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.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.