Divergence is specified as:
- A higher price, with reduced --> Potential Sell Point
- A lower price, with higher --> Potential Buy Point
Divergence should be used in combination with other indicators. This indicator identifies local tops and bottoms, with potential for macro trend shifts.
Read more about trading Divergence on Investopedia here: https://www.investopedia.com/trading/tra...
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.