Ultimate Divergence Pro [LuxAlgo]
Title: Ultimate Divergence Pro with Trend & Volume Filter
Description:
The Ultimate Divergence Pro is a comprehensive momentum analysis tool designed to detect multi-layered discrepancies between price action and the Relative Strength Index (RSI). Unlike standard divergence scripts, this indicator combines trend, momentum, and volume validation to provide a "Solid" signal engine.
Originality and Usefulness:
This script is original because it integrates three distinct analytical layers to filter out low-probability signals:
Divergence Engine: Detects Regular (Reversal), Hidden (Continuation), and Exaggerated (Double Top/Bottom) divergences.
Trend Filter (EMA 200): Ensures that bullish signals only appear in uptrends and bearish signals in downtrends, preventing traders from "fighting the tape."
Volume Filter: Validates momentum shifts by ensuring that the signal occurs on volume that is higher than its 20-period average, confirming institutional interest.
FX Pro Logic: Implements Overbought/Oversold thresholds for regular divergences to filter out mid-range noise common in high-frequency markets.
How it works:
The indicator uses a high-speed pivot detection algorithm (configurable via the "Pivot Lookright" setting). When a pivot in the RSI is confirmed, the script checks the historical price relationship to determine the divergence type.
Features:
R (Regular): High-probability reversal signal.
H (Hidden): Trend continuation signal.
E (Exaggerated): ATR-adaptive double top/bottom momentum shifts.
Visuals: Uses short, ATR-adaptive vertical markers instead of full-background highlights for a cleaner trading interface.
Speed: Optimized for 1-bar confirmation (Speed = 1) for early entry opportunities.
Disclaimer:
Divergence trading carries inherent risks. Past performance does not guarantee future results. Always use proper risk management and stop-loss orders.
Description:
The Ultimate Divergence Pro is a comprehensive momentum analysis tool designed to detect multi-layered discrepancies between price action and the Relative Strength Index (RSI). Unlike standard divergence scripts, this indicator combines trend, momentum, and volume validation to provide a "Solid" signal engine.
Originality and Usefulness:
This script is original because it integrates three distinct analytical layers to filter out low-probability signals:
Divergence Engine: Detects Regular (Reversal), Hidden (Continuation), and Exaggerated (Double Top/Bottom) divergences.
Trend Filter (EMA 200): Ensures that bullish signals only appear in uptrends and bearish signals in downtrends, preventing traders from "fighting the tape."
Volume Filter: Validates momentum shifts by ensuring that the signal occurs on volume that is higher than its 20-period average, confirming institutional interest.
FX Pro Logic: Implements Overbought/Oversold thresholds for regular divergences to filter out mid-range noise common in high-frequency markets.
How it works:
The indicator uses a high-speed pivot detection algorithm (configurable via the "Pivot Lookright" setting). When a pivot in the RSI is confirmed, the script checks the historical price relationship to determine the divergence type.
Features:
R (Regular): High-probability reversal signal.
H (Hidden): Trend continuation signal.
E (Exaggerated): ATR-adaptive double top/bottom momentum shifts.
Visuals: Uses short, ATR-adaptive vertical markers instead of full-background highlights for a cleaner trading interface.
Speed: Optimized for 1-bar confirmation (Speed = 1) for early entry opportunities.
Disclaimer:
Divergence trading carries inherent risks. Past performance does not guarantee future results. Always use proper risk management and stop-loss orders.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.