OPEN-SOURCE SCRIPT
PSS Divergence RSI
The objective of the script is to identify the divergences (positive / negative) and visualize them as an indicator to easily spot the possible trend change.
Ingredients -
a. 34 period RSI at current candle
b. 34 period RSI at 21 candles back
c. 5 EMA of a
d. 5 EMA of b
e. 5 EMA of current candle
f. 5 EMA of 21 candles back
Description -
The indicator is designed for scalping and to smooth-out the noise in shorter timeframe (1 min), bigger period (34) is used for RSI calculation.
The core idea of divergence is to look at RSI movement in relation to price movement, hence a ratios are created for RSI value relative to it's price.
R1 = rsiMA1*100/priceMA1
R2 = rsiMA2*100/priceMA2
Some mathematics is applied over the calculated ratios to determine if there is bullish or bearish divergence -
Div = (R1-R2)*100/(R1+R2)
The reasoning to apply 5 EMA to price as well as RSI is to compare areas (5 candles) instead of single point comparison for better insights.
The value above zero line is considered positive divergence and below zero line is negative divergence.
Recommended to combine with Pivot Points, Fibonacci or Gann levels as confirmation to enter the trade.
Reviews / feedbacks are most welcome !
Prasad Shenwai
prasad.s.shenwai@gmail.com
Ingredients -
a. 34 period RSI at current candle
b. 34 period RSI at 21 candles back
c. 5 EMA of a
d. 5 EMA of b
e. 5 EMA of current candle
f. 5 EMA of 21 candles back
Description -
The indicator is designed for scalping and to smooth-out the noise in shorter timeframe (1 min), bigger period (34) is used for RSI calculation.
The core idea of divergence is to look at RSI movement in relation to price movement, hence a ratios are created for RSI value relative to it's price.
R1 = rsiMA1*100/priceMA1
R2 = rsiMA2*100/priceMA2
Some mathematics is applied over the calculated ratios to determine if there is bullish or bearish divergence -
Div = (R1-R2)*100/(R1+R2)
The reasoning to apply 5 EMA to price as well as RSI is to compare areas (5 candles) instead of single point comparison for better insights.
The value above zero line is considered positive divergence and below zero line is negative divergence.
Recommended to combine with Pivot Points, Fibonacci or Gann levels as confirmation to enter the trade.
Reviews / feedbacks are most welcome !
Prasad Shenwai
prasad.s.shenwai@gmail.com
Skrip sumber terbuka
Dalam semangat sebenar TradingView, pencipta skrip ini telah menjadikannya sumber terbuka supaya pedagang dapat menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupun anda boleh menggunakannya secara percuma, ingat bahawa menerbitkan semula kod ini adalah tertakluk kepada Peraturan Dalaman kami.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat sebenar TradingView, pencipta skrip ini telah menjadikannya sumber terbuka supaya pedagang dapat menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupun anda boleh menggunakannya secara percuma, ingat bahawa menerbitkan semula kod ini adalah tertakluk kepada Peraturan Dalaman kami.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.