
• Detects regular and hidden divergences between price and RSI instantly, without the delay common in other divergence indicators
• Displays divergences directly on the chart with color-coded labels and connecting lines for instant visual recognition
• Uses different label colors for each divergence type so traders can identify setups at a glance

⚙️ HOW IT WORKS
• RSI Calculation — RSI is computed from a chosen price source with adjustable length
• Immediate Pivot Detection — Identifies pivots just one bar after formation for minimal delay
• RSI Delta Filter — Requires a minimum RSI difference to reduce noise and false signals
• Divergence Logic

Regular Bullish: Price lower low • RSI higher low

Regular Bearish: Price higher high • RSI lower high

Hidden Bullish: Price higher low • RSI lower low

Hidden Bearish: Price lower high • RSI higher high

• Visual Output — Connects pivot points with lines and adds labels above/below bars in colors you set

💡 WHY THIS COMBINATION
• Instant feedback — Acts faster than typical divergence tools that wait for multiple bar confirmations
• All-in-one detection — Regular and hidden divergences in the same tool
• Visual clarity — Distinct label colors make type recognition immediate
• Customizable — Adjust RSI length, pivot sensitivity, color scheme, and filtering to your style

🆚 HOW IT DIFFERS FROM COMMON DIVERGENCE INDICATORS
• Displays divergence the moment a pivot forms
• Detects both regular and hidden divergences in real time
• Applies RSI difference filtering for better quality
• Offers full color customization for each divergence type

📖 HOW TO READ IT (CONTEXT, NOT SIGNALS)
• Regular Bullish ↑ — Possible upward reversal or trend continuation after pullback
• Regular Bearish ↓ — Possible downward reversal or continuation after rally
• Hidden Bullish ↑ — Often a trend continuation signal in uptrends
• Hidden Bearish ↓ — Often a trend continuation signal in downtrends
• Always confirm with trend, momentum, or volume tools before trading

🛠 INPUTS
• RSI source and length
• Pivot lookback bars (left/right)
• Minimum RSI difference
• Custom colors for each divergence type

🎨 DESIGN NOTES
• Overlay on price chart for context
• Lines connect relevant pivots for clarity
• Labels placed near pivot highs/lows for easy spotting
• Customizable colors for personal visual preferences

⚠️ LIMITATIONS AND GOOD PRACTICE
• Divergence is not a guaranteed reversal signal
• Strong trends may override divergence setups
• False signals can occur in low volume or choppy markets
• Best used with a complete trading system and risk management

📂 DEFAULTS AND SCOPE
• Works on all OHLCV instruments and timeframes
• No repainting after pivot confirmation

💬 AUTHOR’S NOTE FOR REVIEW
This script is not a repackaging of existing tools. It integrates immediate divergence detection, hidden divergence analysis, and visual type separation into a single, customizable package. All features interact to deliver faster, clearer market context without generating trade signals or making performance claims.