multiple consecutive regular divergences
This indicator helps you to display multiple consecutive regular divergences.
- Ability to detect single, double and triple divergences (consecutive divergences)
A (bearish) single divergence occurs when the price peaks higher than the previous peak, but the oscillator value (e.g. RSI) decreases.
These conditions are a sign of reduced demand and there is a possibility of a price drop.
Although a single divergence indicates a decrease in demand, it alone cannot be a strong signal of change in price direction.
Sometimes after a divergence, we see the formation of another divergence. The price continues to grow and experience a higher peak, while the RSI value continues to decrease.
The formation of the second divergence (double divergence) indicates a further decrease in buyers and this signal will be more reliable.
In addition to single divergence, this indicator can also identify double and triple divergences.
multiple divergences are shaping after one another and can potentially improve the signal quality, compared to single divergences.
The pivot at the beginning of each divergence coincides with the pivot at the end of the previous divergence.
Check the divergence between the current pivot and all previous pivots in the desired range and not being limited to the previous pivot
Most divergence detection indicators measure divergence conditions between the current peak (valley) and only the previous peak (valley), so some divergences may not be correctly detected due to some internal minor peaks (valleys).
But in this indicator, the current peak (valley) is compared with all previous peaks (valleys).
optional parameters
A candle is considered as a peak (valley) whose high (low) value is higher (lower) than 5 candles before and after it. This number (pivot period) can be changed from the indicator settings.
At the last peak to receive the signal, 5 candles should be formed after the peak to have a fixed peak, which may lead to a delay in the signal. For faster detection of divergence, the number of candles required to stabilize the last peak (last pivot confirm candles) is optional and can be considered different from the pivot period.
In order to eliminate divergences that occur between two very close or very far peaks (valleys), you can change the minimum and maximum allowed distance between two peaks (valleys).
The divergence line drawn between the two peaks may touch the candles between the two peaks.
If the rejected touch is in the candle mode, any collision of the divergence line with any middle candle will cause rejection of the divergence.
But if the rejected touch is in body mode, the collision of the divergence line with the shadow of the candles is ineffective in detecting the divergence, and only the collision of the divergence line with the body of the candles will reject the divergence.
Optional oscillator for divergence detection
Instead of RSI oscillator, you can also use CCI or MACD. The settings of each oscillator can also be changed.
Setting alarms and receiving alerts when divergence is confirmed
Draw three divergences in three different colors
- Ability to detect single, double and triple divergences (consecutive divergences)
A (bearish) single divergence occurs when the price peaks higher than the previous peak, but the oscillator value (e.g. RSI) decreases.
These conditions are a sign of reduced demand and there is a possibility of a price drop.
Although a single divergence indicates a decrease in demand, it alone cannot be a strong signal of change in price direction.
Sometimes after a divergence, we see the formation of another divergence. The price continues to grow and experience a higher peak, while the RSI value continues to decrease.
The formation of the second divergence (double divergence) indicates a further decrease in buyers and this signal will be more reliable.
In addition to single divergence, this indicator can also identify double and triple divergences.
The pivot at the beginning of each divergence coincides with the pivot at the end of the previous divergence.
Check the divergence between the current pivot and all previous pivots in the desired range and not being limited to the previous pivot
Most divergence detection indicators measure divergence conditions between the current peak (valley) and only the previous peak (valley), so some divergences may not be correctly detected due to some internal minor peaks (valleys).
But in this indicator, the current peak (valley) is compared with all previous peaks (valleys).
optional parameters
A candle is considered as a peak (valley) whose high (low) value is higher (lower) than 5 candles before and after it. This number (pivot period) can be changed from the indicator settings.
At the last peak to receive the signal, 5 candles should be formed after the peak to have a fixed peak, which may lead to a delay in the signal. For faster detection of divergence, the number of candles required to stabilize the last peak (last pivot confirm candles) is optional and can be considered different from the pivot period.
In order to eliminate divergences that occur between two very close or very far peaks (valleys), you can change the minimum and maximum allowed distance between two peaks (valleys).
The divergence line drawn between the two peaks may touch the candles between the two peaks.
If the rejected touch is in the candle mode, any collision of the divergence line with any middle candle will cause rejection of the divergence.
But if the rejected touch is in body mode, the collision of the divergence line with the shadow of the candles is ineffective in detecting the divergence, and only the collision of the divergence line with the body of the candles will reject the divergence.
Optional oscillator for divergence detection
Instead of RSI oscillator, you can also use CCI or MACD. The settings of each oscillator can also be changed.
Setting alarms and receiving alerts when divergence is confirmed
Draw three divergences in three different colors