OPEN-SOURCE SCRIPT
Fast RSI Divergence at VWAP Signals
# Fast RSI Divergence at VWAP Signals
Fast RSI Divergence at VWAP Signals is designed to identify early bullish and bearish RSI divergences while combining them with VWAP Standard Deviation bands to help highlight potential areas of price exhaustion.
Unlike traditional pivot-based divergence indicators that require multiple bars of confirmation, this script uses a dynamic reference-point approach. This allows divergences to be detected earlier while providing optional candle-close confirmation for traders who prefer additional validation.
## Features
• Fast bullish and bearish RSI divergence detection
• Dynamic reference-point algorithm instead of delayed pivot confirmation
• Daily anchored VWAP with configurable Standard Deviation bands
• Optional VWAP deviation filter
• Choice of wick-based or close-based divergence detection
• Optional candle-close confirmation
• Optional RSI momentum turn confirmation
• Optional candle direction confirmation
• Adjustable cooldown between consecutive signals
• Optional display of divergence reference points
• Built-in BUY and SELL alerts
## How It Works
The indicator continuously monitors RSI for overbought and oversold conditions.
When RSI reaches an extreme, a reference point is created. Instead of waiting for a confirmed pivot, the script immediately compares subsequent price action against that reference.
A bearish divergence is detected when:
• Price makes a higher high
• RSI forms a lower high
A bullish divergence is detected when:
• Price makes a lower low
• RSI forms a higher low
Additional filters can be enabled to require:
• Price touching or closing outside the selected VWAP Standard Deviation band
• RSI beginning to reverse direction
• Confirmation from candle direction
• Candle-close confirmation before the signal becomes final
After each confirmed signal, the reference point is automatically updated to prevent repeated signals from the same price movement.
## Recommended Usage
This indicator is designed to work best as part of a confluence-based trading approach rather than as a standalone signal generator.
For additional confirmation, it is recommended to use it together with **Bollinger Bands**. Confluence between RSI divergence, VWAP Standard Deviation extremes, and Bollinger Band extremes can help identify areas where price may be statistically extended.
Examples of higher-confluence setups include:
• Bullish RSI divergence occurring near both the lower VWAP Standard Deviation band and the lower Bollinger Band.
• Bearish RSI divergence occurring near both the upper VWAP Standard Deviation band and the upper Bollinger Band.
Additional confirmation from market structure, trend direction, support and resistance, or volume analysis may further improve trade selection.
## Inputs
The indicator provides extensive customization, including:
• RSI Length
• Overbought and Oversold Levels
• Maximum Divergence Lookback
• Minimum RSI Difference
• Minimum Price Extension
• VWAP Standard Deviation Multipliers
• Wick or Close Validation
• Candle Close Confirmation
• RSI Turn Confirmation
• Candle Direction Confirmation
• Signal Cooldown
• Display Options
## Alerts
Two alert conditions are included:
• Fast RSI Divergence BUY
• Fast RSI Divergence SELL
These alerts can be used with TradingView's alert system or external automation.
## Notes
This indicator is intended to highlight potential momentum exhaustion near statistically extended price levels. Divergence signals indicate that momentum and price are no longer moving in sync, but they do not necessarily imply an immediate reversal.
As with any technical analysis tool, signals should be interpreted within the broader market context. No indicator can predict future price movements with certainty.
Fast RSI Divergence at VWAP Signals is designed to identify early bullish and bearish RSI divergences while combining them with VWAP Standard Deviation bands to help highlight potential areas of price exhaustion.
Unlike traditional pivot-based divergence indicators that require multiple bars of confirmation, this script uses a dynamic reference-point approach. This allows divergences to be detected earlier while providing optional candle-close confirmation for traders who prefer additional validation.
## Features
• Fast bullish and bearish RSI divergence detection
• Dynamic reference-point algorithm instead of delayed pivot confirmation
• Daily anchored VWAP with configurable Standard Deviation bands
• Optional VWAP deviation filter
• Choice of wick-based or close-based divergence detection
• Optional candle-close confirmation
• Optional RSI momentum turn confirmation
• Optional candle direction confirmation
• Adjustable cooldown between consecutive signals
• Optional display of divergence reference points
• Built-in BUY and SELL alerts
## How It Works
The indicator continuously monitors RSI for overbought and oversold conditions.
When RSI reaches an extreme, a reference point is created. Instead of waiting for a confirmed pivot, the script immediately compares subsequent price action against that reference.
A bearish divergence is detected when:
• Price makes a higher high
• RSI forms a lower high
A bullish divergence is detected when:
• Price makes a lower low
• RSI forms a higher low
Additional filters can be enabled to require:
• Price touching or closing outside the selected VWAP Standard Deviation band
• RSI beginning to reverse direction
• Confirmation from candle direction
• Candle-close confirmation before the signal becomes final
After each confirmed signal, the reference point is automatically updated to prevent repeated signals from the same price movement.
## Recommended Usage
This indicator is designed to work best as part of a confluence-based trading approach rather than as a standalone signal generator.
For additional confirmation, it is recommended to use it together with **Bollinger Bands**. Confluence between RSI divergence, VWAP Standard Deviation extremes, and Bollinger Band extremes can help identify areas where price may be statistically extended.
Examples of higher-confluence setups include:
• Bullish RSI divergence occurring near both the lower VWAP Standard Deviation band and the lower Bollinger Band.
• Bearish RSI divergence occurring near both the upper VWAP Standard Deviation band and the upper Bollinger Band.
Additional confirmation from market structure, trend direction, support and resistance, or volume analysis may further improve trade selection.
## Inputs
The indicator provides extensive customization, including:
• RSI Length
• Overbought and Oversold Levels
• Maximum Divergence Lookback
• Minimum RSI Difference
• Minimum Price Extension
• VWAP Standard Deviation Multipliers
• Wick or Close Validation
• Candle Close Confirmation
• RSI Turn Confirmation
• Candle Direction Confirmation
• Signal Cooldown
• Display Options
## Alerts
Two alert conditions are included:
• Fast RSI Divergence BUY
• Fast RSI Divergence SELL
These alerts can be used with TradingView's alert system or external automation.
## Notes
This indicator is intended to highlight potential momentum exhaustion near statistically extended price levels. Divergence signals indicate that momentum and price are no longer moving in sync, but they do not necessarily imply an immediate reversal.
As with any technical analysis tool, signals should be interpreted within the broader market context. No indicator can predict future price movements with certainty.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
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Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.