Using RSI Divergence Signals to Flag Potential Reversals
Summary
The document describes a chart indicator that detects regular and hidden divergences between price swings and RSI. It marks bullish and bearish signals with arrows and labels, and offers a dashboard that counts each signal type on the current timeframe. Users can configure swing length, lookback depth, RSI period, display options, and alerts.
The document presents divergence as a way to identify possible reversals, but it gives no rules for entering or exiting trades and no performance evidence. It also does not explain how swings are selected, how divergence is validated, or what “non-repaint” means in practice. Signal counts describe what the indicator has found; they are not evidence that a signal predicts a profitable move. The tool is presented for MetaTrader 5 across instruments and timeframes, so its practical value would depend on testing its behavior and signals in the intended market.
Key ideas
- The indicator compares price swings with RSI to identify regular and hidden divergences.
- It labels bullish and bearish signals on the chart and counts each type in a dashboard.
- Users can adjust swing detection, lookback, RSI period, display settings, and alerts.
- The document provides no trading rules or performance evidence for the signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.