OPEN-SOURCE SCRIPT
Updated RSI Sequential Exhaustion & Divergence
**RSI Sequential Exhaustion & Divergence — Multi-Factor Oscillator**
**What it is**
A single RSI-based reversal oscillator for spotting momentum exhaustion, then filtering and grading those signals so only the better-supported ones stand out. It is one integrated tool, not a pile of separate indicators sharing a pane.
**What it plots**
- The RSI line with a glow/gradient style coloured by momentum side, plus overbought/oversold/midline levels and an optional zone fill.
- Sequential Exhaustion signal arrows (▲/▼) at qualifying turns.
- Regular and hidden price–RSI divergence as lines and small labels, de-cluttered so the pane stays readable.
- A compact 5-row dashboard: Signal (direction · conviction % · age), RSI state, Confluence score, Context (trend/range + volatility state), and a Data-health read.
- An optional calibration panel and a set of hidden data-window outputs (EXP_*) for chaining into other scripts.
**Why these components are combined (and how they work together)**
Each part is here to fix a specific weakness of the part before it, so the result is one filtered, graded signal:
1. A bare RSI overbought/oversold reading whipsaws, and naive divergence over-fires. So the script uses two *structured* exhaustion cues instead: **Sequential Exhaustion** (the RSI makes three consecutive deeper pushes into an extreme zone and the fourth bar turns back out — a defined trigger, not just "RSI is low"), and a **divergence engine** that adds an independent reversal cue and is de-cluttered with a cooldown plus a minimum-gap filter.
2. Both cues are counter-trend by nature, and counter-trend entries fail in two situations: strong directional trends, and volatility cascades. To handle the first, an **HTF trend-bias filter** and an **ADX regime filter** suppress signals when a higher timeframe or strong ADX says the trend is intact. To handle the second, a **volatility-cluster filter** (a self-exciting intensity built from returns) proportionally raises the bar for new signals exactly when clustering makes mean-reversion most dangerous — and because it is price-only, it also works on volume-less symbols.
3. To tell which surviving signals are worth more, a **Confluence grade (0–5)** fuses five reasonably-independent reads of the same bar (HTF bias, ranging regime, a recent divergence, volume, and the RSI momentum turn). **Multi-timeframe agreement (3×/5×/15×)** is deliberately kept *separate* and applied as a conviction *multiplier* rather than blended into the score, because it is the one genuinely independent check — full agreement boosts conviction, contradiction damps it.
4. To stay honest about whether any of this is working on your symbol, a **calibration tracker** logs every signal and, after a fixed horizon, records whether price actually followed through (a move of at least X·ATR in the signal's direction), reporting a measured *past* hit-rate by grade tier with a Wilson 95% confidence interval. A **data-integrity read** (bar range, HTF-feed freshness, volume reliability) surfaces an OK / DEGRADED / CRITICAL status so the tool never silently scores on bad data.
**What is original here**
The individual techniques — RSI, divergence, ADX, ATR, volume reads, self-exciting intensity, Wilson intervals — are publicly documented. The original work is the integration: a structured RSI-exhaustion trigger gated by a proportional volatility-cluster filter, graded by a confluence score that is scaled by independent higher-timeframe agreement, and continuously audited by a built-in self-calibration tracker that reports honest past follow-through by tier. Components were chosen so each covers a distinct weakness; redundant filters were left out to keep one clear signal.
**How to use**
1. Add it to a chart. Defaults suit intraday index/futures; direction works on any symbol, while the volume confluence factor needs real traded volume.
2. Take signals in the direction the context filters allow. Prefer a higher conviction % and stronger higher-timeframe agreement; treat low-grade cues as noise (raise "Min confluence to allow signal" to suppress them).
3. Respect the volatility-cluster warning — it marks regimes where mean-reversion is most likely to fail.
4. Use the optional calibration panel as a sanity check on the tool's own past signals, never as a forward prediction.
5. Spot vs futures: a cash/spot index has no real volume. "Volume Mode" auto-detects this, and you can borrow a traded-volume series from a related futures contract; the "Data" row shows the active mode.
**Notes**
All signals and divergence confirm on closed pivots and do not repaint. Divergence labels appear "Pivot Right" bars after the turn, which is inherent to honest pivot detection.
**Disclaimer**
For education and information only. This is not financial, investment, or trading advice and guarantees no outcome. Signals describe current and past conditions; they do not predict the future. The calibration figures describe past behaviour only — they are not a backtest or a probability of future results. Volume-based readings depend on the data feed and are unreliable on instruments without real volume. Trading carries substantial risk of loss; you are solely responsible for your own decisions and risk management. Consider consulting a licensed professional.
