OPEN-SOURCE SCRIPT
Updated RSI Extreme Divergence
# RSI Extreme Divergence
An RSI divergence indicator designed to highlight only high-probability reversal signals.
Unlike standard divergence indicators, this script only detects divergences when the RSI reaches extreme conditions, helping filter out weaker signals during normal market fluctuations.
## Features
* Displays **RSI** with customizable length.
* Highlights **Overbought** and **Oversold** zones.
* Detects **Bullish Divergence** only when RSI is below the Oversold level.
* Detects **Bearish Divergence** only when RSI is above the Overbought level.
* Draws divergence lines directly on the RSI.
* Displays buy and sell arrows on both the RSI panel and the price chart.
* Includes alert support for bullish and bearish divergence signals.
## Why use this indicator?
Many divergence indicators generate too many signals during ranging markets.
This indicator focuses only on divergences that occur in extreme RSI conditions (default: above 70 or below 30), helping traders concentrate on higher-quality reversal opportunities.
## Default Settings
* RSI Length: **9**
* Pivot Length: **5**
* Overbought: **70**
* Oversold: **30**
These settings are optimized for swing trading but can be adjusted to suit different markets and trading styles.
An RSI divergence indicator designed to highlight only high-probability reversal signals.
Unlike standard divergence indicators, this script only detects divergences when the RSI reaches extreme conditions, helping filter out weaker signals during normal market fluctuations.
## Features
* Displays **RSI** with customizable length.
* Highlights **Overbought** and **Oversold** zones.
* Detects **Bullish Divergence** only when RSI is below the Oversold level.
* Detects **Bearish Divergence** only when RSI is above the Overbought level.
* Draws divergence lines directly on the RSI.
* Displays buy and sell arrows on both the RSI panel and the price chart.
* Includes alert support for bullish and bearish divergence signals.
## Why use this indicator?
Many divergence indicators generate too many signals during ranging markets.
This indicator focuses only on divergences that occur in extreme RSI conditions (default: above 70 or below 30), helping traders concentrate on higher-quality reversal opportunities.
## Default Settings
* RSI Length: **9**
* Pivot Length: **5**
* Overbought: **70**
* Oversold: **30**
These settings are optimized for swing trading but can be adjusted to suit different markets and trading styles.
Release Notes
Default settings (65/35) are optimized for Japanese stocks and swing trading. Users can freely adjust these levels to match their trading style and market conditions.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.
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.