Divergence is a potent tool in identifying shifts in market momentum or trend reversals. A momentum divergence occurs when there's a disagreement between the direction of the price and the . For example, in an uptrend, a divergence occurs when price makes a higher high, but the indicator makes a lower low (i.e. Standard Divergence).
This indicator confirms the divergence on the 2nd candle close after the divergence is printed.
I've found that div signals a shift in momentum the best on the 1H and 4H time interval.
How to read the Indicator:
R = Regular
H = Hidden
Green divergences are
Red Divergences are
The candle colors are based on the current value.
Light Blue: If is above 70
Pink: If the is below 30
Green: If the is above 50 and below 70
Red: If the is below 50 and above 30