I have some exciting news to share with you all! Recently, I came across an incredible RSI divergences indicator developed by Socrate_FR. This indicator, in my opinion has an exceptional accuracy in detecting RSI divergences. However, during my exploration of other indicators in the TradingView library that display signals on the price chart, I found that many of them were often unreliable and missed out on important divergences.One such example is the Prices / RSI Divergences Detector by vtllr. Although vtllr did an amazing job with the indicator, I noticed that it didn't capture several relevant divergences accurately.
This observation inspired me to enhance the most accurate RSI divergences indicator available by showcasing the signals directly on the price chart. By doing so, I aimed to address the issue of unreliable and missed divergences in other price chart indicators. With this enhanced version, you can now effortlessly identify and track RSI regular divergences on the price chart itself:
-Regular bullish divergence occurs when the price forms lower lows while the RSI indicator forms higher lows. It suggests a potential bullish reversal (green line plot) -Regular bearish divergence occurs when the price forms higher highs while the RSI indicator forms lower highs. It suggests a potential bearish reversal (red line plot)
Another key mofication:
This Indicator introduces a simpler approach compared to the original Socrate indicator. While Socrate differentiated divergences into eight types for both bullish and bearish scenarios, our enhanced version focuses on two distinct categories: small and big divergences. This decision was made to provide a clearer and more user-friendly experience. By condensing the divergence types into two groups, traders can easily identify and analyze the significance of the divergences without getting overwhelmed by excessive variations. The small divergences represent relatively minor divergences, while the big divergences indicate stronger and more significant signals.
-Small divergences represent relatively minor divergences (plotshape small circle) -Big divergences indicate stronger signals (plotshape big circle)
I firmly believe that this enhanced RSI Divergences Indicator will be an invaluable tool for traders who rely on RSI analysis in their trading strategies. It combines the accuracy of Socrate_FR's original indicator with the enhanced visibility of signals on the price chart, ensuring you never miss any important divergences.
If you're interested in trying out this enhanced version of the indicator, please feel free to access the open-source code. If you want to visit and try the original version of the code visit Socrate_FR profile. tradingview.com/u/Socrate_FR/
Keep attention! It is important to note that no trading indicator or strategy is foolproof, and there is always a risk of losses in trading. While this indicator may provide useful information for making conclusions, it should not be used as the sole basis for making trading decisions. Traders should always use proper risk management techniques and consider multiple factors when making trading decisions.
Support us:) If you find this new indicator helpful in your trading analysis, I would greatly appreciate your support! Please consider to follow, giving it a like, leaving feedback, or sharing it with your trading network. Your engagement will not only help me improve this tool but will also help other traders discover it and benefit from its features. Thank you for your support!
הערות שחרור
⋅
Due to popular demand, we've rolled out the following updates:
1) Alerts Addition: We've incorporated four types of alerts. When a divergence is confirmed (typically after one candle), users will be notified immediately. The new alerts are:
2) Line Adjustment: We've fixed the line width issue that wasn't consistent across all lines.
3)Filter Removal: The "Show Regular Divergences" filter has been removed. Users can now easily hide the plots using the style section of the menu.
4) Tooltip Addition: We've added a tooltip on the margin to provide clarity. The tooltip reads: "The input value determines the extent of divergence the system considers between the RSI and price. A value closer to 0 means the system will focus on immediate, smaller divergences, while a value closer to 2 will have the system consider larger, more distant divergences. Essentially, it adjusts the scope of the divergence examination. Lower values emphasize short-term divergences, while higher values prioritize long-term trends. A value of 1 strikes a good balance."
Thank you for your continued support, and we hope you find value in these updates!
does this include "hidden" divergences? not sure what the difference is - I notice there is a checkbox to show "regular" divergences - what does that do? thanks for making such a good and easy to use indicator!
Trading_Paradise
⋅
@scottedwards2000, Hello, and thank you for the positive feedback! In our indicator, we specifically include an option for 'regular' divergences to ensure there's no confusion with 'hidden' divergences, which are not taken into account in this particular tool.
The checkbox for 'regular' divergences allows you to see the traditional divergences that most traders follow, while 'hidden' divergences are typically considered a more advanced concept and require a different analytical approach.
I'm afraid I can't share an external link here, but there's plenty of free content available online that explains the difference between regular and hidden divergences. In brief, regular divergences often signal a potential trend reversal, while hidden divergences can suggest a continuation of the existing trend.
Regular Divergence:
Bullish Regular Divergence: Occurs when the price is making lower lows, but the oscillator (like RSI or MACD) is making higher lows. This discrepancy can signal that the bearish trend is losing momentum and a bullish reversal might be coming. Bearish Regular Divergence: Occurs when the price is making higher highs, but the oscillator is making lower highs. This divergence may indicate that the bullish trend is weakening, and a bearish reversal could be near. Hidden Divergence:
Bullish Hidden Divergence: Happens when the price is making higher lows, but the oscillator is making lower lows. This divergence often suggests that the underlying bullish trend is strong and likely to continue. Bearish Hidden Divergence: Occurs when the price is making lower highs, but the oscillator is making higher highs. This could indicate that the bearish trend remains robust and may persist.
I hope this provides a clear explanation, and thank you again for appreciating our indicator!
scottedwards2000
⋅
@Trading_Paradise, thanks for the quick and detailed response! So, if this tool doesn't include Hidden Divergences, then what does your "regular divergences" checkbox do then? When I check and uncheck it I don't see a change in the chart. Another couple qq's: what does "margin" do and does this work equally well on all timeframes? (I'm primarily using for Bitcoin BTW)
Trading_Paradise
⋅
@scottedwards2000, actually you are right. The purpose was to hide the divergence signals but since you can do it in the style part of the menu we didn't correct, so basically is an input no relevant. Margin instead more is close to 2 will take more in accountance distant pivot points so will create more frequently big divergences instead of small ones. It's up to you what to choose, 1 could be a good balance.
scottedwards2000
⋅
@Trading_Paradise, thanks! the line width doesn't do anything either - it's nice to see the lines though so I can see the effect of Margin. Thanks for the explanation! IN terms of time frames - it seems to work pretty well at most time frames I choose for Bitcoin. What is your and others' experience?
Trading_Paradise
⋅
@scottedwards2000, we will update soon the code with also alerts and fix also the line width. Divergences should be just a piece of the puzzle to decide whether enter or exit a trade. I kindly advise you to use more elements to build confluence and so a strategic. Unfortunately I can't digress more here and be more specific by sharing you external material/ links.
scottedwards2000
⋅
@Trading_Paradise, no problem - appreciate all the info and hard work on this. Anyone else using for Bitcoin or crypto? Would love to hear experiences and best time frames - so far 15m TF looks pretty good...
Kilian_Trading
⋅
@Trading_Paradise, i have just started using this and i find it very useful in helping me identify divergences. I see you mention you are potentially looking at enabling alerts, is this planned already? it would help a lot. I am unable to set notifictaion using trading view parameters .. maybe you have some tips? Thanks for a great script
Trading_Paradise
⋅
@Kilian_Trading, Hello sorry for late replay. We were really busy on updates on invite only indicators. By the end of this month we will update this one. At the moment there are no alerts so that's why you can't set notifications.
niccob
⋅
very useful indicator, working very well in all time frames! thanks a lot!