RSI Divergence Signals with Pivot and Moving Average Bands

Summary

This indicator combines an RSI oscillator with price and RSI pivot tracking to flag possible bullish and bearish divergences. It also plots an RSI-based moving average, with selectable SMA, EMA, smoothed, weighted, or volume-weighted methods, and can display Bollinger Bands around that average. Adjustable RSI thresholds, source prices, and a divergence lookback period let users change the display and signal sensitivity.

The logic compares successive price extremes with RSI extremes and includes a one-bar delay for divergence signals; it also defines pivot alerts and visual options. The published settings show a short BTC-USDT futures test window, but no performance results or evaluation method are reported. The source’s final strategy entries appear to assign bearish divergence to long positions and bullish divergence to short positions, opposite the usual interpretation, and the pivot and divergence calculations should be checked before use. This is an indicator example, not evidence that the signals are profitable.

Key ideas

• The script plots RSI, an RSI-based moving average, and optional Bollinger Bands.
• It defines bullish and bearish divergence alerts by comparing price extremes with RSI behavior.
• Pivot alerts and divergence detection use a configurable lookback and delayed confirmation logic.
• The published material provides no performance statistics, and its final long and short assignments appear reversed.

Tags

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