Divergence Detector

📈 Divergence Detector – Pine Script Indicator

🎯 Purpose

Detects bullish/bearish divergences between price and:

• 📊 WaveTrend
  
• 📈 RSI (Relative Strength Index)
  
• 📉 Stochastic Oscillator
  

Divergences signal potential trend reversals.

✨ Features & Advantages

✅ Multi-Indicator Analysis – checks 3 oscillators simultaneously.
✅ Customizable Filters – min. divergence length & distance between signals.
✅ Clean Visuals – colored lines + labels for clarity.
✅ Alerts – get notified when divergences appear.

⚙️ Settings

🔹 General

• Pivot Lookback (15) – pivot detection depth.
  
• Max Bars to Look Back (50) – limits divergence search range.
  
• Min Divergence Length (6) – avoids noise.
  
• Min Distance Between Signals (10) – prevents signal overcrowding.
  

🔹 Indicators

WaveTrend:

• Channel Length (9)
  
• Average Length (12)
  
• MA Length (3)
  

RSI: Length (14)

Stochastic:

• Length (14)
  
• K Smoothing (3)
  

🔹 Colors & Style

• Bullish (🟢 Green)
  
• Bearish (🔴 Red)
  
• Line Width (2)
  
• Show Labels (ON/OFF)
  

📖 How to Use?

1. Bullish Divergence 🟢:

• Price → Lower Lows | Oscillator → Higher Lows = Potential UP reversal.
  

2. Bearish Divergence 🔴:

• Price → Higher Highs | Oscillator → Lower Highs = Potential DOWN reversal.
  

3. Alerts – enable in TradingView.

⚠️ Limitations

❌ False signals – not every divergence leads to a reversal.
❌ Lagging – pivot-based detection delays signals.
❌ Chart clutter – too many lines if unchecked.

💡 Pro Tips

✔ Combine with support/resistance levels.
✔ Avoid using alone on low timeframes (M1-M15).
✔ Adjust settings for your trading style (e.g., increase Min Divergence Length for daily charts).

❤️ Support This Project

If you find this indicator helpful and want to support future developments, donations are appreciated at:

USDT (TRC20): THFFLEZSpTqapYF6oj9rmuTCQVUXvuz7VS

Your generosity helps maintain and improve free indicators for the trading community!