📖Advanced RSI Divergences

Anticipate reversals and continuations, in real-time, using RSI divergences

Overview

• Divergences occur when a technical indicator, like an oscillator, moves in the opposite direction of the price.

• They often serve as an early warning of a trend reversal [via regular divergence signals] or trend continuation [via hidden divergence signals].

• Regular divergences provide an early warning signal of potential trend reversals [i.e., trend weakening].

• Hidden divergences provide an early warning signal of potential trend continuation [i.e., trend strength].

Divergences Confirmation State

• Regular and Hidden divergences flag in real-time when Potential [default] is selected as the Divergences Confirmation State.

• This feature is a leading indicator that provides the trader with an early warning of a potential trend change [regular divergences] or trend continuation [hidden divergences].

• When Confirmed is selected as the Divergence Confirmation State, regular and hidden divergences flag on a delay using a traditional 5-candle lookback period.

Divergence Signals

• RSI regular divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an 'R' below and above the RSI line, respectively.

• RSI hidden divergence signals are plotted directly on the RSI chart, with bullish and bearish divergences flagging with an 'H' below and above the RSI line, respectively.

Menu: Advanced RSI Divergences

Example: Advanced RSI Potential [Real-Time] Divergences shown with Advanced Oversold | Overbought Dots

Advanced RSI Potential Divergences shown with Advanced Oversold | Overbought Dots; click image to enlarge

Example: Advanced RSI Confirmed Divergences

TradingView: Advanced RSI Confirmed Divergences; click image to enlarge

Example 3: Advanced RSI Confirmed Divergences shown with Advanced Oversold | Overbought Dots

Advanced RSI Confirmed Divergences shown with Advanced Oversold | Overbought Dots; click image to enlarge