Detects divergence before it has formed a valid divergent pivot, across multiple indicators. After publishing my Strength of Divergence Across Multiple Indicators script, it seemed there were a lot of people who wanted to see the divergence signals before the divergent pivots were actually confirmed. Everyone complains about indicators repainting, yet in the next breath they complain about not wanting to wait for a signal to be confirmed before it appears on their chart! No matter how many times you ask, you can't have your cake and eat it too.
While this isn't exactly cake, it's as close as you're gonna get. This oscillator will calculate the strength of divergence as it forms on any bar that could potentially be a pivot point (e.g. for a pivot low, the preceding bars must be higher than it) and track the net (bullish - bearish) value.
For example:
PLEASE NOTE that this is not intended to be a "Buy" or "Sell" signal, and it would be foolish to use it as such. The purpose of this script is to show you potential divergences as early as possible, so that you have more time to plan and evaluate confluent signals, etc.
The Divergence Strength Calculation:
The total divergence strength value is the sum of the divergence strengths of all indicators for which divergence was detected at a given bar. Each indicator's individual divergence strength is comprised of two basic components: (1) |ΔPrice| - the magnitude of the change in price over the divergence period (pivot-to-pivot), and (2) |ΔIndicator| - the magnitude of the change in indicator value over the divergence period.
Because different indicators' scales and volatility can vary greatly, the Δ values are expressed in terms of standard deviation to ensure that the values are meaningful and equitable across all indicators and assets/instruments/currency pairs, etc:
@HPotter, thanks! I personally think it's practically useless, but people kept saying they wanted to see divergence signals sooner, so.....
HPotter
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@reees, Trading is such a thing when the same strategy for two different people gives completely different results. Therefore, yes ... someone is trading on the moon ...
lukricky
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I wish myself can donate you to thank for your great works However, I m new here and I don’t know how the paid functions work Sorry buddy
lukricky
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Hello Rees !
azizula
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Hi @reees Think this is a great indi. I just started playing with it yesterday and see the great potential it has. I changed the Divergence Strength frm Histo to Area and it's interesting to see how the green turns to red vice versa affects the candles. Anyways, great job.
I have a small question/request. Can you or anyone here help to come out with an alert when the Divergence Strength color changes from green to red or red to green. That would be great! Thx again.