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Rsidivergence

The easiest way to use divergences in your own Pine strategiesDetecting divergences in a Pine indicator / strategy is easy. You simply have to compare the pivot lows and the pivot highs on the price and the oscillator, and if you can identify a difference between the last & previous pivots made on the price and the oscillator, you have likely found a divergence. Using this theory, here is an example how you would detect a Regular Bearish divergence: While the theory of divergence detection is simple, more often than not, things go wrong (the divergence indicator used in the example below is TradingView's built-in Divergence Indicator ): Would you identify this as a divergence? If not, why not? Is it because the divergence line is slicing through the candles? Or because the line is slicing through the oscillator? Or something else? Wouldn't it be great if somehow you could filter out invalid divergences from code, such as this one? We at Whitebox Software were wondering about the same thing, and decided to find a solution to this problem. This is when we realised that while detecting divergences is easy, detecting valid divergences is hard... After several months in development, we are proud to present to you our divergence indicator called The Divergent . The Divergent is an advanced divergence indicator with over 2500 lines of Pine Script, exposing over 30 different configuration options, including 9 built-in oscillators, to allow you to tweak every aspect of divergence detection to perfection. For example, the Line of Sight™ filter in The Divergent would have easily filtered out this invalid divergence above. The Line of Sight™ filter will notice any interruption to the divergence line connecting the price or the oscillator, and will treat the divergence as invalid. This filter is one of many, which has been created to reduce the false positive detections to a minimum. (In later publications, we will discuss each and every filter in detail). Alright, so The Divergent knows how to detect accurate divergences, but how is it going to help you detect divergences in your own Pine strategy? The Divergent is not simply a divergence indicator - it can also emit divergence signals * which you can catch and process in your own strategy. You can think of The Divergent being a DaaS ( D ivergences a s a S ervice)! * Please note, that divergence signals is a Pro only feature. To use the signals, simply place The Divergent onto the same chart you have your strategy on, import "The Divergent Library" into your code, link your strategy to The Divergent using a "source" input, and act on the signals produced by The Divergent ! Here is a simple strategy which incorporates divergence signals produced by The Divergent in its entry condition. The strategy will only open a position, if the moving average cross is preceded by a regular bullish or bearish divergence (depending on the direction of the cross): //@version=5 strategy("My Strategy with divergences", overlay=true, margin_long=100, margin_short=100) import WhiteboxSoftware/TheDivergentLibrary/1 as tdl float divSignal = input.source(title = "The Divergent Link", defval = close) var bool tdlContext = tdl.init(divSignal, displayLinkStatus = true, debug = false) // `divergence` can be one of the following values: // na → No divergence was detected // 1 → Regular Bull // 2 → Regular Bull early // 3 → Hidden Bull // 4 → Hidden Bull early // 5 → Regular Bear // 6 → Regular Bear early // 7 → Hidden Bear // 8 → Hidden Bear early // // priceStart is the bar_index of the starting point of the divergence line drawn on price // priceEnd is the bar_index of the ending point of the divergence line drawn on price // // oscStart is the bar_index of the starting point of the divergence line drawn on oscillator // oscEnd is the bar_index of the ending point of the divergence line drawn on oscillator = tdl.processSignal(divSignal) bool regularBullSignalledRecently = ta.barssince(divergence == 1) < 10 bool regularBearSignalledRecently = ta.barssince(divergence == 5) < 10 float slowSma = ta_sma(close, 28) float fastSma = ta_sma(close, 14) longCondition = ta.crossover(fastSma, slowSma) and regularBullSignalledRecently if (barstate.isconfirmed and longCondition and strategy.position_size == 0)   strategy.entry("Enter Long", strategy.long)   strategy.exit("Exit Long", "Enter Long", limit = close * 1.04, stop = close * 0.98)   shortCondition = ta.crossunder(fastSma, slowSma) and regularBearSignalledRecently if (barstate.isconfirmed and shortCondition and strategy.position_size == 0)   strategy.entry("Enter Short", strategy.short)   strategy.exit("Exit Short", "Enter Short", limit = close * 0.96, stop = close * 1.02) plot(slowSma, color = color.white) plot(fastSma, color = color.orange) One important thing to note, is that TradingView limits the number of "source" inputs you can use in an indicator / strategy to 1, so the source input linking your strategy and The Divergent is the only source input you can have in your strategy. There is a work around this limitation though. Simply convert the other source inputs to have a string type, and use a dropdown to provide the various sources: string mySource = input.string("My source", defval = "close", options = ) float sourceValue = switch mySource   "close" => close   "open" => open   "high" => high   "low" => low   => na --- This is where we are going to wrap up this article. We hope you will find the signals produced by The Divergent a useful addition in your own strategies! For more info on the The Divergent (Free) and The Divergent (Pro) indicators please see the linked pages. If you have any questions, don't hesitate to reach out to us either via our website or via the comment section below. If you found value in this article please give it a thumbs up! Thank you!
