Multi-Indicator Regular and Hidden Divergence Detection

Summary

This indicator scans price pivots for regular and hidden divergence against a configurable group of momentum and volume-related indicators, including RSI, MACD and its histogram, stochastic, momentum, CCI, OBV, directional movement, volume-weighted MACD, Chaikin money flow, and money flow index. At highs, it checks for bearish divergence; at lows, it checks for bullish divergence. Users can adjust the pivot lookback, choose whether to display hidden divergences, select indicators, and set a minimum count of agreeing indicators before a signal is drawn.

The code also checks whether price and indicator values cut through the projected line between comparison points, and can show divergence counts, indicator names, pivot marks, and alerts. Signals depend on pivot identification and the selected filters, so they are not guaranteed to mark turning points in real time. The document presents an indicator implementation, not a trading strategy or empirical evaluation: it gives no backtest, signal accuracy, or risk-management evidence, and the excerpt omits part of the hidden bullish divergence logic.

Key ideas

• The indicator compares price swings with selected oscillators and volume measures to identify regular or hidden divergence.
• A minimum agreement threshold can require multiple indicators to show divergence before a signal is displayed.
• Pivot lookbacks, indicator selection, line cut-through checks, and chart labels are configurable.
• Pivot-based signals may appear only after the relevant swing is identified, and the source provides no evidence of predictive accuracy.
• The document describes a chart indicator rather than entry, exit, or risk rules for a complete strategy.

Tags

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