Scoring Regular and Hidden Divergence Across Multiple Indicators

Summary

This indicator detects bullish and bearish regular or hidden divergence by comparing price pivots with pivots in selected technical indicators. It can include RSI, OBV, MACD, Stochastic, CCI, MFI, and Awesome Oscillator. Pivot windows, lookback limits, divergence types, and indicator selections are configurable; an option can reject a candidate when an intervening pivot breaks its trendline.

For each detected divergence, the script calculates a degree based on price and indicator changes, applies weights for the divergence type and selected indicator, and aggregates the results into a total strength and indicator count. Labels classify strength and can show which indicators contributed; alerts fire when aggregate strength exceeds a chosen threshold. The document describes implementation and display controls, not a tested trading strategy: it supplies no historical performance or evidence that stronger scores forecast reversals. Pivot confirmation uses bars after a candidate pivot, so detection necessarily involves delay, and settings affect which divergences appear.

Key ideas

• The script checks price pivots against pivots in several oscillators and volume-related indicators.
• It supports regular and hidden divergence, with configurable pivot windows and lookback limits.
• Weights for indicator contributions, price change, indicator change, and divergence type shape the aggregate score.
• Labels summarize total strength and identify the indicators contributing to a signal.
• The source offers no performance testing, and confirmation bars introduce delay into divergence detection.

Tags

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