Education
by WhiteboxSoftware
2
Potential BTC Bounce OpportunityAlthough things have not been looking great for bitcoin these past few days, it looks like there is a possibility for a reversal over the next few days based on the current trend. For the past few months, a falling wedge has been forming (dashed green lines) for BTC inside of a larger wedge (dotted blue lines) which looks like it might be in the form of an ascending triangle pattern (both of which are bullish patterns) which may bounce around the 61.8% Fibonacci retracement level from the latest high. The bullish pattern looks further confirmed by three touches on RSI (dotted yellow line) indicating hidden, bullish, continuation divergence. If there is indeed a reversal, there is a possibility for a bounce out of the inner wedge toward the top of the outer triangle which would potentially form a cup and handle pattern if it continues to play out upward. However, I should note that if the outer triangle breaks downward (which is quite possible based on other trends such as the S&P or QQQ), then I would imagine further downtrend is in the realm of possibilities. It should be interesting to see how it plays out over the next few days and indeed feels like a somewhat trepidatious trade, however, I always feel like those moments are often the best times to make a move. But please take caution is all I can say. That being said, as always, this is not meant in any way as financial advice and is only my opinion, but please like or comment if you agree or have any further thoughts.
COINBASE:BTCUSDLong
by crypto_trends
ONTUSDT (Future) (Short)in 1 Hour time Frame -All points are marked in the chart -The bearish is clear -Determining the entry point based on the break of the trend line in the RSI indicatore. -There is a Hidden Divergence Bearish ( RSI Indicator). -A support area is also seen in the RSI Indicator. *Targets: Due to the market turmoil, several targets have been indentified and saving must be required. -profit: 10% +Disclaimer This is not financial advice. The content of this analysis is subject to change at any time without notice.
Short
by millen524
1
$CRO Divergence on D timeframe.✅COINBASE:CROUSD Before we start to discuss, I would be glad if you share your opinion on this post's comment section and hit the like button if you enjoyed it. Thank you. Possible Targets ➡️ Test support line ➡️ Forming divergence on RSI - D timeframe ➡️ Last impulsive move up to 1.20$ by end of Bull cycle Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. Don't forget sub and join my channels under this idea!
Long
by Crypto4light
Is it time to invest in China?KWEB is a China technology based ETF. Top 10 holdings by weight: Tencent Holdings ~ 10.62% Alibaba Group Holding ~ 10.32% JD.com ~ 7.21% Meituan ~ 6.99% Pinduoduo Inc ~ 6.97% NetEase Inc ~ 4.71% Baidu Inc ~ 4.27% Bilibili Inc ~ 3.83% Trip.com Group ~ 3.82% JD Health International ~ 3.32% Fundamental Analysis China’s stock market pullback this year has been in line with the average annual drawdown (approximately 30%); historically, this volatility has tended to produce double-digit annualized gains. In terms of seasonality, over the past 20 years, October has been amongst the strongest months for the Chinese stock market. Technical Analysis The 50sma has been tested as resistance 3 times before. A breakout above the 50sma could signal a significant change in trend. The RSI has shown a positive divergence, as the last three times, we tested the horizontal line (blue arrow), in each case RSI is showing higher lows.
AMEX:KWEBLong
by dorfmanmaster
4
Double Top Retracement ZoneIf you are a Double Top trader, you would know that it is not about the strategy but where it was formed. One of the struggles that traders have is, "Where is the end of the Double Top Pattern?" There are ways you can learn to identify the potential completing zone or you can wait for the Double Top to complete. Yeap, "Wait for it!!" You can then look for a shorting opportunity when the market passes 61.8% retracement and does not close above the 100% mark, in short, previous high/ violating the previous high. In this case, the first target would be the immediate low. I will exit the trade on the candle body and not at the lowest wick. Leave some tips for the waiter right? Another important filter I will need to have is an RSI Divergence. This will be something I will be creating, 1) A Weekly Education Content and at the end of the trading Week, a meet the trader session and LIVE discussion on the topic of the week. What do you think?
Short
by RaynLim
2
USDCAD - Key ResistanceUSDCAD reached the key level of resistance in the daily chart. With a pin-bar or a long shadow, the candle do get me interested in shorting it. Wait, an RSI Divergence as well? I'M ALL IN!!! Let see how it goes. While we have this kind of feeling when we spotted a trading setup that meets the analysis we have done days and weeks ago, we have to remember those losses as well. Know your stats and manage your risk well. How much would you risk for a trade like this? Comment down below.
Short
by RaynLim
Has BABA Finished Looking for Bottom?BABA showing a potential breakout from bullish RSI divergence while hitting a strong area of support on 1D timeframe. I will be watching the $145 - $138 range closely for support in the coming week. Bull Case Expect PA to retest and find resistance at the $158 region. A break, retest, and support of $158 would act as confirmation of likely further bullish momentum. Bear Case Retest and rejection at $158 could see price push below $145 - $138 support band. A break below these levels could see PA push lower to $125 - $122 areas. If $125 - $122 support is broken PA likely to reach ~ $100 level. The Trade Basis: $150.73 Stop loss: Watching for a daily close below $135 and will reevaluate then. All areas of support and resistance on chart derived from Price action, fibonacci clusters, linear regression analysis and corresponding intersection areas of aforementioned.
NYSE:BABALong
by spreck
4