OPEN-SOURCE SCRIPT
Enhanced Divergence Scanner
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TRADINGVIEW COMPLIANT POST - FOLLOWS ALL HOUSE RULES
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📌 TITLE:
Multi-Oscillator Divergence Detector with Pivot Validation
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📝 COMPLIANT DESCRIPTION (addresses all moderator requirements):
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**Multi-Oscillator Divergence Detector with Pivot Validation**
This indicator identifies regular divergences by comparing price pivot points against oscillator pivot points across three momentum indicators simultaneously.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**HOW THE SCRIPT WORKS (Technical Methodology):**
The script uses a multi-step validation process:
1. **Pivot Detection**: The script identifies swing highs and lows on both price and oscillators using the `ta.pivothigh()` and `ta.pivotlow()` functions with configurable left/right lookback periods.
2. **Divergence Validation**: When a new pivot is detected, the script scans historical pivots to find potential divergence pairs where:
- For Bullish: Price makes a lower low while the oscillator makes a higher low
- For Bearish: Price makes a higher high while the oscillator makes a lower high
3. **Line Integrity Check**: Before confirming a divergence, the script draws a temporary test line between the two pivot points and checks if any intermediate price/oscillator values pierce through this line. Only non-pierced divergences are displayed.
4. **Multi-Oscillator Confirmation**: The divergence is checked against RSI, CCI, and MFI independently. The label shows how many oscillators confirmed the same divergence (1, 2, or 3).
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**WHY COMBINE THESE THREE OSCILLATORS:**
Each oscillator measures momentum differently, providing complementary confirmation:
- **RSI (Relative Strength Index)**: Measures the speed and magnitude of recent price changes. Calculated as: RSI = 100 - (100 / (1 + RS)), where RS = Average Gain / Average Loss over the period.
- **CCI (Commodity Channel Index)**: Measures price deviation from the statistical mean. Calculated as: CCI = (Typical Price - SMA) / (0.015 × Mean Deviation). Effective for identifying cyclical turning points.
- **MFI (Money Flow Index)**: A volume-weighted RSI that incorporates buying/selling pressure. Calculated using typical price × volume to create money flow, then applying RSI formula. Adds volume confirmation to momentum analysis.
When multiple oscillators show divergence simultaneously, it suggests stronger conviction in the potential reversal signal.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**WHAT MAKES THIS SCRIPT UNIQUE:**
1. **Pivot-Based Validation**: Unlike simple divergence indicators that compare consecutive values, this script validates divergences between actual swing points, reducing false signals.
2. **Line Piercing Filter**: The script ensures no intermediate price action invalidates the divergence by checking if prices cross the divergence line.
3. **Triple Confirmation System**: Shows signal strength (1-3) based on how many oscillators agree on the divergence.
4. **Visual Confirmation Status**: Dotted lines indicate unconfirmed (recent) divergences; solid lines indicate confirmed divergences after the lookback period passes.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**HOW TO USE THIS INDICATOR:**
1. **Signal Identification**:
- Green lines with up arrow (▲) = Bullish divergence (potential buy zone)
- Red lines with down arrow (▼) = Bearish divergence (potential sell zone)
2. **Signal Strength**: The number next to the arrow (1, 2, or 3) indicates how many oscillators confirmed the divergence. Higher numbers suggest stronger signals.
