Combining RSI Divergences with Higher-Timeframe Candle Confirmation

Summary

This MetaTrader indicator combines price and RSI divergence detection with a panel projecting higher-timeframe candles. It marks bullish divergence when price forms a lower low while RSI forms a higher low, and bearish divergence when price forms a higher high while RSI forms a lower high. Pivot settings determine how many bars are used to confirm a divergence, so confirmation can be delayed as the right-side lookback increases.

Optional filters qualify signals using RSI thresholds, the direction of the live higher-timeframe candle, and signed tick-volume Delta. The indicator can display chart arrows, divergence lines, a dashboard, and pop-up alerts; it also projects historical and forming candles with OHLC values. The document explains the configurable features but provides no backtest or performance evidence. Its signals are therefore not shown to predict reversals reliably, and live candle direction and Delta can change before the candle closes. The Delta described is derived from tick volume and direction, rather than a direct measure of exchange-wide buying and selling.

Key ideas

• Price and RSI moving in opposite directions at confirmed pivots are used to identify potential bullish or bearish divergences.
• A larger right-side pivot lookback delays confirmation while filtering some candidate pivots.
• Higher-timeframe candle direction and signed tick-volume Delta can be used to filter divergence signals.
• The indicator displays projected higher-timeframe candles, signal markers, dashboard readings, and optional alerts.
• The document supplies settings and mechanics but no evidence of predictive performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.