OPEN-SOURCE SCRIPT
Updated Price Volume Divergence Signals
# Price Volume Divergence Signals
**Price Volume Divergence Signals** identifies moments when **price and volume stop moving together**, often revealing that the current trend is losing participation before price reverses.
Unlike traditional indicators that focus only on price, this script measures whether **buyers or sellers are still committing capital** to the move.
## Signals
### 🟣 P↑ V↓ — Bearish Price–Volume Divergence
Price makes a **Higher High** while volume makes a **Lower High**.
This suggests buyers managed to push price higher, but with **less participation** than before. The rally may be weakening and becoming vulnerable to a reversal or pullback.
**Interpretation**
* Higher High
* Lower Volume
* Buyer participation is fading
* Bearish warning (not a sell signal by itself)
---
### 🟢 P↓ V↓ — Bullish Price–Volume Divergence
Price makes a **Lower Low** while volume makes a **Lower Low**.
This suggests sellers managed to push price lower, but with **less participation** than during the previous decline. Selling pressure may be exhausting.
**Interpretation**
* Lower Low
* Lower Volume
* Seller participation is fading
* Bullish warning (not a buy signal by itself)
## Features
* Confirmed pivot detection (no repaint after confirmation)
* Configurable pivot strength
* Adjustable confirmation candles
* Compare either:
* Pivot candle volume
* Average volume around the pivot
* Minimum price difference filter
* Minimum volume reduction filter
* Maximum distance between pivots filter
* Optional divergence lines
* Hover tooltips explaining every signal
* TradingView alerts for bullish and bearish divergences
## How to Use
These signals work best as **early warning signs**, not standalone entry signals.
Look for confluence with:
* Support and resistance
* Liquidity sweeps
* Wyckoff Springs and Upthrusts
* RSI or MACD divergences
* Volume climaxes
* Fair Value Gaps (FVG)
* Market structure shifts (CHoCH / BOS)
The highest-probability setups occur when multiple factors align.
## Notes
A divergence **does not predict an immediate reversal**. Markets can continue trending after a divergence appears.
Wait for price confirmation before entering a trade whenever possible.
The indicator only plots **confirmed pivots**, so signals do not repaint once they are printed.
---
Simple. Clean. Focused on one question:
**Is price still being supported by participation, or is the move running out of fuel?**
**Price Volume Divergence Signals** identifies moments when **price and volume stop moving together**, often revealing that the current trend is losing participation before price reverses.
Unlike traditional indicators that focus only on price, this script measures whether **buyers or sellers are still committing capital** to the move.
## Signals
### 🟣 P↑ V↓ — Bearish Price–Volume Divergence
Price makes a **Higher High** while volume makes a **Lower High**.
This suggests buyers managed to push price higher, but with **less participation** than before. The rally may be weakening and becoming vulnerable to a reversal or pullback.
**Interpretation**
* Higher High
* Lower Volume
* Buyer participation is fading
* Bearish warning (not a sell signal by itself)
---
### 🟢 P↓ V↓ — Bullish Price–Volume Divergence
Price makes a **Lower Low** while volume makes a **Lower Low**.
This suggests sellers managed to push price lower, but with **less participation** than during the previous decline. Selling pressure may be exhausting.
**Interpretation**
* Lower Low
* Lower Volume
* Seller participation is fading
* Bullish warning (not a buy signal by itself)
## Features
* Confirmed pivot detection (no repaint after confirmation)
* Configurable pivot strength
* Adjustable confirmation candles
* Compare either:
* Pivot candle volume
* Average volume around the pivot
* Minimum price difference filter
* Minimum volume reduction filter
* Maximum distance between pivots filter
* Optional divergence lines
* Hover tooltips explaining every signal
* TradingView alerts for bullish and bearish divergences
## How to Use
These signals work best as **early warning signs**, not standalone entry signals.
Look for confluence with:
* Support and resistance
* Liquidity sweeps
* Wyckoff Springs and Upthrusts
* RSI or MACD divergences
* Volume climaxes
* Fair Value Gaps (FVG)
* Market structure shifts (CHoCH / BOS)
The highest-probability setups occur when multiple factors align.
## Notes
A divergence **does not predict an immediate reversal**. Markets can continue trending after a divergence appears.
Wait for price confirmation before entering a trade whenever possible.
The indicator only plots **confirmed pivots**, so signals do not repaint once they are printed.
---
Simple. Clean. Focused on one question:
**Is price still being supported by participation, or is the move running out of fuel?**
Release Notes
uOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.