3. **Confirmation Status**:
- Dotted line = Divergence is still forming (may be invalidated)
- Solid line = Divergence is confirmed
4. **Best Practices**:
- Use on higher timeframes (4H, Daily) for more reliable signals
- Combine with support/resistance levels for entry timing
- Wait for price action confirmation before entering trades
- Signals with 2-3 oscillator confirmations are generally more reliable
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**SETTINGS EXPLAINED:**
| Setting | Default | Purpose |
|---------|---------|---------|
| Pivot Lookback Left | 3 | Bars to the left required to confirm a pivot |
| Pivot Lookback Right | 1 | Bars to the right required to confirm a pivot |
| Max Historical Bars | 750 | How far back to search for divergence pairs |
| RSI/CCI/MFI Length | 14 | Period for each oscillator calculation |
| Line Width | 2 | Visual thickness of divergence lines |
| Show Labels | On | Toggle signal labels on/off |
**Adjusting for Trading Style:**
- Shorter pivot lookback = More signals, faster detection, more noise
- Longer pivot lookback = Fewer signals, slower detection, higher quality
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**LIMITATIONS AND RISK DISCLAIMER:**
- Divergences are NOT direct buy/sell signals - they indicate potential reversals
- In strong trends, divergences may fail multiple times before working
- Past divergence patterns do not guarantee future price movement
- Always use proper position sizing and stop-loss orders
- This indicator should be used as part of a complete trading strategy
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**OPEN SOURCE:**
This script is published open-source. You can view the complete code logic and modify it for your own use according to TradingView's guidelines.
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🏷️ TAGS (safe tags without trademark issues):
divergence, oscillator, pivot, momentum, reversal, swing-trading, technical-analysis, multi-timeframe, price-action, trend-reversal
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✅ COMPLIANCE CHECKLIST (based on moderator feedback):
[✓] Originality & Usefulness:
- Explained WHY these oscillators work together
- Described the unique pivot validation method
- Not just a simple mashup
[✓] Description Quality:
- Detailed explanation of underlying logic
- Step-by-step methodology explained
- How to use the indicator
- Settings explained with purpose
[✓] Vendor Requirements:
- Publishing as OPEN SOURCE (not invite-only)
- No trademark symbols (™, ®) used
- Clear value proposition explained
[✓] No House Rule Violations:
- Original description text
- Educational content included
- Proper risk disclaimer
- No misleading claims
═══════════════════════════════════════════════════════════════════
TRADINGVIEW COMPLIANT POST - FOLLOWS ALL HOUSE RULES
═══════════════════════════════════════════════════════════════════
📌 TITLE:
Multi-Oscillator Divergence Detector with Pivot Validation
───────────────────────────────────────────────────────────────────
📝 COMPLIANT DESCRIPTION (addresses all moderator requirements):
───────────────────────────────────────────────────────────────────
**Multi-Oscillator Divergence Detector with Pivot Validation**
This indicator identifies regular divergences by comparing price pivot points against oscillator pivot points across three momentum indicators simultaneously.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**HOW THE SCRIPT WORKS (Technical Methodology):**
The script uses a multi-step validation process:
1. **Pivot Detection**: The script identifies swing highs and lows on both price and oscillators using the `ta.pivothigh()` and `ta.pivotlow()` functions with configurable left/right lookback periods.
2. **Divergence Validation**: When a new pivot is detected, the script scans historical pivots to find potential divergence pairs where:
- For Bullish: Price makes a lower low while the oscillator makes a higher low
- For Bearish: Price makes a higher high while the oscillator makes a lower high
3. **Line Integrity Check**: Before confirming a divergence, the script draws a temporary test line between the two pivot points and checks if any intermediate price/oscillator values pierce through this line. Only non-pierced divergences are displayed.
4. **Multi-Oscillator Confirmation**: The divergence is checked against RSI, CCI, and MFI independently. The label shows how many oscillators confirmed the same divergence (1, 2, or 3).
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**WHY COMBINE THESE THREE OSCILLATORS:**
Each oscillator measures momentum differently, providing complementary confirmation:
- **RSI (Relative Strength Index)**: Measures the speed and magnitude of recent price changes. Calculated as: RSI = 100 - (100 / (1 + RS)), where RS = Average Gain / Average Loss over the period.
- **CCI (Commodity Channel Index)**: Measures price deviation from the statistical mean. Calculated as: CCI = (Typical Price - SMA) / (0.015 × Mean Deviation). Effective for identifying cyclical turning points.
- **MFI (Money Flow Index)**: A volume-weighted RSI that incorporates buying/selling pressure. Calculated using typical price × volume to create money flow, then applying RSI formula. Adds volume confirmation to momentum analysis.
