Combining Cross-Asset Divergence with Technical Confluence Filters
Summary
This strategy seeks price divergence against one of several reference series: volatility, a put-call measure, or a comparison futures contract. A bullish or bearish divergence is the baseline signal. Users can require additional confirmation from an RSI and Bollinger Band extreme, an unmitigated swing order block, cumulative volume delta divergence, or a swing failure pattern. The conditions are combined so that every enabled filter must agree before a signal is accepted. Order blocks are derived from swing pivots, and the script can compare current and higher-timeframe zones.
The strategy allows long and short entries, optional exits on opposing signals, and take-profit and stop-loss exits expressed either as percentages or ticks. Chart markers distinguish signals nested within higher-timeframe zones, and active exit levels are plotted. The source provides implementation details and default settings, but no performance results or validation across assets. Results depend on data availability and configuration; the referenced series, timeframes, delta approximation, and order-block logic merit independent review before interpreting backtests.
Key ideas
- Baseline signals compare price extremes with one of three external market series.
- Optional filters require RSI and band extremes, an order-block touch, delta divergence, or a swing failure pattern.
- All enabled filters must be satisfied for a final signal.
- Entries may be managed with opposing-signal exits and percentage-based or tick-based targets and stops.
- The script offers configurable cross-asset inputs but supplies no evidence of strategy performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.