RSI Advanced Divergence Toolkit [Weekly v3]

RSI Advanced Divergence Toolkit – User Guide
🛠️ What This Indicator Does
This tool is designed for weekly chart analysis and helps identify high-probability reversal and continuation signals using:

✅ RSI Divergences (Wilder & Cardwell)

✅ RSI Failure Swings

✅ RSI Range Shifts

✅ Price Action Confirmation (hammer, support, resistance)

✅ Volume Confirmation

✅ Visual Divergence Lines on Price & RSI

It helps confirm both trend reversals and continuations, especially when RSI behavior aligns with price structure and volume.

📈 How to Use It
Use this indicator on weekly charts for best results, but it works on any timeframe. Combine it with your technical strategy and watch for the following signals:

🔍 Signal Types & What They Mean
🟢 Bullish Reversal Signals
These suggest potential trend reversals upward:

1. Regular Bullish Divergence
RSI forms a higher low

Price forms a lower low

⃤⃤🟢 Green triangle below the bar

📉 Indicates bearish momentum weakening — buy opportunity

2. Hidden Bullish Divergence
RSI forms a lower low

Price forms a higher low

🔽 Blue triangle below the bar

🔁 Indicates trend continuation upward — bullish signal

3. Bullish Failure Swing
RSI drops below 30 (oversold), then makes higher lows

Momentum reversal setup per Wilder

▲ White triangle below the bar

🔴 Bearish Reversal Signals
These suggest potential trend reversals downward:

1. Regular Bearish Divergence
RSI forms a lower high

Price forms a higher high

🔶 Orange triangle above the bar

🚨 Warning of potential top — sell signal

2. Hidden Bearish Divergence
RSI forms a higher high

Price forms a lower high

▽ Maroon triangle above the bar

🔁 Indicates trend continuation downward

3. Bearish Failure Swing
RSI goes above 70 (overbought), then makes lower highs

🟪 Purple triangle above the bar

Used to spot early bearish momentum shifts

🧩 Additional Confirmations
✅ Price Action Confirmation
Hammer (bullish reversal) or Shooting Star (bearish reversal) candlestick detected

Support/Resistance Zones based on recent highs/lows

✅ Volume Confirmation
Signals are more reliable when volume is above its 20-period average

Volume spikes (yellow dot) indicate strong interest — important during breakouts

✅ RSI Range Shifts
Uptrend RSI Shift: RSI stays above 40 — green background

Downtrend RSI Shift: RSI stays below 60 — red background

Confirms overall trend strength

🖍️ Visual Tools
🔗 Divergence Lines
Green / Blue lines: Bullish divergences on RSI and price

Red / Purple lines: Bearish divergences

Lines are dynamically drawn between recent swing highs/lows for quick visual confirmation

⚠️ Best Practices
Use in confluence with trendlines, major support/resistance, and chart patterns

Works best on weekly charts for longer-term swing signals

Combine with other tools like moving averages or Fibonacci for added validation


Disclaimer:
This indicator was created by an AI language model and is provided for educational and informational purposes only. The user uploading or using this script is not a financial expert and assumes all responsibility for any trades made based on this indicator. Always perform your own analysis and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.