**What it is**
A single RSI-based reversal oscillator for spotting momentum exhaustion, then filtering and grading those signals so only the better-supported ones stand out. It is one integrated tool, not a pile of separate indicators sharing a pane.
**What it plots**
- The RSI line with a glow/gradient style coloured by momentum side, plus overbought/oversold/midline levels and an optional zone fill.
- Sequential Exhaustion signal arrows (▲/▼) at qualifying turns.
- Regular and hidden price–RSI divergence as lines and small labels, de-cluttered so the pane stays readable.
- A compact 5-row dashboard: Signal (direction · conviction % · age), RSI state, Confluence score, Context (trend/range + volatility state), and a Data-health read.
- An optional calibration panel and a set of hidden data-window outputs (EXP_*) for chaining into other scripts.
**Why these components are combined (and how they work together)**
Each part is here to fix a specific weakness of the part before it, so the result is one filtered, graded signal:
1. A bare RSI overbought/oversold reading whipsaws, and naive divergence over-fires. So the script uses two *structured* exhaustion cues instead: **Sequential Exhaustion** (the RSI makes three consecutive deeper pushes into an extreme zone and the fourth bar turns back out — a defined trigger, not just "RSI is low"), and a **divergence engine** that adds an independent reversal cue and is de-cluttered with a cooldown plus a minimum-gap filter.
2. Both cues are counter-trend by nature, and counter-trend entries fail in two situations: strong directional trends, and volatility cascades. To handle the first, an **HTF trend-bias filter** and an **ADX regime filter** suppress signals when a higher timeframe or strong ADX says the trend is intact. To handle the second, a **volatility-cluster filter** (a self-exciting intensity built from returns) proportionally raises the bar for new signals exactly when clustering makes mean-reversion most dangerous — and because it is price-only, it also works on volume-less symbols.
3. To tell which surviving signals are worth more, a **Confluence grade (0–5)** fuses five reasonably-independent reads of the same bar (HTF bias, ranging regime, a recent divergence, volume, and the RSI momentum turn). **Multi-timeframe agreement (3×/5×/15×)** is deliberately kept *separate* and applied as a conviction *multiplier* rather than blended into the score, because it is the one genuinely independent check — full agreement boosts conviction, contradiction damps it.
4. To stay honest about whether any of this is working on your symbol, a **calibration tracker** logs every signal and, after a fixed horizon, records whether price actually followed through (a move of at least X·ATR in the signal's direction), reporting a measured *past* hit-rate by grade tier with a Wilson 95% confidence interval. A **data-integrity read** (bar range, HTF-feed freshness, volume reliability) surfaces an OK / DEGRADED / CRITICAL status so the tool never silently scores on bad data.
**What is original here**
The individual techniques — RSI, divergence, ADX, ATR, volume reads, self-exciting intensity, Wilson intervals — are publicly documented. The original work is the integration: a structured RSI-exhaustion trigger gated by a proportional volatility-cluster filter, graded by a confluence score that is scaled by independent higher-timeframe agreement, and continuously audited by a built-in self-calibration tracker that reports honest past follow-through by tier. Components were chosen so each covers a distinct weakness; redundant filters were left out to keep one clear signal.
**How to use**
1. Add it to a chart. Defaults suit intraday index/futures; direction works on any symbol, while the volume confluence factor needs real traded volume.
2. Take signals in the direction the context filters allow. Prefer a higher conviction % and stronger higher-timeframe agreement; treat low-grade cues as noise (raise "Min confluence to allow signal" to suppress them).
3. Respect the volatility-cluster warning — it marks regimes where mean-reversion is most likely to fail.
4. Use the optional calibration panel as a sanity check on the tool's own past signals, never as a forward prediction.
5. Spot vs futures: a cash/spot index has no real volume. "Volume Mode" auto-detects this, and you can borrow a traded-volume series from a related futures contract; the "Data" row shows the active mode.
**Notes**
All signals and divergence confirm on closed pivots and do not repaint. Divergence labels appear "Pivot Right" bars after the turn, which is inherent to honest pivot detection.
**Disclaimer**
For education and information only. This is not financial, investment, or trading advice and guarantees no outcome. Signals describe current and past conditions; they do not predict the future. The calibration figures describe past behaviour only — they are not a backtest or a probability of future results. Volume-based readings depend on the data feed and are unreliable on instruments without real volume. Trading carries substantial risk of loss; you are solely responsible for your own decisions and risk management. Consider consulting a licensed professional.
Release Notes
Just minor updatesRelease Notes
minor updateOpen-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.