OPEN-SOURCE SCRIPT
RSI Divergence Scout
RSI Divergence Scout is a pivot-based RSI divergence study designed to mark potential disagreement between price movement and RSI momentum directly on the price chart.
The purpose of this script is to make bullish and bearish RSI divergences easier to see without requiring a separate oscillator pane or a large visual dashboard.
What the script detects
The study looks for two common RSI divergence conditions:
Bullish RSI divergence
A bullish divergence is detected when:
– price forms a confirmed pivot low below the previous confirmed pivot low
– RSI forms a higher value compared with the RSI value at the previous pivot low
– the previous RSI value was below the lower RSI context threshold
This can suggest that downside momentum is weakening, even though price has made a lower low.
Bearish RSI divergence
A bearish divergence is detected when:
– price forms a confirmed pivot high above the previous confirmed pivot high
– RSI forms a lower value compared with the RSI value at the previous pivot high
– the previous RSI value was above the upper RSI context threshold
This can suggest that upside momentum is weakening, even though price has made a higher high.
How the calculation works
The script uses confirmed pivot highs and pivot lows.
For bearish divergence, it compares the current confirmed pivot high with the previous confirmed pivot high:
– current pivot high price is higher than the previous pivot high price
– current RSI value is lower than the previous RSI value
– the previous RSI value is above the upper RSI context threshold
For bullish divergence, it compares the current confirmed pivot low with the previous confirmed pivot low:
– current pivot low price is lower than the previous pivot low price
– current RSI value is higher than the previous RSI value
– the previous RSI value is below the lower RSI context threshold
When a divergence is detected, the script draws a dashed line between the two relevant price pivots and places a label on the current confirmed pivot. The label can also show the RSI value at that pivot.
Why pivot confirmation matters
The script waits for a pivot high or pivot low to be confirmed using the selected left/right pivot sensitivity.
This means a signal appears only after the pivot is confirmed, not at the exact live high or low. This delay is intentional. It helps reduce noise and avoids marking every small candle fluctuation as a swing point.
Inputs
RSI length
Controls the RSI calculation period.
Pivot left bars
Controls how many bars to the left are required for pivot confirmation.
Pivot right bars
Controls how many bars to the right are required for pivot confirmation.
Higher pivot values produce fewer signals and focus on larger swings. Lower values produce more signals and make the script more sensitive to smaller price movements.
Upper RSI context threshold
Used as a context filter for bearish divergence. The previous pivot high RSI must be above this threshold.
Lower RSI context threshold
Used as a context filter for bullish divergence. The previous pivot low RSI must be below this threshold.
Display settings
The script allows bullish and bearish divergence labels to be shown or hidden independently. Pivot-to-pivot lines and RSI values on labels can also be enabled or disabled.
Alerts
The script includes basic alert conditions for bullish and bearish RSI divergence.
Because the script uses confirmed pivots, alerts trigger only after the pivot confirmation process is complete.
How to use it
RSI divergence should be treated as an early warning signal, not as a complete trade trigger.
A divergence can show that momentum is changing, but it does not confirm that price must reverse. In strong trends, multiple divergences can appear before price actually changes direction.
This study is most useful when combined with additional market context, such as:
– trend structure
– support and resistance
– volume behavior
– higher-timeframe direction
– risk management rules
Limitations
The script does not predict future price direction.
It does not generate complete buy or sell signals.
Pivot-based signals appear only after the pivot is confirmed.
Divergence can fail during strong trends, low-liquidity conditions or news-driven price movement.
The study should be used as one part of a broader analysis process.
Educational content only. Not financial advice.
The purpose of this script is to make bullish and bearish RSI divergences easier to see without requiring a separate oscillator pane or a large visual dashboard.
What the script detects
The study looks for two common RSI divergence conditions:
Bullish RSI divergence
A bullish divergence is detected when:
– price forms a confirmed pivot low below the previous confirmed pivot low
– RSI forms a higher value compared with the RSI value at the previous pivot low
– the previous RSI value was below the lower RSI context threshold
This can suggest that downside momentum is weakening, even though price has made a lower low.
Bearish RSI divergence
A bearish divergence is detected when:
– price forms a confirmed pivot high above the previous confirmed pivot high
– RSI forms a lower value compared with the RSI value at the previous pivot high
– the previous RSI value was above the upper RSI context threshold
This can suggest that upside momentum is weakening, even though price has made a higher high.
How the calculation works
The script uses confirmed pivot highs and pivot lows.
For bearish divergence, it compares the current confirmed pivot high with the previous confirmed pivot high:
– current pivot high price is higher than the previous pivot high price
– current RSI value is lower than the previous RSI value
– the previous RSI value is above the upper RSI context threshold
For bullish divergence, it compares the current confirmed pivot low with the previous confirmed pivot low:
– current pivot low price is lower than the previous pivot low price
– current RSI value is higher than the previous RSI value
– the previous RSI value is below the lower RSI context threshold
When a divergence is detected, the script draws a dashed line between the two relevant price pivots and places a label on the current confirmed pivot. The label can also show the RSI value at that pivot.
Why pivot confirmation matters
The script waits for a pivot high or pivot low to be confirmed using the selected left/right pivot sensitivity.
This means a signal appears only after the pivot is confirmed, not at the exact live high or low. This delay is intentional. It helps reduce noise and avoids marking every small candle fluctuation as a swing point.
Inputs
RSI length
Controls the RSI calculation period.
Pivot left bars
Controls how many bars to the left are required for pivot confirmation.
Pivot right bars
Controls how many bars to the right are required for pivot confirmation.
Higher pivot values produce fewer signals and focus on larger swings. Lower values produce more signals and make the script more sensitive to smaller price movements.
Upper RSI context threshold
Used as a context filter for bearish divergence. The previous pivot high RSI must be above this threshold.
Lower RSI context threshold
Used as a context filter for bullish divergence. The previous pivot low RSI must be below this threshold.
Display settings
The script allows bullish and bearish divergence labels to be shown or hidden independently. Pivot-to-pivot lines and RSI values on labels can also be enabled or disabled.
Alerts
The script includes basic alert conditions for bullish and bearish RSI divergence.
Because the script uses confirmed pivots, alerts trigger only after the pivot confirmation process is complete.
How to use it
RSI divergence should be treated as an early warning signal, not as a complete trade trigger.
A divergence can show that momentum is changing, but it does not confirm that price must reverse. In strong trends, multiple divergences can appear before price actually changes direction.
This study is most useful when combined with additional market context, such as:
– trend structure
– support and resistance
– volume behavior
– higher-timeframe direction
– risk management rules
Limitations
The script does not predict future price direction.
It does not generate complete buy or sell signals.
Pivot-based signals appear only after the pivot is confirmed.
Divergence can fail during strong trends, low-liquidity conditions or news-driven price movement.
The study should be used as one part of a broader analysis process.
Educational content only. Not financial advice.
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.
US stocks · RSI divergence + EMA structure tools
Custom Pine Script indicators, alerts & dashboards
Development & tools: benefitman.netlify.app
Educational only. Not financial advice.
Custom Pine Script indicators, alerts & dashboards
Development & tools: benefitman.netlify.app
Educational only. Not financial advice.
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.
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.
US stocks · RSI divergence + EMA structure tools
Custom Pine Script indicators, alerts & dashboards
Development & tools: benefitman.netlify.app
Educational only. Not financial advice.
Custom Pine Script indicators, alerts & dashboards
Development & tools: benefitman.netlify.app
Educational only. Not financial advice.
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.