Peter_O

Multiple divergences NON-REPAINT by PeterO

Divergences are well-known tool for finding trend reversals. Powerful, yet... unreliable. Sometimes they show up, sometimes they don't. Sometimes they really mean trend end, sometimes the trend continues. I've witnessed countless discussions about which indicator to hunt for divergences on. All pointless.

Earlier today I found a very inspirational script by Lonesometheblue, combining multiple divergences together. Actually - summing them up and showing hunted divergences count in a label. Because if a divergence shows up on a single indicator like RSI , it can indeed mean trend reversal, but... yeah, check previous pargraph. But if this divergence shows up on 8 different indicators at the same time, then chances increase, don't they?

I decided to do my own version of Lonesome's indicator, because that one is using Label.New, which doesn't allow analysing entire script, only latest 50 occurences or so. I'm not going to hide it - I copy-pasted a lot from Lonesome's code. And from Everget's built-in divergences script, which you can find in PineScript/New. I didn't even bother to modify variable names or cover tracks in any other way, pretending it is my work from scratch. All with these two gentlemen consent and blessing. I added labels from myself, plus bit of rework and here it is:)

I hope you'll find it useful.

P.S. While analyzing divergences today, I discovered one thing. Hidden divergences are not useless, as many people think. But they should be used at trend dips to join the trend, not at trend ends, as reversals. Experiment yourself.

P.S.2 Still, never use only divergences. They need confirmation, they are not self-fulfilling prophecy.
Remove from Favorite Scripts Add to Favorite Scripts
I auto-execute TradingView Alerts into MT4/MT5 using this: https://www.tradingconnector.com. 1-second delivery.

Comments

why open source something that works? Makes it absolete once everyone starts using it...
+8 Reply
Peter_O raovida
@raovida, That's the beauty of open source, isn't it?

But seriously - read the description. Divergences are only a part of the game, you need to check trend direction, etc.
+1 Reply
Can you explain what the numbers mean on the chart?

Is it a sign if you see 2 that 2 indicators show possible divergence if its 4 then 4 indicators show possible divergence, and so on?

Thanks
+5 Reply
Peter_O ctrader1
@ctrader1, exactly. Well, actually - they ARE showing a divergence (not "possible" divergence), but will it really reverse the market, is never 100% sure.
Reply
Open-source in action! Good idea.
+4 Reply
Alerts time! ;)

Great script. Thank you
+1 Reply
Peter, thanks a lot for this great work, but i am having trouble setting alarms as too many options pop up, how about a simple alert calling negative or positive divergence
+1 Reply
Peter_O johnveluchamy
@johnveluchamy, Let's make a deal - if this script reaches 1000 likes, I'll add alerts. How does that sound?
Reply
@Peter_O, Cheers agreed. Keep up the good work.
Reply
Hey Peter, I really am enjoying the divergence indicator here! I'm not sure if this is something you've looked at, but the indicator appears to work very well with renko charts. I'd definitely recommend to take a look at that. I personally am using a brick size of 5 pips and only look at GBP/USD. I was wondering if it'd be possible for you to code alerts for this indicator. It's challenging to not have a new candle paint every "X" unit of time with renko, and is more of a hassle to stare at my computer waiting for a new brick and a divergence signal hahaha. After all, you did get the 1,000 likes you wanted ;)

If not, I completely understand and am thankful for the indicator regardless!

'
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out