Integrated Reversal & Divergence Detection

The Integrated Reversal & Divergence Detection indicator (IntgRevDiv) combines two powerful technical analysis systems into one comprehensive tool:

Advanced Reversal Detection System: Identifies potential market reversals using volume analysis, RSI divergence, and smart money techniques.
Divergence Indicator System: Detects regular and hidden divergences using multiple technical indicators and fractal patterns.

This integration provides confirmation from multiple analysis methods, resulting in higher quality trading signals.

Divergence Lines
When System B detects divergences, it draws lines connecting the relevant price pivots:

Green Lines: Connect bullish divergence pivot points.
Red Lines: Connect bearish divergence pivot points.

Information Tables
The indicator displays two information tables:

System A Table (Bottom Right):

Current signal status (BUY/SELL/NEUTRAL)
Volume, RSI, and SMT divergence status.
Composite signal information.


Divergence Table (Top Right):

Divergence existence indicators (+/-).
Consecutive divergence count.
Divergence quality rating.
Phase change indicators.

This system analyzes multiple factors to detect potential market reversals:

Volume Delta Analysis:

Calculates the difference between buying and selling volume.
Detects divergence between price action and volume.
When price increases but volume decreases, it may signal weakness.


RSI Divergence Detection:

Regular Divergence: Price makes a higher high but RSI makes a lower high (bearish) or price makes a lower low but RSI makes a higher low (bullish).
Hidden Divergence: Price makes a lower high but RSI makes a higher high (bearish) or price makes a higher low but RSI makes a lower low (bullish).


Smart Money Technique (SMT):

Analyzes correlation between the current instrument and a reference symbol.
Detects divergence in the correlation that may signal institutional activity.


Balance Range & Momentum Detection:

Identifies periods of price balance before breakouts.
Detects rapid price movements that may indicate reversals.


This system also focuses exclusively on detecting divergences using:

Multiple Technical Indicators:

MACD: Momentum and trend-following indicator.
Awesome Oscillator (AO): Momentum indicator.
RSI: Oscillator showing overbought/oversold conditions.


Fractal Pattern Detection:

Identifies swing highs and lows using fractals.
Uses these pivot points to detect divergences.


Phase Change Monitoring:

Detects when the histogram switches from positive to negative or vice versa.
Provides additional confirmation of trend changes.


Consecutive Divergence Tracking:

Counts consecutive bullish/bearish divergences.

Assigns quality ratings based on the count:

1 divergence: "Normal Dive".
2 divergences: "Good Dive".
3+ divergences: "Strong Dive".


Multi-Timeframe Analysis:

Apply the indicator to multiple timeframes.
Look for alignment of signals across timeframes.
Use longer timeframes for trend direction, shorter for entry timing.


Signal Filtering Based on Quality:

For higher probability trades, only take signals when:

Divergence quality shows "Good" or "Strong".
Phase change indicators show "+" in the direction of your trade.
Multiple divergence types (Volume, RSI, SMT) show agreement.



Combining with Support/Resistance:

Use the indicator's signals near key support/resistance levels.
Buy signals near support areas have higher probability.
Sell signals near resistance areas have higher probability.


Market Regime Adaptation:

In trending markets: Focus on hidden divergences and SMT.
In ranging markets: Focus on regular divergences and RSI.
In high volatility: Increase the Volume Delta Threshold.
In low volatility: Decrease the Fractal Periods.


Signal Combination Logic Selection:

For fewer but higher quality signals: Use "Consensus" mode.
For more trading opportunities: Use "Enhanced" mode.
To emphasize price action reversals: Use "System A Priority".
To emphasize technical divergences: Use "System B Priority".


Market-Specific Adjustments:

Stocks/Indices: Focus on Volume Delta and RSI divergence.
Forex: Emphasize SMT and RSI divergence.
Crypto: Balance all three with slightly higher weight on Volume.
Commodities: Focus on MACD for divergence detection.


This indicator provides multiple layers of market analysis through its integrated approach. By understanding each component's function and how they work together, you can develop a nuanced trading strategy that takes advantage of high-probability reversal and divergence setups across various market conditions.