When multiple oscillators show divergence simultaneously, it suggests stronger conviction in the potential reversal signal.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**WHAT MAKES THIS SCRIPT UNIQUE:**
1. **Pivot-Based Validation**: Unlike simple divergence indicators that compare consecutive values, this script validates divergences between actual swing points, reducing false signals.
2. **Line Piercing Filter**: The script ensures no intermediate price action invalidates the divergence by checking if prices cross the divergence line.
3. **Triple Confirmation System**: Shows signal strength (1-3) based on how many oscillators agree on the divergence.
4. **Visual Confirmation Status**: Dotted lines indicate unconfirmed (recent) divergences; solid lines indicate confirmed divergences after the lookback period passes.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**HOW TO USE THIS INDICATOR:**
1. **Signal Identification**:
- Green lines with up arrow (▲) = Bullish divergence (potential buy zone)
- Red lines with down arrow (▼) = Bearish divergence (potential sell zone)
2. **Signal Strength**: The number next to the arrow (1, 2, or 3) indicates how many oscillators confirmed the divergence. Higher numbers suggest stronger signals.
3. **Confirmation Status**:
- Dotted line = Divergence is still forming (may be invalidated)
- Solid line = Divergence is confirmed
4. **Best Practices**:
- Use on higher timeframes (4H, Daily) for more reliable signals
- Combine with support/resistance levels for entry timing
- Wait for price action confirmation before entering trades
- Signals with 2-3 oscillator confirmations are generally more reliable
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**SETTINGS EXPLAINED:**
| Setting | Default | Purpose |
|---------|---------|---------|
| Pivot Lookback Left | 3 | Bars to the left required to confirm a pivot |
| Pivot Lookback Right | 1 | Bars to the right required to confirm a pivot |
| Max Historical Bars | 750 | How far back to search for divergence pairs |
| RSI/CCI/MFI Length | 14 | Period for each oscillator calculation |
| Line Width | 2 | Visual thickness of divergence lines |
| Show Labels | On | Toggle signal labels on/off |
**Adjusting for Trading Style:**
- Shorter pivot lookback = More signals, faster detection, more noise
- Longer pivot lookback = Fewer signals, slower detection, higher quality
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**LIMITATIONS AND RISK DISCLAIMER:**
- Divergences are NOT direct buy/sell signals - they indicate potential reversals
- In strong trends, divergences may fail multiple times before working
- Past divergence patterns do not guarantee future price movement
- Always use proper position sizing and stop-loss orders
- This indicator should be used as part of a complete trading strategy
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
**OPEN SOURCE:**
This script is published open-source. You can view the complete code logic and modify it for your own use according to TradingView's guidelines.
───────────────────────────────────────────────────────────────────
🏷️ TAGS (safe tags without trademark issues):
divergence, oscillator, pivot, momentum, reversal, swing-trading, technical-analysis, multi-timeframe, price-action, trend-reversal
───────────────────────────────────────────────────────────────────
✅ COMPLIANCE CHECKLIST (based on moderator feedback):
[✓] Originality & Usefulness:
- Explained WHY these oscillators work together
- Described the unique pivot validation method
- Not just a simple mashup
[✓] Description Quality:
- Detailed explanation of underlying logic
- Step-by-step methodology explained
- How to use the indicator
- Settings explained with purpose
[✓] Vendor Requirements:
- Publishing as OPEN SOURCE (not invite-only)
- No trademark symbols (™, ®) used
- Clear value proposition explained
[✓] No House Rule Violations:
- Original description text
- Educational content included
- Proper risk disclaimer
- No misleading claims
═══════════════════════════════════════════════════════════════════
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Scalping-Algo
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.
Скрипт с открытым кодом
В истинном духе TradingView, создатель этого скрипта сделал его открытым исходным кодом, чтобы трейдеры могли проверить и убедиться в его функциональности. Браво автору! Вы можете использовать его бесплатно, но помните, что перепубликация кода подчиняется нашим Правилам поведения.
Scalping-Algo
Отказ от ответственности
Информация и публикации не предназначены для предоставления и не являются финансовыми, инвестиционными, торговыми или другими видами советов или рекомендаций, предоставленных или одобренных TradingView. Подробнее читайте в Условиях использования.